20 MONTEREY COUNTY WEEKLY JUNE 19-25, 2025 www.montereycountynow.com 40,200 acres were harvested in 2023. The value of winegrapes fluctuates year-to-year due to quality and demand. In 2015, for instance, with the market still surging, the county’s crop brought in just under $186 million. A year later, the amount jumped to almost $239 million. In 2022, as the market hit full slide, local grapes were worth just $173.7 million, a low point in 10 years’ worth of annual crop reports. But in 2023, that figure rebounded to $194.6 million. (The 2024 crop report should be released in July.) “We’re all struggling a little,” Rodems says. “But we all know consumers go through waves.” ••• While Langhoff says the wine industry has “fumbled” when it comes to marketing toward the potential future consumers of fine wine, there is an equally important shortcoming. “There is a time and place for every demographic to be addressed,” she says. According to Gallup, the nation’s greater diversity may be in part responsible for the decline of interest in wine among young adults. In the early 2000s, less than one-third of 18- to 34-year-old Americans were Black, Latino, Asian or of another racial minority. Now they account for almost half. Historically, the Gallup data suggests, non-white Americans have consumed less alcohol—57 percent compared to 66 percent of white Americans ages 18-34 who drink. Winemakers, Langhoff suggests, have missed reaching out to all markets and instead focused on marketing to a more upscale consumer. “Let’s be honest, if you want to attract a younger audience, you have to do something different,” she says. The wine industry is at a crossroads. However, some are finding that it is possible to go in several directions at once. For most Monterey County winemakers, there is an understanding of the many forces at play. Vineyard manager Matt Shea calls the listing of Bernardus’ Marinus property for $2.6 million a strategic move. It is planted with Cabernet Sauvignon, Cabernet Franc, Petit Verdot, Malbec, Petite Syrah and Merlot—apart from Cab, some of the grapes with less market appeal. “[The owners] want to renew our focus on Chardonnay, Pinot Noir and Sauvignon Blanc,” he explains. “Those are our core wines.” But it is almost a status quo approach. Marinus accounted for just 2 percent of Bernardus’ production, according to Shea, who believes the market dip will flatten out within a harvest or two. The winery will continue to purchase grapes from 14 suppliers and keep production levels the same. The downturn and uncertainty rippling through the market has given corporate operations pause—and may be changing winemaking dynamics. No longer are buyers on the vineyard real estate market so eager. Marinus Vineyard has been listed for six months without going under contract. Jouillian—with 30 planted acres and a tasting room on 655 acres in Carmel Valley—went on the market for $11.7 million in September 2024, and there it remains. Boekenoogen’s 333 acres, with 95 under vine, was listed at the end of December 2024 for $11.5 million. Almost six months later the price has been reduced to $7.7 million. In 2023, Americans consumed 899 million gallons of wine, according to Wine Institute data. While that is down almost 100 million gallons from the previous year—a staggering figure— it remains well above consumption levels at the beginning of the millennium, when Americans drank 565 million gallons. Spritzers and other introductory wines, along with low alcohol versions could easily achieve what wine coolers and Boone’s Farm did for other generations: turn them into wine aficionados—eventually. Conglomerates have the capacity to produce and market both entry-level and fine wines on a national level. Under current circumstances, it is not additional acreage that proves attractive, but wineries with established distribution networks and sound financial metrics—in other words, mid-sized vineyards with a following. Gallo purchased the Hahn label in 2023, despite the downturn. At the time, winebusiness.com ranked Hahn as the nation’s 40th largest winery, producing 450,000 cases annually (compared to some 100 million by Gallo). According to IBIS World, Constellation Brands—which sold a number of its labels to Gallo—Treasury Wine Estates, The Wine Group, Gallo and a few other conglomerates account for 50 percent of U.S. wine revenue. Industry analysts say that in the current market, mid-sized wineries are most at risk of being “lost in the middle,” as Jenny Heinzen of Vineyard Professional Services told industry magazine Meininger’s International. Mid-sized operations butt up against the corporate powers. Smaller producers—and Monterey County remains a haven of smaller winemakers—can create a market-favorable boutique niche, she added. “People still love the personal experience,” Bowlus observes. “We have a good wine community. There’s a real authenticity, without the upselling.” Bowlus notes that he has not seen a drop in tasting room visits. But Albatross Ridge is considering more events to bring in foot traffic. “Small producers, we’re still waiting and seeing,” Rodems says. Amid all the turmoil, it remains farming and winemaking. And while demand draws some to addressing the growing breadth of demand—spritzers, low alcohol wines, cans and such, the fundamentals have yet to flinch. “We keep turning out good wine,” Shea says. “That’s all we can do.” U.S. WINE CONSUMPTION America’s taste for wine had been on a generally upward climb for decades, causing optimistic winemakers to expand production. While experts say the current slide is a market correction—consumption figures for 2023 were even with a decade earlier—other potential issues loom. The chart is based on consumption of all types of wine, including dessert wines and vermouth. MILLIONS OF GALLONS 899 506 467 565 687 687 923 1,040 1,250 1000 750 500 250 0 1990 1995 2000 2005 2010 2015 2020 2023 “DOWNTURNS ARE OPPORTUNITIES TO REINVENT.” Source: Wine Institute
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