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The California Wine Industry Has Hit a Wall

Autumn harvest of grapes for excellent wine.

According to the San Francisco Chronicle, the California wine industry, like its global counterpart, is facing an unprecedented downturn. Gomberg Fredrikson, a wine industry analytics company, reports an 8.7 percent decrease in wine consumption as of 2023. Factors contributing to this decline include reduced alcohol consumption among millennials and Gen Z consumers, as well as the emergence of alternatives like hard seltzer and canned cocktails. The decline in wine sales follows a surge during the pandemic lockdown in 2020, which led to increased production by wineries. However, demand waned as customers stocked up and subsequently slowed their purchases, while restaurants also reduced their wine purchases during the same period.

Winery owners mentioned in the Chronicle express varying degrees of impact from the decline, with some reporting a 10 percent decrease in sales at best. However, industry analysts suggest that the decrease in sales could simply be a result of inventory adjustment as consumers gradually work through their wine collections and resume purchasing.

In other news:

1. **Michelin-starred restaurant hosts brisket night:** Osito, located in the Mission District, is deviating from its usual tasting menu to offer Texas-style brisket for one night only. The restaurant will host a brisket party today, Wednesday, May 8, from 4 to 8 p.m., accompanied by $10 cocktails. Reservations can be made through Tock at $45 per person, with walk-ins also welcome.

2. **Standard Fare adds dinner service:** Berkeley’s Standard Fare, known for its lunchtime salads and weekend brunch, is undergoing a makeover and will introduce dinner service starting in late May. While specific start dates are yet to be announced, dinner will be available from 4:30 to 9 p.m. on Wednesdays through Saturdays, alongside continued breakfast, lunch, and brunch offerings.

3. **Bay Area distillery to close:** Dissident Spirits, based in Richmond, has announced its closure at the end of the month due to evolving market conditions and insufficient growth. The company plans to sell off its inventory over the next three weeks, expressing gratitude to partners and customers for their support over the years.

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