Many California growers can’t find buyers as the industry produces more wine grapes than the market wants. Wine consumption is declining globally as people drink less.

It’s harvest time in California wine country, but many growers are struggling to sell their grapes as changing drinking habits have caused demand to plunge. The decline is forcing some growers to tear out vineyards that their families have grown for generations.

Wine sales have decreased by more than 20% over a five-year period, causing prices paid for grapes to drop and prompting California growers to take roughly a quarter of the state’s vineyards out of production. Many growers are having to decide whether to harvest at a loss, leave grapes on the vine or replace vineyards with crops more in demand such as almonds, walnuts, pistachios and olives.

Third-generation grower Bill Berryhill said it means another year of losing money and wasting hundreds of tons of healthy grapes.

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[–] 4 points 2 days ago

This is so stupid, wine doesn't go bad. Just make more vintages and sell them when demand returns. Write it off as a long-term investment.

Uprooting decades-old grapevines because of momentary fluctuations in the market is fucking stupid.

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  • [–] 185 points 4 days ago* (28 children)

    You'd think this would mean wine would get cheaper or something, but actually it means that several thousands of bushels of grapes are going to rot, because capitalism demands profit over common sense

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  • [–] 52 points 4 days ago (5 children)

    Yeah; I thought a 20% decrease in sales would lead to a decrease in cost.

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  • [–] 75 points 4 days ago (4 children)

    When demand goes up, the price goes up.

    When demand goes down, the price goes up.

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  • [–] 24 points 4 days ago* (1 child)

    Yeah. The thing about the economy is only the supply side is allowed to win.

    You paying the offered price is fair market price setting.

    You getting a good deal is THEFT from the hard working business owners.

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  • [–] 8 points 3 days ago

    The really fun thing about the capitalist economy is that only the corporate retail side is allowed to win. The growers are going to get the least, the people who put the label on get the most and the stores get whatever they want.

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  • [–] 24 points 4 days ago (12 children)

    Wine is a luxury good, it could damage brand perceptions if they significantly markdown prices. They should bottle and sell it under a different label imo but who knows

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  • [–] 17 points 4 days ago (4 children)

    What is this? Civilization? JK

    Something tells me that younger generations simply don't give a shit, it maybe have been a luxury for older generations.

    I'll be honest in high school or college we all would buy the cheapest shit. (millennial). As in the two gallon jugs on the bottom of the shelf. Oh boy the hangovers were intense. And maybe I can't really tell much of a difference, but I remember I had a seven course paired with wine. All I could think was, yep tastes like wine and sloshed it down and ate the food.

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    [–] 100 points 4 days ago (26 children)

    Tariffs have reduced exports, particularly to Canada, which was the largest foreign buyer of American wine.

    Uh sure, it was the tariffs, and not the widespread Canadian boycott of American alcohol.

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  • [–] 45 points 4 days ago (10 children)

    Wasn’t the boycott because of the tariffs?

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  • [–] 34 points 4 days ago* (4 children)

    Also because the US Government is trying to destroy our country by any means. They still threaten to annex Canada, call our Prime Minister "Governor", claim Canada isn't a real country, interfere with our politics and elections, support Alberta and Quebec separatists, and do their best to crush our economy. Then they whine that we're being mean to them. It doesn't make us very inclined to send our money to the USA, especially when we can just buy Canadian wine instead.

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  • [–] 30 points 4 days ago (9 children)

    I picked up a bag of grapes in the store on the weekend. Product of the USA, nope. We avoid USA products as much as possible. Sorry to the good Americans.

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    [–] 27 points 3 days ago (5 children)

    Then why is everything still $40/bottle? This is some bs “nobody wants to work anymore” logic. I stopped drinking California wine because the prices kept going up but my wages haven’t.

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  • [–] 1 point 2 days ago (1 child)

    As a producer, you have to cover your costs and still try to make a profit.

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  • [–] 4 points 2 days ago

    In California they have maaaaaaaaaaaaaaassive tax breaks (i.e. negative land taxes) and subsidized/free water. The labor is all oppressed undocumented workers below minimum wage. How are European producers able to hit $5/bottle at the same quality level?

    It’s just greed and “brand reputation management” that keeps prices high in California.

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    [–] 34 points 3 days ago (10 children)

    I used to accidentally buy some California wine every now and then when not paying attention and grabbing a selection, it was never that good.

    Since trump 2.0 now i check everything to make sure it's not American. This isn't really surprising news

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    [–] 18 points 3 days ago (3 children)

    A lot of the regions in California have become stupid expensive, like Napa and Sonoma. Anything decent out of Napa is in the $30-$50 range. The average bottle price is somewhere around $75.

    And the entry-level stuff from Europe is better than the entry-level stuff from California. If I had to choose between a $15 Cabernet from California and a $15 Bordeaux, I'm choosing the Bordeaux. You'll also get a better price/quality ratio out of South America. Chile and Argentina make some good wines.

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  • [–] 8 points 3 days ago* (2 children)

    I really like wine and for the life of me I can't find a single California wine that is worth the price point when compared to Europe. Not to mention there's so much overmarketed slop wine that does every dirty trick in the book to make it taste disgustingly sweet or over-oaked. I very rarely have had a bad European wine for $50 and I can say that about half of the California wines in that range were worse than 25$ European counterparts. Maybe some of the $500+ bottles really are great in comparison to some of the Grand Crus out of Burgundy, but I haven't found anything in a reasonable price range that was worth it. And like you said, other regions in the world punch enormously above their price range that I basically don't buy anything from the Napa area of California as a matter of course. There are a few less popular regions in Cali that make great wine, but they are still too expensive for what they are.

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  • [–] 20 points 3 days ago (3 children)

    Well, the usual "free market"bullshit would dictate that the price drops until it finds enough demand again. But thanks to whatever bull shit system we currently have the price stays the same and they just write off everything that doesn't sell and they throw it away.

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  • [–] 7 points 3 days ago (2 children)

    We're in the MBA Free Market now, where prices never go down ever.

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  • [–] 8 points 3 days ago (1 child)

    And it's hilarious because they basically destroy their own market completely by doing that. People's habits will change if you are gouging them, especially in a recession.

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  • [–] 15 points 3 days ago

    Canada's also not buying as much California wine due to Trump's trade war and general insulting manner.

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  • [–] 14 points 3 days ago*

    And the smell of rot fills the country.

    Steinbeck 1939

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  • [–] 27 points 4 days ago

    I bet it helps a lot alienation an entire market to the north.

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  • [–] 22 points 3 days ago (2 children)

    Grapes are almost $9 a pound. These motherfuckers are out of their mind. A bag of grapes is $15 fucking dollars

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  • [–] 6 points 3 days ago

    It’s pretty tough in Australia for wineries too however, you still can find good wine fairly cheap. That’s good because it’s pretty tough for everyone at the moment with inflation being driven by Trump closing the Straight of Hormuz.

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  • [–] 5 points 3 days ago

    I like Bota Breeze for lower alcohol and cost efficient, something easy to enjoy with healthy home cooked food! Less or no alcohol is good trend to see for our health.

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  • [–] 17 points 4 days ago

    My wife is doing her part to keep that demand up.

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  • [–] 14 points 4 days ago (1 child)

    Wait until "it" happens and wine sales will go through the roof!

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    [–] 11 points 4 days ago (4 children)

    Seems like a good time to start making a fuck tun (~million butt loads) of brandy and dump excess inventory into that.

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