Does Drinking Local Matter? This California Winemaker Says It Does

American wineries are struggling right now. That’s the message California winemaker Patrick Cappiello of Monte Rio recently shared on social media.

While he’s speaking from the heart, numbers seem to back him up. According to the 2024 State of the Wine Industry Report, last year wine sales in the U.S. experienced negative volume growth between minus 4% and minus 2%.

‘Drink Our Wines,’ Says CA Winemaker

According to Cappiello, the reality is more drastic for many producers, thanks to a large amount of inventory and a drop in demand. However, he’s giving out homework: “Drink our wines. Buy our wines.” He challenges consumers and professional wine buyers to enjoy wine made in the U.S. for the next two months. “The difference will be lifesaving,” he urges.

Before making his first vintage in 2018, Cappiello logged decades of experience as a sommelier in the restaurant industry, and he’s no stranger to wine from places other than the United States. Over the phone, Cappiello emphasized that he’s not calling for a boycott of imported wine.

On the contrary, his request encourages everyone worldwide to support local businesses. Family-run wineries in France, South Africa, Germany, and Italy all have shared similar concerns that the current wine market is challenging, and they’d love to reach more customers.

In the United States, shop shelves and restaurants often provide options from every wine-producing region, as “the great consumer of everything,” in Cappiello’s words. Thanks to the current export conditions, consumers in other countries will rarely if ever find a bottle of wine from California or Washington, never mind Michigan, New Jersey, or Virgina at their stores.

Many U.S. Wineries Are Small Businesses

Cappiello’s point is that, given the wide range of options at our stateside doorstep, perhaps everyone could spend the next few months exploring closer to home. And, in the effort, ramp up sales and energy around the more than 11,000 wineries we have in the United States, over half of which are micro businesses, producing less than 1,000 cases, according to fresh data from Sovos ShipCompliant.

In fact, that same report shows that fewer than 3% of U.S. wineries are large enough to make 50,000 cases or more. In other words, if you look any further than the grocery store shelves, your purchase of a wine made in the U.S. will likely support not only a domestic business but a small one to boot. Monte Rio, for example, has one employee besides Cappiello, and that’s assistant winemaker Jesus Aleman.

Many economic and agricultural conditions make the wine industry a unique beast, and growers and vintners around the world can all share a beer and commiserate about common challenges. Labor shortages, inflation, rising costs of supplies, climate concerns, and expensive financing are spoken in every language.

Yet another hurdle for many U.S. vintners is the complicated wine sales landscape, which involves complex regulations and a three-tier sales system. Many wineries rely on tasting room sales or wine club shipments, which are still impacted by pandemic-era economic factors and discretionary spending patterns. All of this is compounded by the whims of extreme weather, capable of upending a year's work overnight, and the high barriers to financial resources, making growth an arduous venture.

Data also shows that the demographics of wine consumers are shifting, and younger drinkers are not adopting wine at the same rate these days. A 2023 Gallup report shows that 62% of adults under age 35 drink alcohol, down from 72% twenty years ago.

People have their reasons for passing up wine: wine labeling is confusing, health concerns, competing options, financial limits on dining out, and the perceived (sometimes very real) high cost of wine. Meanwhile, wine does hit the spot for many people—of every demographic—many of them just don’t know it yet.

Interesting Wines From The U.S.

There are incredibly cool wines coming out of the U.S. right now, and these are likely the products that will snag new drinkers. I asked Sam Parra, founder of Parra Wine Co. in Oregon’s Willamette Valley to weigh in on the drink American wine topic. Why? Because he’d just told me about a hibiscus-infused wine that he’s working on. I know his single vineyard wines to be fantastic, so I expect no less from this fresh project.

Parra is also making canned wines, affordable wines, and wines in lighter packaging. Additionally, he’s found ways to meet consumers where they are, placing his products in taquerias, tap houses, breweries, and independently owned corner stores. He also runs pop-ups at markets, wine bars, restaurants, and other spots where he can meet new customers.

It’s not easy for independent winemakers, says Parra, born and raised in St. Helena, California. After working in Napa and Sonoma, he relocated to the Willamette Valley in 2016. “As a boutique wine producer, I operate on a shoestring budget,” he shares. “Everything costs more for boutique brands since we purchase in small quantities.”

Parra says as soon as he collects from wholesale accounts or direct-to-customer sales, payment is immediately provided to growers, suppliers, custom crush facility owners, and others in the production chain. He’s clear about how important the customer is in this equation: “So what is happening now with wine consumers drinking less or shopping for affordable imported wine? Our boutique wine brands will not have funds to stay in business.”

Parra knows that consumers seek a “deeper connection” with brands today, and Cappiello’s message delivers—he’s opened up about the realities of handmaking a beverage, and in turn building a connection. Cappiello’s own winery, Monte Rio, produces unique wines such as a carbonic Zinfandel and an aromatic French Colombard, both from Lodi. He also collaborates with Pax Mahle on Skull Wines, which are blends of organic Californian fruit.

In the comments of Cappiello’s social media post, I recognized a few names of folks that I’ve covered in this column: Megan Bell, founder of Margins Wine, Amy Krahe of Conduit Wine, Stuart Spencer of St. Amant Winery, and more. All of them make quality wines worth seeking out, perfect starting points for a stateside wine kick.