Current thinking in the wine biz says we are in for slowing times. As I've asked before, is it a permanent slowdown or is it related to the Pandemic/lockdown/shortages/inflation cycle? Most think it's more permanent, with slowing demand for wine.
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| Sbragia Winery |
Some recent news items:
France is planing to rip out 30,000 hectares (74,000 acres) of grape vines, about 4% of the country's crop. Grape growers who agree to rip out vines will be paid to do so. The plan is financed by the federal and local governments, plus by the Bordeaux wine trade association. The reason given is that people are drinking less wine.
In Sonoma County, highly-regarded Carlisle Winery is closing up after the 2024 vintage because they want to retire. They tried to sell, but there were no reasonable offers, the owners saying that anyone interested wanted a bargain price.
Ed Sbragia is closing Sbragia Family Vineyards in Dry Creek Valley because tasting room traffic has fallen off. They are located way at the north end of Dry Creek, so the winery is quite a drive, maybe making them the canary in the coal mine for what might be coming. The tasting room is up for sale.
Vintage Wine Estates, owners of numerous wineries and labels, declared bankruptcy a couple of months ago. It seemed they had overdone the purchases and were overextended. The slowdown in sales did them in.
There's a wake-up call for the wine industry, and not just California, because there are too many acres of grapes and what many are afraid to say, prices are too high. A lot of grape growers will not break even financially in 2024 because they either can't sell their fruit for as much as in past years, or can't sell it at all.
Does this mean the California wine industry is dying, as some news outlets are saying? I'm looking at you, SF Chronicle. Nope, think of it as a rebalancing.
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