This is a difficult time for wine grape growers in California's Central Valley and around the state.
Not as many people are raising a glass of red or white wine these days
"The wine industry has found success over the last 30 years really on the backs of the baby boomer generation," said Jeff Bitter, president of the Allied Grape Growers.
"We experienced a lot of success and growth during the pandemic. A lot of pantry loading and consumption was up."
But since that time, Bitter says wine consumption has dropped.
"There's some headwinds right now with regards to alcohol consumption in general. We've seen lower alcohol consumption across all categories. Not just wine, but beer and spirits," said Bitter.
Allied Grape Growers represents about 500 growers and sells their wine grapes.
Bitter says California growers face a difficult decision whether or not to rip out their vineyard and plant a more profitable crop.
"It's gotten to the point many wine grape growers are trying to evaluate whether it is economically feasible to continue growing grapes with the market the way it is, the prices the way they are. We're seeing a lot of vineyards that are going unharvested this year because of lack of market," Bitter said.
It's possible up to 500,000 tons of grapes could go unharvested this year.
But Bitter says 30,000 to 40,000 acres need to be removed to restore balance with current consumption.
"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 find our balance on the supply side," said Bitter.
Many wineries are overstocked, which could lead to discounts on some of your favorite wines
California produces just 10% of the world's wine supply so foreign competition is fierce in the market.
Bitter says If you were to look at your wine label for origin and it reads 'American.'
That means it has been blended with as much as 25% of foreign products.