In California, where 80% of the nation’s wine grapes are grown, vineyards are grappling with an oversupply that has led to tens of thousands of tons of grapes being left to rot. This year, Garret Schaefer, a vineyard owner, has been forced to let 50 acres—or 400 tons—of grapes go unharvested, a consequence of slumping demand in the global wine market. “They’re turning to raisins. They’ll just end up falling off,” Schaefer said, describing the fate of his crops.
The downturn in the industry comes amid a broader global trend. According to the International Organization of Wine and Vine, global wine consumption dropped by 3.5 billion bottles in 2023. Schaefer attributes the decline to several factors, primarily inflation, which has driven up the price of wine. The Federal Reserve Board of St. Louis reports that the price of a liter of wine has risen by more than 13% in the last five years.
Additionally, the World Health Organization’s declaration that no level of alcohol consumption is safe for health has further dampened wine sales. A shift in consumer habits is also contributing to the crisis, particularly among younger generations, who are drinking less than their baby boomer counterparts.
Brianda Gonzalez, a California native, is part of this trend. After her father, a bartender, became ill and had to quit drinking, Gonzalez explored the world of non-alcoholic beverages. “I went down this whole rabbit hole of non-alcoholic drinks and became fascinated by the category,” she explained. Her store, which sells non-alcoholic alternatives, attracts customers like Sarah and Helen Chacon, who are also moving away from traditional alcohol. “I do not drink wine… but I do like an alternative,” Helen said, while Sarah noted she had reduced her wine consumption for health reasons.
The ripple effect of the wine industry’s struggles is stark in California. For over 50 years, Don Worley has run a business focused on removing diseased vines. Now, growers are hiring him to rip out perfectly healthy vines as part of the larger effort to curb the oversupply. A single tractor can clear about 30 acres in one day, but the cost is steep. “What did it cost this man? $20,000 an acre, perhaps? Now he’s throwing it away,” Worley lamented.
Schaefer has already removed 60 acres of vines—about a third of his family’s vineyard, which has been in operation since 1894. This drastic decision has also led to a reduction in workers; Schaefer’s team has shrunk from six to eight full-time employees to just two. “We used to have six to eight full-time employees through the year. We’re down to two of us,” Schaefer said.
Industry experts warn that the situation may worsen. It is estimated that California may need to remove an additional 50,000 acres of vineyards—around 8% of the state’s remaining vineyards. The implications for the wine industry are severe, with the industry facing a reality far more painful than simple crop loss—one that is reshaping the future of wine production in the state.
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