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Jessica Mendoza

๐Ÿ‘ค Speaker
5952 total appearances

Appearances Over Time

Podcast Appearances

The Journal.
California's Wine Industry Is in Crisis

John Baletto was feeling desperate.

The Journal.
California's Wine Industry Is in Crisis

In a cruel twist, Sonoma had just experienced a stretch of incredible weather, giving growers like him a glut of perfect grapes this harvest season.

The Journal.
California's Wine Industry Is in Crisis

In another year, this would have been great.

The Journal.
California's Wine Industry Is in Crisis

But major customers had stopped renewing contracts he'd relied on for decades.

The Journal.
California's Wine Industry Is in Crisis

Fewer people were drinking.

The Journal.
California's Wine Industry Is in Crisis

So instead of a banner year, John couldn't sell enough to other wineries.

The Journal.
California's Wine Industry Is in Crisis

He says he could lose more than $3 million in sales compared to last year.

The Journal.
California's Wine Industry Is in Crisis

And it's not like John can just hold onto the extra wine and store it away.

The Journal.
California's Wine Industry Is in Crisis

Many of Sonoma's varietals are made to be enjoyed young, not aged for a long time.

The Journal.
California's Wine Industry Is in Crisis

And storage is expensive.

The Journal.
California's Wine Industry Is in Crisis

This year, it hasn't made economic sense to spend money on processing his grapes, so John made a choice that goes against every instinct he has as a farmer, letting the fruit die on the vine.

The Journal.
California's Wine Industry Is in Crisis

But just this type of loss that you're talking about, over 3 million, what would that mean for your business?

The Journal.
California's Wine Industry Is in Crisis

Part of John's backup plan involves bulk wine.

The Journal.
California's Wine Industry Is in Crisis

That's the kind of wine you see in stores like Target, Trader Joe's, and Costco.

The Journal.
California's Wine Industry Is in Crisis

It would help John cut his losses, but bulk wine also sells more cheaply, which would mean thinner margins.

The Journal.
California's Wine Industry Is in Crisis

In the meantime, John and other growers are chasing revenue anywhere they can find it.

The Journal.
California's Wine Industry Is in Crisis

Some are selling discounted grapes on Facebook Marketplace.

The Journal.
California's Wine Industry Is in Crisis

Others are leaning into other crops like apples or even selling off parcels of their land.

The Journal.
California's Wine Industry Is in Crisis

John's strategy is to transform his vineyard into more of a destination, offering experiences beyond wine.

The Journal.
California's Wine Industry Is in Crisis

He's adding lawn games, bringing in musicians, and setting up tram tours, and hopefully bringing back younger legal-age drinkers.