I wondered when

[Sage]

Just saw a post about the biggest winery in WA cutting grape contracts by 40%. Article said 90% of wineries produced less than 5000 cases.

When the town of Walla Walla WA has over 130 wineries, I have never been able to comprehend where it was being sold. When we travel, about every major populated area has wineries (and some very rural). I live in a county of less than 3500 people.... 2 wineries. I don't even know what label they use!

Like about everything, a lot of people jumped in. I've bought equipment from some that sunk!

 

[winemaker81]

Winery tourism is big business, even in areas not thought of as big winery areas.

I have no idea what the failure rate is in wineries. Among small businesses it's something like 80% within 3 years of start, and that may be so for wineries as well.

Of more interest is the largest WA winery cutting grape contracts by 40%. That's got me wondering.

 

[ChuckD]

Perhaps some of the big wineries are cutting because of the proliferation of small wineries. From what I understand demand is slowing declining overall as well.

 

[jswordy]

Small wineries ballooned, just like craft beer joints. The beer is the big thing here, and despite that, several craft breweries have announced they are closing. The average per-person consumption of alcohol in the US is declining. In the face of that, it's just a matter of who gets the remaining business. And it's hard to compete with big brands that are on grocery and discount store shelves, in easy reach.

 

[winemaker81]

About 15 years ago there was a boom in the frozen yogurt industry in my area. Within a year there were 5 shops within 10 miles of our house. I told my sons (pre-teen at the time), that within 2 years there would be only one. Pretty much like Highlander, but without swords and lightning.

Sure enough, all but one closed, and it hung on for about 5 years before it closed as well.

Now we're seeing a boom in premium ice cream shops. I figure the boom will continue for another year, and then within 3 years we'll have a repeat.

 

[ibglowin]

Just saw a post about the biggest winery in WA cutting grape contracts by 40%. Article said 90% of wineries produced less than 5000 cases.

When the town of Walla Walla WA has over 130 wineries, I have never been able to comprehend where it was being sold. When we travel, about every major populated area has wineries (and some very rural). I live in a county of less than 3500 people.... 2 wineries. I don't even know what label they use!

Like about everything, a lot of people jumped in. I've bought equipment from some that sunk!

They have sold a few $$$ worth to me over the years. Might be a bunch of unsold grapes/juice/bulk wine in WA State this Fall. CSM is in influx for sure.

 

[ibglowin]

Its nothing ominous for the industry really. It's just the usual these days. Cutting cost to "maximize value for the shareholders". Big business running the playbook.

https://www.wineenthusiast.com/culture/industry-news/ste-michelle-sale-washington-wine/

Of more interest is the largest WA winery cutting grape contracts by 40%. That's got me wondering.

 

[Sage]

I see wineries here that are "old" that being 1980s that are still fairly conservative. I see new, BIG money, wineries. "I'm told", big money is wineries driven out of Napa Valley and putting the money here (great growing area).

The majority just have tasting rooms, but some new ones are multiple millions. A couple are destination types.

 

[jswordy]

Appeared just yesterday, but I've been reading about it for some time. The commentary about survey significance in this article in a wine industry publication contradicts what I read elsewhere. Looked at in the very best possible light, consumption is flat. Yet the number of brands and outlets exploded over the past decade.

https://wineindustryadvisor.com/2023/08/15/gallup-poll-wine-lags-behind-spirits-gain-ground

 

[ratflinger]

Right, I wouldn't be surprised to see some contraction where the winery side closes and the grapes are grown for contract.

 

[Jovimaple]

About 15 years ago there was a boom in the frozen yogurt industry in my area. Within a year there were 5 shops within 10 miles of our house. I told my sons (pre-teen at the time), that within 2 years there would be only one. Pretty much like Highlander, but without swords and lightning.

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