Will the US wine industry ever recover from the current glut?
About this episode
The episode discusses the challenges facing the US wine industry amidst a supply glut and the implications for growers and wineries.
Wine supplies continue to outstrip demand. Glenn Proctor of Ciatti and Jeff Bitter of Allied Grape Growers return to discuss the larger-than-(some)-expected 2025 California grape crush, the path to equilibrium in wine supply, and whether the costs of domestic production and competition from imports mean that every acre of wine grapes pulled out of production will never come back. Topics covered in this discussion: The results from the California Grape Crush Report, why prices from that report don't reflect the actual health of wine grape and bulk wine pricing, and why so many industry analysts dramatically underestimated the size of last year's harvest. What the optimal strategy for wineries and growers is and whether buyers are pulling back on contracted commitments at the expense of future stability. What is going to happen to all those mothballed vineyards. The role of imports in replacing lost acres in California and the possibility that all future incremental demand for wine volumes in the US will be met by foreign producers. Relevant time stamps: 03:20 – The status of acreage rightsizing in California and the not-so-good fate of mothballed vineyards. 22:45 – The bulk wine…
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