California Wildfires: Wine Costs Could Spike, But That's Not All

The immediate concern regarding wildfires raging through California’s prime wine country is the devastating loss of life and property, but the wind-fueled fires could also have lasting effects on wine prices. The fires burning in Napa, Sonoma and other northern California counties had eaten up more than 57,000 acres by Tuesday and were responsible for about a dozen deaths, more than 100 injuries and tens of thousands of evacuations.

Industry experts say the fires could cause years-long shortages of grapes used in winemaking, and the cost of keeping fire away from vines and wineries could be passed along to consumers more immediately, they say. California produces about 85 percent of wine produced in the United States, accounting for $34.1 billion in U.S. sales in 2016, and much of the country’s premium wine is produced in Napa and Sonoma counties.

There is a spark of good news: Most of the grapes used in winemaking have already been harvested. But late-season varietal grapes, such as those used to make Napa County’s pricey cabernet sauvignon and merlot, are largely still on the vine.

“It’s prime cabernet time,” Alison Crowe, director of winemaking at Plata Wine Partners in Napa, told the Santa Rosa Press Democrat. “People have been active for the last two weeks (with cabernet) and they are going to keep doing it for another two weeks.”

Earlier this summer, Vinfolio, which sells and buys collectible fine wine, said fires could cause wine price spikes, particularly if wine is produced from high-quality grapes that only grow on ancient vines that can’t easily be replaced. A loss of old grape vines can also cancel contracts with top producers.

California Wildfires: Latest-Need-To-Know Facts

And even if the grapes survive, both those remaining on the vines and those in production now can take on smoke taint, which causes a bitter charcoal flavor in the wine. That happened in 2008, and some vintners stewed over whether the wine was even worth selling.

The desirable grapes used to make cabernet sauvignon and dessert wines are especially vulnerable to smoke taint, James Harbertson, a wine chemist at Washington University’s Wine Science Center, told Newsweek. The problem is particularly acute in the making of red wines, because of greater contact between the wine and the grape skin during the winemaking process, the magazine said.

As officials focus on saving humans and properties, it’s unknown exactly how many acres of vineyards have been consumed by the fires, but losses are expected to be significant. It takes about five years before grapevines produce wine-worthy fruit, so some vintners will have to start over — an expensive process. The cost of replanting just one acre can cost between $15,000 and $25,000, the Napa Valley Register reported.

“It is very expensive to plant grapes in California, let alone Napa and Sonoma Valley, and very expensive to build anything, not to mention regulations and permits,” Harbertson told Newsweek in an email. “The economic losses here can be quite severe.”

Photo: The remains of the fire that damaged Signarello Estate winery after an out-of-control wildfire moved through the area on Monday Napa, California. (Photo by Justin Sullivan/Getty Images)