Starting a vineyard has always been risky business; only for the most committed of individuals with a taste for adventure and a healthy belief in their own good luck. The United States hasn't always been known for its great wines, but in the last 30-40 years a unique culture arose that is now reaching its greatest test for the young industry.
With the recession in full swing, American wine makers are being hit from just about every angle from foreign competition to shrinking profit margins. Add to that a couple of lackluster harvest years in 2008, 2009, and now 2010; and American wine looks to be on the ropes.
The real estate boom was almost certainly the strongest in California, and that has may real estate developers pushing out to the suburbs to fill the demand for cheap housing. This has pushed many developers towards vineyards that have been less and less profitable as of late.
But this has taken its toll on the whole culture; where vineyards used to be are now parking lots and commercial towers. As this progress develops, the whole fertile area might be paved over in a bid to put up ever cheaper housing options. It seems as if nothing can stop this boom; not even dropping the price and margin of their product down to discount wine levels.
Oregon, a relative newcomer to the world market, has also seen its own share of problems. With local sales dipping and the price of export increasing, profitability is dropping accross the board. More consumers are opting for discount wines delivered to their homes over buying a $25 bottle in a restaurant, which is affecting commercial demand.
The majority of sentiment for wine related businesses seems a "hold it through" attitude; that in a few short years the engines will be kicking again and it will have been worth the wait out. Those that don't have this optimistic attitude are largely on their way out; looking to sell their piece of land while the price is still stable.
American wines barely got their feet on the ground by the end of the 20th century, but it seems as if it may have been the great peak. After 2001 the next vintage that holds a name is 2005; and from that point on the story seems like a slow decline into oblivion. Let's hope, for our own taste buds, that my bleak vision doesn't come to be reality and that we can continue to get great American wine delivery.
