In all, the grape supply situation in California appears more stable now than it has in quite awhile, with some concerns about under-supply. According to the Ciatti Company's Global Market Update, California is experiencing "strong buying activity for grapes and bulk wine, as well as increased sales for value-end labels and some higher-end wine programs." Speaking to various California wineries, we've been told that prices are higher than in past years, especially in the Central Coast and Lodi, and that demand is strong for Muscat and red varietals. This could prompt wineries to ease back on discounting as the cost of grapes goes up.