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Question: Are wineries presently facing unusual financial pressures?
Answer: Yes a most timely serious question. So many concerning increased climatic issues around the world affecting grape vineyards from frost, hail, freezes, drought, high temperatures & heat domes, diseases (mildew etc), wildfires and the like.
Total world wine production in 2023 was at the lowest volume since 1961. Too early for total 2024 numbers but it is not encouraging.
Also, the overall previous high demand for quality “alcoholic” wine may be lessening at the moment. Hopefully, this will bounce back.
We are already seeing some consolidation happening as it is a tough market especially for smaller wineries to survive in. We even see large corporations like Pernod Ricard selling off wine brands such as Campo Viejo & Jacob’s Creek. Today it was announced that Vintage Wine Estates in the USA has filed for bankruptcy protection under Chapter 11 and will be selling off portfolio assets that includes so many well known California wineries. In British Columbia with 327 licensed wineries there was a “catastrophic” January 2024 deep freeze in the Okanagan that has killed vines that will really hurt wineries future cash flow. As a result your scribe is expecting big winery changes as a result of mounting financial pressures. Monitor the business pages on continuing winery changes around the world.
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