Last week bad news came on two fronts for Napa. The first came from a Silicon Valley Bank report about a potential swath of Napa wineries on the verge of bankruptcy and land values dropping 15% from their peak in 2007. Then came more bad news with the European grapevine moth on the attack and quarantine orders in place for big portions of the Napa Valley. If that is not bad enough, other wine regions are trying to kick poor Napa Valley when it is down. We keep hearing the same old song when we visit other wine regions about Napa Valley’s overpriced wines finally getting their comeuppance. The truth of the matter is any wine that is currently priced over $20 is going to be a tough sell in 2010. In every wine region we travel, even lonely Lodi, there are many wines priced above the $20 and well beyond, from $40 to $60. All wineries, no matter where, are facing a very tough consumer frugality and need to take a new tack if they want to survive. Now for some pleasant news!
