Leading up to the Covid-19 outbreak, the United States experienced a high demand for alcohol that could not be met by the available supply. When the pandemic hit, the demand for alcohol only increased, causing domestic brands to ramp up production significantly. Now, as the market is adjusting, many producers find themselves with excess stock and facing tough competition that may lead some businesses to close down.
Within the wine market, winemakers often see their craft as an art rather than a business. While winemaking is undoubtedly an art form, if the product is not commercially viable, the business may struggle. This is a common occurrence across various industries like fashion and restaurants, where businesses that are not profitable often face closure. The wine industry is no exception to this reality.
On a recent episode of the VinePair Podcast, Adam, Joanna, and Zach discuss a San Francisco Chronicle article that highlights the challenges facing California winemakers. They argue that the difficulties currently facing small winemakers are more a result of the pandemic’s impact rather than a fundamental shift in consumer attitudes towards wine. The hosts suggest that small winemakers need to be more transparent about their business strategies to better prepare themselves for challenging times.
Joanna discusses the hidden hazards of being too big for the bar, while Zach explores whether Burgundy’s low-sulfite wines can reshape tradition. Adam delves into the reasons why drink makers seek royal warrants and the potential concerns they may have in the current environment.
To listen to more discussions on these topics, tune into the VinePair Podcast on various platforms including Apple Podcasts and Spotify.