Cheers! Banner year forecast for California wine

(SFGate) - Drink up, because a wine report released Thursday says California is headed for a banner sales year with plenty of deals for consumers.

California, which produces 90 percent of the nation's wine and is the fourth-largest producer globally, is expected to have the highest rate of sales growth since the recession, according to Silicon Valley Bank's annual State of the Wine Industry Report. Silicon Valley Bank is a leading financial institution for the wine industry.

Bank founder Rob McMillan said he expects wine sales to increase by 6 to 10 percent in 2014 from last year. Despite a Morgan Stanley report last year that said demand would exceed supply, creating shortfalls around the world, Silicon Valley Bank analysts are seeing the opposite.

"News is good for the consumer," McMillan said. "Supply is in good shape and pricing is stable."

Good fruit, and lots of it

The count on last year's California grape harvest is expected to reach 3.9 million tons, second largest in state history next to the 4 million tons in 2012. Experts also predict that the quality of the fruit is high, meaning better wines.

As for the effect on prices, McMillan said drinkers can expect discounts among a smorgasbord of $10 to $18 bottles.

"Some of those wines in less-bountiful circumstances might sell for $30," he said.

Glenn Proctor of the Ciatti Co., a bulk grape brokerage firm, said shoppers will also be spoiled with options given the hearty supply. He expects that in the short term, winemakers will release alternative brands to make use of the excess.