In California’s wine country, vineyards are confronting a stark reality as growers like Garret Schaefer are forced to abandon their crops. Schaefer, whose family has been farming grapes for generations, had to let 50 acres of his vineyard go to waste this year. Around 400 tons of grapes were left to rot, largely due to an oversupply of wine and a significant drop in consumer demand.
Schaefer’s grapes are typically destined for fine wine, but with no buyers in sight, they are left to wither. “They’re turning to raisins. They’ll just end up falling off,” Schaefer said, describing the devastating situation.
The International Organization of Wine and Vine reports a sharp decline in global wine consumption, with an estimated drop of 3.5 billion bottles in 2023. The downturn has been attributed to several factors, with inflation playing a major role. According to the Federal Reserve Board of St. Louis, the price of a liter of wine has risen more than 13% over the past five years. Further complicating matters, the World Health Organization’s recent statement that no level of alcohol consumption is safe has dampened sales. Additionally, a shift in drinking habits among younger generations has exacerbated the problem, as many millennials and Gen Z consumers are reducing or forgoing alcohol consumption altogether.
Brianda Gonzalez, a young Californian, is part of this trend. She recalls how a family health scare prompted her to reassess her relationship with alcohol. “My dad’s a bartender by trade, but a few years ago, he got sick. So that meant alcohol had to be cut out,” Gonzalez explained. “I went down this whole rabbit hole of non-alcoholic drinks and became fascinated by the category.” Today, Gonzalez prefers non-alcoholic beverages, which she sells at her shop, reflecting a growing consumer interest in alternatives to traditional alcohol.
Helen and Sarah Chacon, regular customers at Gonzalez’s shop, represent a larger demographic of consumers shifting away from alcohol. Helen Chacon, who has never been a fan of wine, prefers alternatives. Meanwhile, Sarah Chacon says she’s been cutting back for “health reasons.”
California, which produces 80% of the nation’s wine grapes, has been hit particularly hard by these market changes. The effects are visible on the ground. Don Worley, who has spent over five decades in the business of removing diseased vines, now finds himself clearing out healthy fields. “What did it cost this man? $20,000 an acre, perhaps? Now he’s throwing it away,” Worley said as he described the growing practice of ripping out entire vineyards to adjust to market realities.
Schaefer, for his part, has already ripped out 60 acres—one third of his family’s vineyards, which have been in operation since 1894. The economic toll is compounded by labor cuts; Schaefer’s vineyard once employed six to eight full-time workers, but now only two remain.
Experts warn that this situation may worsen. According to industry predictions, another 50,000 acres, or 8% of California’s remaining vineyards, may need to be uprooted. For many growers, this is not just a financial blow—it’s a complete upheaval of a way of life that has sustained families and communities for generations.
As the wine industry grapples with these challenges, the future of California’s iconic vineyards remains uncertain, with many growers facing painful decisions about what comes next.
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