Producers Consider Removing Vineyards as Wine Consumption Declines

FRESNO COUNTY, California – Changing consumer tastes are having a dramatic impact on the wine industry.

This is a difficult time for wine grape growers in the Valley and across the state.

Not many people raise a glass of red or white wine these days

“The wine industry has enjoyed success over the last 30 years, really thanks to the baby boomer generation,” said Jeff Bitter, president of Allied Grape Growers.

“We have had a lot of success and growth during the pandemic. It has greatly increased pantry loading and consumption.”

But since then, Bitter says wine consumption has dropped.

“There are some headwinds at the moment when it comes to alcohol consumption in general. We saw lower alcohol consumption across all categories. Not just wine, but beer and spirits,” Bitter said.

Allied Grape Growers represents about 500 growers and sells their wine grapes.

Bitter says California growers face a difficult decision about whether or not to uproot their vineyards and plant a more profitable crop.

“It’s gotten to the point where many wine grape producers are trying to evaluate whether it’s economically viable to continue growing grapes with the market as it is, prices as they are. this year due to lack of market”, said Bitter.

It is possible that up to 500,000 tons of grapes will not be harvested this year.

But Bitter says 30,000 to 40,000 acres need to be removed to restore balance with current consumption.

“The challenge for us now is to balance supply and demand and find that balance in the market. As we see consumption fall, we have to find our balance on the supply side,” Bitter said.

Many wineries are overstocked, which can lead to discounts on some of your favorite wines.

California produces only 10% of the world’s wine supply, so foreign competition is fierce in the market.

Bitter says if you looked at your wine’s label to find out the origin and it would read ‘Americano’.

This means it was mixed with up to 25% foreign products.

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