(KSBY) — Wine sales in California have dropped to a two-decade low, according to a recent industry report by Impact Databank, and local winemakers in Edna Valley say they are holding their own but still feel the pinch.
Xiaowei Cai, a Cal Poly agricultural business professor, said multiple forces are driving the decline.
"There are several factors that contribute to the decline at the same time," Cai said.
Those factors include a rising focus on health, more alternative beverage options, and younger generations drinking less alcohol.
"And then lastly, inflation and higher living costs, they have squeezed consumers," Cai said.
To offer some relief, State Senator John Laird has proposed Senate Bill 917, which would loosen restrictions for small wine growers looking to sell at their local farmers' markets.
"I'm very supportive of it," said Jean-Pierre Wolff, owner of Wolff Vineyards.
About five years ago, Wolff sold wine at the Downtown San Luis Obispo Farmers' Market. He said participating was always a bit of a challenge.
He described the hurdles small wineries faced under current rules.
"All the do's, the don'ts, the regulations, the limitations, there was only one allowed, so we had to take turns," Wolff said.
The bill, which addresses some of those issues, passed the full state legislature on Aug. 13 and is now on Gov. Gavin Newsom's desk. Newsom has until Sept. 30 to decide on the bill.
Cai said the legislation will not fundamentally resolve the decline in demand, but it could boost marketing opportunities for some winemakers.
"And that is really meaningful to those small wineries," Cai said.
Tyler Eck, co-owner of Dunites Wine Company, agreed.
"Anything that supports small businesses, small wineries, people that want to get started in agriculture, I think is really great, and I think it strengthens our community," Eck said.
