At the recent Unified Wine & Grape Symposium in California, Jeff Bitter, the president of Allied Grape Growers, made an urgent plea for vineyard reductions to counteract the oversupply of grapes, which he estimates to be over 20,000 hectares. This marks the second consecutive year Bitter has called for action amidst declining demand for California wine.
Highlighting the imbalance between supply and market demand, Bitter’s recommendations include uprooting a significant number of vines in premium coastal regions like Santa Barbara, Lake, Mendocino, and Monterey counties, as well as in Lodi’s Zinfandel areas. He specifically suggested removing 11,300 hectares from these coastal vineyards, with 2,800 hectares allocated for Cabernet Sauvignon alone. Steve McIntyre, of McIntyre Vineyards, echoed this sentiment, stating that Cabernet Sauvignon isn’t suited for Monterey County and should be prioritized for removal.
In addition to Cabernet Sauvignon, Bitter proposed that 2,000 hectares of Pinot Noir from Monterey and Santa Barbara, along with another 2,000 hectares of aging Chardonnay from the same regions, should also be removed. On the other hand, for California’s interior regions, he recommended a reduction of nearly 9,000 hectares, focusing on Zinfandel, Merlot, and Cabernet Sauvignon, particularly in Lodi.
The challenges facing the industry extend beyond vineyard management; they encompass broader economic factors. In 2024, total U.S. wine shipments dropped by 4.2% amid rising competition from cannabis and other beverages, along with lower consumer confidence due to macroeconomic pressures like inflation and interest rate hikes. Bitter recognizes that merely removing vines won’t solve the issue, emphasizing that the current struggle is as much about demand as it is about supply.
California grape growers face a complex landscape, especially since they do not receive government assistance for vineyard removals like those in other wine-producing nations. This reality makes the financial decision of removing vines more daunting. Bitter points out the necessity of addressing the demand side, as continued oversupply could force some producers out of business.
The conversation among growers remains vital, with organizations like Allied Grape Growers actively helping vineyard owners evaluate their situations and make informed decisions about which acres may need to be removed. Ultimately, the industry faces a pivotal moment—balancing its identity rooted in generations of grape growing while navigating the challenging market dynamics of today.
For more insights on the situation, you can explore related articles on the effects of this over-planting and market adjustments: