California wine producers are losing millions of dollars every year, but they’re also struggling to keep the lights on and keep the grapes flowing, according to a new report by the Wine Institute.
The California Wine Institute (CWI) released a study last week, which said the state’s wineries are struggling to pay their workers and wineries for services, and that the industry is “losing $20 billion annually.”
But, the report also found that the wine industry has seen a jump in winery revenue since 2013, when the industry’s economic boom began.
“While California is experiencing record-high vineyard production, the overall industry’s sales are still relatively low,” the study said.
“And the growth in wineries is slowing.
California wine is expected to grow about 0.2 percent annually through 2019.”
But while the industry may be facing the challenges of keeping production at a high level, the industry has also found new opportunities in the growth of the internet.
“The internet has made it easier for wineries to reach customers through the internet and has allowed the wine-makers to diversify their portfolio of products,” said CWI President Robert F. Smith.
“These are all new opportunities for winemakers, but I think it is good that we’re seeing that the internet is making the winemaking process easier for us, which is good for the consumers.”
The study also noted that the online wineries, which allow consumers to compare wine prices, are not necessarily the best option for winery operators.
“It is a challenge to maintain the integrity of a winery’s wines when they are losing a lot of money,” said Smith.
In fact, the CWI said that the wineries could lose more than $100 million annually because of the loss of customers.
“In addition to losing sales, the winery has to make some additional investments to keep up with the demand,” the report said.
Some wineries have started using more of their own grapes, such as the recent addition of red grapes.
However, that doesn’t mean the industry won’t be facing some challenges, especially in the future.
“I think this is an area that we’ll see some competition,” said Tom Jaffe, vice president of communications for the California Wine Growers Association.
“There are many new opportunities, especially from internet companies like Google.
I think that is the primary driver for the growth.”
Jaffe said the winemaker will be able to use Google and other online services to help them maintain a healthy wine industry.
The CWI’s report found that wineries spent $17.8 billion on services in the first nine months of 2019, up from $15.6 billion in the same period of 2018.
However the study also found a sharp decline in the amount of money spent on advertising, which fell by 13 percent to $2.6 million from $4.4 million.