"The Wrath of Grapes" - Newsweek

[Craig Camp]

It's the last day of the grape harvest in California's golden wine country, and Tom Larson is at the wheel of a belching forklift. He's hoisting crates of pinot noir grapes onto a conveyor belt, where they'll roll through a stemmer and crusher, soak in cold water for four days and then ferment in a tank. Watching him work is bittersweet, though, because Larson has been through the crusher himself over the past year. Like a half dozen other California wineries and vineyards in 2003, Sonoma Creek Winery, the 19-year-old family operation he started with his dad, sought bankruptcy protection amid the worst industry slump in decades. Sporting dirty leather cowboy boots, a company jacket and a quick but slightly desperate laugh, Larson laments the carbonated atmosphere of the '90s that lured many wineries into unsustainable growth rates. "It was blind ambition," he says. "Now it's about survival."

[fresco]

I can't help but think that, like a lot of stuff, California is a trend setter here, and we're going to see wineries all over the place in trouble.

There's a wine region about two hours east of Toronto which didn't exist five years ago and now is growing like it's on steroids--half a dozen wineries, a lot of acreage planted to vines and much more to come.

Until the wine craze hit, it was a fairly depressed area, so it's bringing some much needed dollars to the area. But when all is said and done, I suspect the biggest winners will be the people who sold their land to the grape growers.

[docsconz]

The wine market is no different than the tulip market in Holland in the 1600's or the stock market of the 1990's or any other market for that matter. It too is certainly subject to correction.

[fresco]

With one important difference: a wine glut results in a tangible (and drinkable) consumer benefit.