California winegrowers say they are facing one of the toughest markets in years, as shifting demand and cheaper imported alternatives put pressure on local vineyards.“This is the worst it’s ever been. I’ve never seen it this bad before,” said Steve Felten, a fifth-generation grape grower in Lodi.Felten said some growers are leaving grapes unharvested, with vineyards showing signs of decline as demand drops.Industry leaders point to large beverage companies turning to imported grape juice and concentrate as a key factor.“Instead of buying grapes from growers here in Lodi and throughout California, they’ve stopped and found cheaper wine,” he said.Under current federal labeling rules, wine can be labeled “American” if at least 75% of the grapes are grown in the United States, with the remaining portion allowed to come from other countries.Some industry groups also point to a federal program known as duty drawback, which allows companies to recover certain taxes and import duties when products are exported. Critics say large producers can benefit from the program when using imported inputs, further incentivizing cheaper sourcing.Supporters of Assembly Bill 1585 say the current system can be misleading and harms domestic growers.“The heart of America’s wine industry is right here,” said Assemblymember Damon Connolly, the bill’s author. “Some wines bottled in the United States are being misrepresented to consumers as ‘American’ even though they are blended with cheap, imported grapes.”The bill would require wine sold in California and labeled “American” to be made with 100% U.S.-grown grapes.“You don’t see French wine with Australian wine. You don’t see Italian wine with Chilean wine in it,” Lodi Winegrape Commission Executive Director Stuart Spencer said.Backers, including the California Association of Winegrape Growers, say the change would improve transparency and help level the playing field for local producers.See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
LODI, Calif. —
California winegrowers say they are facing one of the toughest markets in years, as shifting demand and cheaper imported alternatives put pressure on local vineyards.
“This is the worst it’s ever been. I’ve never seen it this bad before,” said Steve Felten, a fifth-generation grape grower in Lodi.
Felten said some growers are leaving grapes unharvested, with vineyards showing signs of decline as demand drops.
Industry leaders point to large beverage companies turning to imported grape juice and concentrate as a key factor.
“Instead of buying grapes from growers here in Lodi and throughout California, they’ve stopped and found cheaper wine,” he said.
Under current federal labeling rules, wine can be labeled “American” if at least 75% of the grapes are grown in the United States, with the remaining portion allowed to come from other countries.
Some industry groups also point to a federal program known as duty drawback, which allows companies to recover certain taxes and import duties when products are exported. Critics say large producers can benefit from the program when using imported inputs, further incentivizing cheaper sourcing.
Supporters of Assembly Bill 1585 say the current system can be misleading and harms domestic growers.
“The heart of America’s wine industry is right here,” said Assemblymember Damon Connolly, the bill’s author. “Some wines bottled in the United States are being misrepresented to consumers as ‘American’ even though they are blended with cheap, imported grapes.”
The bill would require wine sold in California and labeled “American” to be made with 100% U.S.-grown grapes.
“You don’t see French wine with Australian wine. You don’t see Italian wine with Chilean wine in it,” Lodi Winegrape Commission Executive Director Stuart Spencer said.
Backers, including the California Association of Winegrape Growers, say the change would improve transparency and help level the playing field for local producers.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
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