2019 LODI WINE AND VINEYARD ECONOMICS SURVEY

1. 2019 Lodi Vineyard and Wine Economics Survey

Dear Wine Industry Member,

The Wine Business Events/Industry Symposium Group will be presenting the Fourth Annual Lodi Vineyard and Wine Economics Symposium on Thursday, June 27, 2019 at Wine and Roses Hotel in Lodi.

Below you will find the Lodi Survey, the results of which will be presented at the event by Brad Alderson, Advisory Board member of the event. We would greatly appreciate you taking time to complete the Survey.

The Lodi Wine Region continues to make headlines in all major wine publications. It has been such an interesting year, with so many important issues and changes. We hope to discover the compelling issues and topics that will impact your business during the next few years. All responses will be kept confidential as we are not collecting email addresses.

You can register to attend the Lodi Vineyard and Wine Economic Symposium event at

www.lodiwinesymposium.com beginning late April 2019.

Many thanks for helping us to make the results of this survey meaningful!

Question Title

1. Which category best describes your participation in the wine industry?

Grower/Vineyard Management

Winery (using primarily internally managed/owned vineyards)

Winery (using primarily purchased grapes)

Professional/Consultant

Financial

Other

Other (please specify)

Question Title

2. How many cases did you produce last year?

Less than 2,500 cases

2,500, to 10,000 cases

10,000- 100,000 cases

Over 100,000 cases

Not applicable

Question Title

3. Which region best describes your primary location?

Lodi

Delta/Clarksburg

Sierra Foothills

Sacramento

Napa

Sonoma

Modesto

Other

Other (please specify)

Question Title

4. How many vineyard acres do you farm in total? (Growers and Wineries)

None

Less than 100 acres

100-1,000 acres

Over 1,000 acres

Question Title

5. How many vineyard acres do you farm in the Lodi AVA?

None

Less than 100 acres

100-1,000 acres

Over 1,000 acres

Question Title

6. Which aspects of your vineyard have you mechanized?

Pre-pruning

Pruning

Leafing

Thinning

Harvesting

Suckering

Question Title

7. Did you remove any vineyards last year? If yes, please answer question 8.

No, I did not remove any vineyards

Question Title

8. Why did you remove the vineyard?

The variety was difficult to sell/unprofitable and no contract

I can get a contract for another variety

The vineyard is too old, had a disease or had other wine quality issues that affected profitability and ability to sell grapes, so I am replanting the same variety

The vineyard had age, disease or other wine quality issues that affected profitability and ability to sell, so I am replanting to a
new variety

The land was needed for something else

Other (please specify)

Question Title

9. How did your wine grape tonnage in 2018 compare with 2017?

	Strong	Good	Same	Weak	Difficult
Cabernet Sauvignon	Cabernet Sauvignon Strong	Cabernet Sauvignon Good	Cabernet Sauvignon Same	Cabernet Sauvignon Weak	Cabernet Sauvignon Difficult
Merlot	Merlot Strong	Merlot Good	Merlot Same	Merlot Weak	Merlot Difficult
Syrah	Syrah Strong	Syrah Good	Syrah Same	Syrah Weak	Syrah Difficult
Pinot Noir	Pinot Noir Strong	Pinot Noir Good	Pinot Noir Same	Pinot Noir Weak	Pinot Noir Difficult
Zinfandel	Zinfandel Strong	Zinfandel Good	Zinfandel Same	Zinfandel Weak	Zinfandel Difficult
Sauvignon Blanc	Sauvignon Blanc Strong	Sauvignon Blanc Good	Sauvignon Blanc Same	Sauvignon Blanc Weak	Sauvignon Blanc Difficult
Pinot Grigio	Pinot Grigio Strong	Pinot Grigio Good	Pinot Grigio Same	Pinot Grigio Weak	Pinot Grigio Difficult
Chardonnay	Chardonnay Strong	Chardonnay Good	Chardonnay Same	Chardonnay Weak	Chardonnay Difficult
Other	Other Strong	Other Good	Other Same	Other Weak	Other Difficult

Other (please specify)

Question Title

10. Looking ahead at harvest 2019 versus last year 2018, please rate what you expect the demand for these varieties will be.

