“The Chinese use two brush strokes to write the word ‘crisis.’ One brush stroke stands for ‘danger,’ the other for ‘opportunity.’” – John F. Kennedy
By Jim Trezise
In the early 1980s, the New York grape and wine industry was in an economic crisis due to a perfect storm of subsidized imports, corporate changes, changing consumer tastes and restrictive laws. The crisis was headlined in the New York Times regional section and on the cover of The Wine Spectator. Around the same time, Zinfandel grapes in California were left hanging or disappearing altogether.
In the late 1980s, the Center for Science in the Public Interest (CSPI) and other anti-alcohol groups organized a campaign intended to decrease wine consumption. At the same time, on the other coast, Pierce’s Disease spread throughout California like wildfire, decimating entire regions dependent on the availability of premium grapes.
For decades, the wine industry’s growth was strangled by antiquated laws that prohibited direct shipment to consumers across state lines. In the same era, many states were looking to raise alcohol taxes earmarked to fund specific projects or just increase their coffers.
Each of these developments was a crisis, and together a potential catastrophe for an industry that spans 60 countries and all 50 states.
CBS’s 60 Minutes newsmagazine featured an episode titled “The French Paradox,” with renowned French and American physicians claiming that moderate red wine consumption with food has significant benefits for heart health. Not only did white wine drinkers switch to red, and nondrinkers come to wine, but that one television segment stimulated international research on wine-and-health as well as creation of the Subcommission on Wine, Nutrition and Health at the International Office of Vines and Wines.
The Pierce’s Disease crisis exploded so broadly and quickly that it stimulated unprecedented collaboration among industry, government and the research community in record time
After years of legal wrangling, in June 2005 the U.S. Supreme Court’s “Granholm” decision created new opportunities for direct-to-consumer wine shipping that is now legal in 47 states. The 2017 Craft Beverage Modernization and Tax Reform Act significantly reduced the federal excise tax every year for wineries of all sizes.
Conclusion: We’ve seen this movie before. Past is prologue. It’s “deja vu all over again.”
Current crises
There’s no doubt that we’re again in very challenging times. I’ve witnessed many crises over my 43 years in this business, but never so many, so big and all at the same time.
- Climate change is creating frequent weather disasters and altering where we can grow what grape varieties.
- Generational shifts in overall consumption preferences, including attitudes toward alcohol, are not in wine’s favor.
- Increased competition among alcohol beverages, and beverages in general, has crowded retail shelves and decreased wine’s share of mouth.
- A far more sophisticated, well-funded and global anti-alcohol movement is directly affecting consumer attitudes and behavior.
- Governments worldwide are examining their policies toward alcohol.
- The possibilities of greatly reduced migrant labor — and greatly increased tariffs — could drastically affect production and consumption of wine worldwide.
It’s easy to get down, but it’s time to get up.
Every one of these crises involves humans, which means there is the possibility for information, education and change. If you go back to the potpourri of crises 50 years ago, there are many parallels. And if you look at how they were resolved, it was through people getting smart, getting together and getting results.
Pierce’s Disease mobilized the industry, government and researchers to collaborate like never before. Today we have the Spotted Lanternfly, so let’s do it again.
Climate change is affecting grape regions, but the continuing development of new grape varieties — including extreme cold-hardy Minnesota vines like LaCrescent and Frontenac — has increased the earth’s capacity to create the fruit of the vine. Probably more than any other industry and agricultural sector, the grape and wine industry has embraced and increased sustainability in its multiple aspects.
Besides adopting a wider range of consumer-friendly packaging, many in the wine industry have branched out to offer low- and no-alcohol wines for those who prefer them. Innovative promotions like Come Over October have brought the worldwide wine community together to celebrate and communicate the many unique qualities of a beverage that has been part of our cultural heritage for over 6,000 years.
State associations, regional groups and wine trails throughout the country continue to tout their uniqueness and local contributions, attracting millions of tourists and billions in tourist expenditures, which support local communities and tax bases.
WineAmerica and Wine Institute collaborate on monitoring public policy issues affecting the American wine industry, while FIVS does the same on an international level, and the National Grape Research Initiative in the area of research. The wine industry contributed $276 billion to the American economy in 2022, and benefits all 50 states, and a new study will be out this spring.
Passion, Commitment, Collaboration
Those characteristics of the late Rich Smith, a grower and vintner from the Monterey region, also define who receives the annual Rich Smith Award of Excellence to continue his legacy. (It will be presented on January 29 in Sacramento, Calif.) They’re like an incredibly strong three-legged stool of character which collapses if any leg is missing.
It’s 2025. A new year, and a fresh start to transform crises into opportunities. We can do that by applying passion, commitment and collaboration — and by sharing a glass of what we love.
Diversity is our strength. Unity is our Power.
Cheers!
Jim Trezise
Jim Trezise is president of WineAmerica (WA), the only national wine industry association in the United States. WA is a 500-member strong organization that encourages the growth and development of American wineries and winegrowing through the advancement and advocacy of sound public policy. Membership is encouraged to support the important work of WA, which benefits all U.S. wineries. Go to https://wineamerica.org/ for more information.
