Cost of Napa quake put at US$4 billion

27th August, 2014 by Lucy Shaw

The 6.1 magnitude earthquake that struck northern California in the early hours of Sunday morning is expected to lead to losses of US$4 billion.

The historic McIntyre building at Trefethen Vineyards in Yountville, built in 1886, has been visibly sagging since the quake

The McIntyre building at Trefethen Vineyards in Yountville, built in 1886, was damaged by the earthquake

As reported by Bloomberg, Kinetic Analysis Corporation came up with the US$4 billion estimate, US$2.1 billion of which it believes will be covered by insurers.

The company, which estimates the financial impact of natural hazards, put the figure so high due to damages incurred at wineries in the Napa Valley region and the resulting costs of having to remain closed to tourists during the clean up.

“The main source of claims could well be commercial claims, those coming from wineries and vineyards and other commercial interests,” Robert Hartwig, president of the Insurance Information Institute, told Bloomberg. “It will take a while for the business owners to sort this out,” he added.

Winery owners affected by the quake rushed to clean up the debris yesterday in order to be able to reopen for business and carry on with the harvest.

Due to a prolonged spell of warm, dry weather, the harvest is one of the earliest in the region’s history this year, having been brought forward from September.

Winemakers in the region are facing worsening drought issues, which have blighted vineyards across Napa for the last three years.

Napa has 789 licensed wineries, which had sales of US$5.5 billion in 2011. The vast majority of wineries in the region remain open for business following the quake.

Napa Valley Vintners has created a section on its website encouraging wineries to help their neighbours affected by the earthquake.

The primary needs are for temporary crush facilities; barrel storage; loans of winery equipment; and legal, accounting and insurance advice.

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our newsletters

Job vacancies

Sales Account Manager - On-Trade

Berkmann Wine Cellars
Liverpool

Sales Account Manager - On-Trade

Berkmann Wine Cellars
M3/M4 corridor

Media Sales Manager - Hong Kong

The Drinks Business Hong Kong
Hong Kong

Regional Account Manager

New Generation Wines
London, UK

Experienced Sales Account Manager – On Trade

Cantina Goccia
London and the south, UK

National Sales Manager – Premium Drinks

Core Recruitment
London based with national travel

Wine Trainee

Stone, Vine & Sun
Twyford, near Winchester, Hampshire

Senior Technologist - Drinks

Conviviality Group
London, UK

Procurement Manager

JF Hillebrand Global Beverage Logistics
Essex, UK

Porter & Laker Manager

Porter & Laker
Essex, UK

Sales Manager & Brand Ambassador - Southwest

Salcombe Distilling Co.
Southwest of England - reporting to Salcombe HQ, GB

Head of Marketing

ATOM Supplies
Tunbridge Wells, Kent, UK

Private Client Sales Manager

Cult Wines
Hammersmith, London, UK

The Global Merlot Masters 2017

Deadline : 24th February 2017

The Prosecco Masters 2017

Deadline : 24th February 2017

db Awards 2017

Deadline : 28th April 2017

The Global Organic Masters 2017

Deadline : 3rd March 2017

Click to view more

The Global Sparkling Masters

the drinks business is thrilled to announce the launch of The Global Sparkling Masters

The Global Rosé Masters 2016

the drinks business is proud to announce the launch of the Global Rosé Masters 2016.

The Prosecco Masters 2016

Now in its third year, the competition will reflect the growth in popularity of this fresh and exciting sparkling wine from the picturesque regions of Veneto and Friuli.

The Global Pinot Noir Masters 2016

After the success of last year’s competition that judged over 250 wines from no less than 16 countries, the drinks business is proud to announce the third year of the Global Pinot Noir Masters

Click to view more