	Strong	Good	Same	Weak	Difficult
Cabernet Sauvignon	Cabernet Sauvignon Strong	Cabernet Sauvignon Good	Cabernet Sauvignon Same	Cabernet Sauvignon Weak	Cabernet Sauvignon Difficult
Merlot	Merlot Strong	Merlot Good	Merlot Same	Merlot Weak	Merlot Difficult
Syrah	Syrah Strong	Syrah Good	Syrah Same	Syrah Weak	Syrah Difficult
Pinot Noir	Pinot Noir Strong	Pinot Noir Good	Pinot Noir Same	Pinot Noir Weak	Pinot Noir Difficult
Zinfandel	Zinfandel Strong	Zinfandel Good	Zinfandel Same	Zinfandel Weak	Zinfandel Difficult
Chardonnay	Chardonnay Strong	Chardonnay Good	Chardonnay Same	Chardonnay Weak	Chardonnay Difficult
Pinot Grigio	Pinot Grigio Strong	Pinot Grigio Good	Pinot Grigio Same	Pinot Grigio Weak	Pinot Grigio Difficult
Sauvignon Blanc	Sauvignon Blanc Strong	Sauvignon Blanc Good	Sauvignon Blanc Same	Sauvignon Blanc Weak	Sauvignon Blanc Difficult

Other (please specify)

Question Title

11. Looking toward the next three years, please rate whether these issues will negatively affect your winery/and or vineyard operations in Lodi.

	Not significant	Weak Impact	Moderate Impact	Strong Impact
Labor costs	Labor costs Not significant	Labor costs Weak Impact	Labor costs Moderate Impact	Labor costs Strong Impact
Labor availability	Labor availability Not significant	Labor availability Weak Impact	Labor availability Moderate Impact	Labor availability Strong Impact
Training labor	Training labor Not significant	Training labor Weak Impact	Training labor Moderate Impact	Training labor Strong Impact
Increased material costs	Increased material costs Not significant	Increased material costs Weak Impact	Increased material costs Moderate Impact	Increased material costs Strong Impact
Demand for product	Demand for product Not significant	Demand for product Weak Impact	Demand for product Moderate Impact	Demand for product Strong Impact
Water	Water Not significant	Water Weak Impact	Water Moderate Impact	Water Strong Impact
Environmental regulations	Environmental regulations Not significant	Environmental regulations Weak Impact	Environmental regulations Moderate Impact	Environmental regulations Strong Impact
Fuel and energy	Fuel and energy Not significant	Fuel and energy Weak Impact	Fuel and energy Moderate Impact	Fuel and energy Strong Impact

Question Title

12. Please rate whether these issues will positively affect your winery and/or vineyard operation in Lodi.

	Not significant	Weak Impact	Moderate impact	Strong Impact
Demand for new varieties	Demand for new varieties Not significant	Demand for new varieties Weak Impact	Demand for new varieties Moderate impact	Demand for new varieties Strong Impact
Improved recognition of the Lodi appellation	Improved recognition of the Lodi appellation Not significant	Improved recognition of the Lodi appellation Weak Impact	Improved recognition of the Lodi appellation Moderate impact	Improved recognition of the Lodi appellation Strong Impact
Recognition of the Lodi appellation price/value ratio	Recognition of the Lodi appellation price/value ratio Not significant	Recognition of the Lodi appellation price/value ratio Weak Impact	Recognition of the Lodi appellation price/value ratio Moderate impact	Recognition of the Lodi appellation price/value ratio Strong Impact
Overall consumer demand	Overall consumer demand Not significant	Overall consumer demand Weak Impact	Overall consumer demand Moderate impact	Overall consumer demand Strong Impact
Increased local tourism	Increased local tourism Not significant	Increased local tourism Weak Impact	Increased local tourism Moderate impact	Increased local tourism Strong Impact
Increase DTC sales	Increase DTC sales Not significant	Increase DTC sales Weak Impact	Increase DTC sales Moderate impact	Increase DTC sales Strong Impact

Other (please specify)

Question Title

13. Compared to 2017, were you able to raise your average case or tonnage prices for your winery and/or vineyard operations in Lodi?

	No	Yes, 2% or less	Yes, 5% or less	Yes, more than 5%
Prices	Prices No	Prices Yes, 2% or less	Prices Yes, 5% or less	Prices Yes, more than 5%

Question Title

14. How did your 2018 profits and revenues compare with 2017?

	Worse	Same	Yes, 2% or less	Yes, +5% or less	Yes, more than 5%
Profits	Profits Worse	Profits Same	Profits Yes, 2% or less	Profits Yes, +5% or less	Profits Yes, more than 5%
Revenues	Revenues Worse	Revenues Same	Revenues Yes, 2% or less	Revenues Yes, +5% or less	Revenues Yes, more than 5%

Question Title

15. As a Lodi winegrower, how will you improve your profitability? Please check TOP THREE

Improve quality to get higher prices

Increase production of new varieites and products

Diversification of sales from large wineries to other buyers

Promote use of vineyard names and sub-appellation names

Continued Lodi promotion

Support increased wine tourism

Increase productivity per acre

Increase mechanization

Other (please specify)

