FRESNO COUNTY, Calif. (KFSN) – The evolving tastes of consumers are significantly impacting the wine industry, creating challenges for grape growers in the Valley and across California.
With a noticeable decline in wine consumption, fewer people are raising a glass of red or white. Jeff Bitter, president of the Allied Grape Growers, emphasized that the wine industry has largely thrived over the past 30 years thanks to the baby boomer generation. However, he noted, “We experienced a lot of success and growth during the pandemic, with increased pantry loading and consumption.” Since then, the situation has shifted dramatically.
Bitter explained that overall alcohol consumption is declining across various categories, including wine, beer, and spirits. Allied Grape Growers, which represents approximately 500 growers and markets their wine grapes, is witnessing a tough decision-making process among California growers. Many are considering whether to uproot their vineyards in favor of more profitable crops.
“It’s gotten to the point where many wine grape growers are evaluating the economic feasibility of continuing grape cultivation given the current market conditions and pricing,” Bitter stated. This year, an estimated 500,000 tons of grapes may go unharvested due to a lack of market demand.
To address this imbalance, Bitter highlighted the need to remove 30,000 to 40,000 acres of vineyards. “The challenge for us now is to balance supply and demand and find that equilibrium in the marketplace. As we see consumption dropping, we have to align supply accordingly,” he added.
Many wineries are currently overstocked, which may lead to discounts on popular wines. With California producing only 10% of the world’s wine supply, competition from foreign markets remains fierce. Bitter also pointed out that wines labeled as ‘American’ could contain up to 25% foreign products, indicating the intensity of the competition.
As the industry navigates these turbulent waters, it faces critical decisions that could shape its future.
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