California Grape Growers Rip Out Vineyards as Wine Demand Plummets
California Farmers Are Struggling to Sell Grapes as Demand for Wine Drops
Wine sales have fallen more than 20% in five years, pushing California growers to pull about a quarter of the state's vineyards out of production. This harvest, roughly half the wine grape crop entered the season without buyer contracts, compared with 70–80% in a typical year. Many growers must choose between harvesting at a loss, leaving grapes on the vine, or replacing vineyards with almonds, walnuts, pistachios, or olives.
You raise a beautiful crop, and it’s really a nice vintage this year, and you drop it on the ground. It’s sad. All your work is just down the toilet.
- alexandre_m
> while young people are drinking less alcohol due to health and financial concerns
My observation is that gen-z spends less time socializing in real life, and drinking remains a social habit for the most part at a younger age. While they drink less, cannabis, vaping and psychedelics are on the rise.
It's a nice claim to say they are more responsible, but it tells an incomplete story.
- legitster
My parents live in a massive fruit growing region of the country. Just this year, 2 of the major packing firms in the county both declared bankruptcy. It's not just the trade war, but years of shrinking seasonal workers that fell off to a trickle as well.
The knock on effect is massive. The seasonal workers supported a large permanent workforce - and more importantly tax revenues in the county are collapsing.
But the really important thing to understand is that once the industry is gone, it's gone for a long time. The other markets competing with the US are already expanding their industries to fill the void. Once those trees are planted, they produce fruit for several decades to come.
- 5ersi
Long time casual wine drinker (and occasional beer), I find myself drinking less and less. Two reasons: first drinking a glass of average wine for the sake of having a drink makes no sense anymore. I prefer to have a drink more seldom but pick a better wine, that I actually enjoy. Second, as I get older I see that even a modest amount of alcohol has negative effect on me: during the day I get groggy, during the night my sleep is worse (I know, counterfactual, but so it is).
- dluan
Because of years of trade war, American wine industry is taking a beating around the world and a lot of Australia, NZ, and South Africa is picking up that slack. Even niche producers like Chinese and Japanese wine industry are very quickly maturing into real home-grown industries. The biggest market for California has always been Asia, and it's been near impossible to stumble into Opus One the way you used to be able to in Tokyo, Hong Kong, Beijing, etc.
Old world has always been able to be flexible, eating these kinds of punches by pivoting into NA or brandy during gluts, and demand has less fluctuations. This contraction, like a lot of everything else happening in the US, maybe was already coming because of some trends overlapping, but policy threw gasoline onto a combustible and fragile situation.
- jnaina
I'm Gen X. I lived my best life in the 80s and 90s, socializing, partying (frat boy years included), with alcohol as the main social lubricant. After Covid, almost everyone in my circle stopped or cut back on going out to bars and drinking, me included. It wasn't the price of drinks. Something about the lockdowns simply rewired the social norms (and our brains).
I feel for the farmers. I still miss a nicely chilled Margaret River Sauvignon Blanc now and then.
- mvkel
Napa used to be covered in peach orchards until it became clear that grapes were much more profitable. The trees were cleared to make way for vineyards.
The next profitable use of land will show itself soon enough.
- djmips
Perhaps demand is going down abroad due to people eschewing US products.
- ortusdux
https://wineinstitute.org/press-releases/one-year-later/
https://www.fas.usda.gov/data/commodities/wine-related-produ...
- hadlock
I noticed Trader Joes was selling champagne grapes the other day. Things must be really, exceptionally grim. France has been stockpiling wine in state owned warehouses (to keep it off the market) and paying farmers to tear up their vineyards.
- 1-6
Let's just say it as it is... Wine is 'supposedly' an acquired taste but for most, it tastes bitter and not enjoyable for the cost. Tastes shift and luxury items from yesteryear no longer makes a strong statement about affluence to this generation.