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the price per ton to the Napa Valley average." The letter states
that:
We are always willing to work closely with you should
disparities arise in price. For this reason we will be
taking a look at the price per ton of Chardonnay. It
would be more of an incentive for us to do this if we
know that Groth would buy at least 60 tons of
Chardonnay for an additional three years beginning in
1986.
Dealings between Vineyards and Winery
Grape Sales
During 1982, Vineyards began selling grapes to Winery and
continued selling grapes to Winery each year thereafter through
1990. In general, the amount of grapes that Winery purchased
increased each year, and, during 1990, Winery purchased
approximately 96 percent of Vineyards' grapes. Prior to 1991,
Winery was not able to use all of the grapes produced by
Vineyards. After 1990, Vineyards did not sell grapes to
unrelated buyers. The percentage of Vineyards' total grape sales
represented by its sales to Winery during each year from 1981
through 1991 was as follows:
Year Percentage Sold to Winery
1981 0
1982 29.2
1983 70.8
1984 61.7
1985 68.7
1986 62.1
1987 72.9
1988 83.8
1989 85.7
1990 95.6
1991 100
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