Question Title

16. As a Lodi based winery, how will you improve your profitability?
Please choose only your TOP THREE

Improve quality to get higher prices and demand

Increase production of new varieties, brands and products

Diversification of sales form distributors to direct to consumer

Promote use of vineyard names and sub-appellation names

Continues Lodi appellation promotion

Support increased tourism

Improve winery productivity

Reduce material costs

Other (please specify)

Question Title

17. What do you think your top concerns will be at the end of 2019? CHOOSE THREE!

Water availability

Vineyard acquisitions

Cost of materials

Production capacity

Labor availability and costs

Global competition

Grape contract negotiations

Succession

Consolidation of winegrape buyers, retailers/distributors

Finding grapes I need at a good price

Selling my grapes/availability of buyers

Increased regulations

Question Title

18. Which areas of your business could require capital over the next three years?

Vineyard acquisition

Vineyard development/redevelopment

Information technology

Crush capacity

Fermentation capacity

Barrel storage capacity

Case goods storage

Visitor / hospitality center development

Mechanization equipment

Labor

Other (please specify)

Question Title

19. Have your business plans changed lately?

	Yes	No
Connecting more with Millennials, but not forgetting Baby Boomers	Connecting more with Millennials, but not forgetting Baby Boomers Yes	Connecting more with Millennials, but not forgetting Baby Boomers No
Hiring marketing staff	Hiring marketing staff Yes	Hiring marketing staff No
Investing in more water saving technology	Investing in more water saving technology Yes	Investing in more water saving technology No
Investing in more wine making and vineyard technology	Investing in more wine making and vineyard technology Yes	Investing in more wine making and vineyard technology No
Looking at alternate means of distribution	Looking at alternate means of distribution Yes	Looking at alternate means of distribution No
More consumer direct, tasting room emphasis	More consumer direct, tasting room emphasis Yes	More consumer direct, tasting room emphasis No
Reducing cost of operations	Reducing cost of operations Yes	Reducing cost of operations No
Signing more grape contracts	Signing more grape contracts Yes	Signing more grape contracts No
Trying to raise prices by upgrading quality	Trying to raise prices by upgrading quality Yes	Trying to raise prices by upgrading quality No

Question Title

20. On a scale of 1 to 5, how important are the following social media tools?

	Very Important	Important	Somewhat Important	Rarely important	Not important at all- never use
Facebook	Facebook Very Important	Facebook Important	Facebook Somewhat Important	Facebook Rarely important	Facebook Not important at all- never use
Twitter	Twitter Very Important	Twitter Important	Twitter Somewhat Important	Twitter Rarely important	Twitter Not important at all- never use
Instagram	Instagram Very Important	Instagram Important	Instagram Somewhat Important	Instagram Rarely important	Instagram Not important at all- never use
Linked in	Linked in Very Important	Linked in Important	Linked in Somewhat Important	Linked in Rarely important	Linked in Not important at all- never use
You Tube	You Tube Very Important	You Tube Important	You Tube Somewhat Important	You Tube Rarely important	You Tube Not important at all- never use
Company blog	Company blog Very Important	Company blog Important	Company blog Somewhat Important	Company blog Rarely important	Company blog Not important at all- never use

Other (please specify)

Question Title

1. Which category best describes your participation in the wine industry?

Question Title

2. How many cases did you produce last year?

Question Title

3. Which region best describes your primary location?

Question Title

4. How many vineyard acres do you farm in total? (Growers and Wineries)

Question Title

5. How many vineyard acres do you farm in the Lodi AVA?

Question Title

6. Which aspects of your vineyard have you mechanized?

Question Title

7. Did you remove any vineyards last year? If yes, please answer question 8.

Question Title

8. Why did you remove the vineyard?

Question Title

9. How did your wine grape tonnage in 2018 compare with 2017?

Question Title

10. Looking ahead at harvest 2019 versus last year 2018, please rate what you expect the demand for these varieties will be.

Question Title

11. Looking toward the next three years, please rate whether these issues will negatively affect your winery/and or vineyard operations in Lodi.

Question Title

12. Please rate whether these issues will positively affect your winery and/or vineyard operation in Lodi.

Question Title

13. Compared to 2017, were you able to raise your average case or tonnage prices for your winery and/or vineyard operations in Lodi?

Question Title

14. How did your 2018 profits and revenues compare with 2017?

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15. As a Lodi winegrower, how will you improve your profitability? Please check TOP THREE

Question Title

16. As a Lodi based winery, how will you improve your profitability?Please choose only your TOP THREE

Question Title

17. What do you think your top concerns will be at the end of 2019? CHOOSE THREE!

Question Title

18. Which areas of your business could require capital over the next three years?

Question Title

19. Have your business plans changed lately?

Question Title

20. On a scale of 1 to 5, how important are the following social media tools?

16. As a Lodi based winery, how will you improve your profitability?
Please choose only your TOP THREE