Wine consumption is down, and the world acreage of wine grapes is up. California produces some of the best wines in the world, but did you know that the Tax & Trade Bureau regulations allow for up to 25% foreign (non-US) wine to be blended with California wine and legally labeled “American?”
Older adults are drinking less alcohol, including wine, while younger people are increasingly opting for other types of spirits. Canada has been our top export market for US wine, but now, in response to tariff policies, they have quit buying. Other countries have put orders on hold for the same reason.
Large alcohol companies imported 20 million gallons of bulk wine between January and May of 2024 and received tax breaks when their exports matched their imports. The top 7 wineries control 70% of the U.S. market. E & J Gallo and The Wine Group (Cupcake, Beringer, Glen Ellen labels) were the two largest purchasers of foreign bulk wine. At the same time, it is estimated that 400-500,000 tons of California wine grapes went unharvested last year.
California makes 85% of the wines produced in the U.S. The state’s wine industry supports more than 420,000 California workers and generates over $73 billion in economic activity. We “vote” with our dollars. A great way to do that is by buying local wines; especially those produced by small, family owned, multi-generational wineries that support the local community…..like Talley Vineyards!
