The state of the wine industry: What we heard at Unified 2025

Industry experts weigh in

One of the most anticipated sessions each year is the State of the Industry talk, where experts break down supply, demand, and economic trends.
This year’s discussion was both sobering and insightful. The panelists painted a picture of an industry facing significant challenges—from declining wine consumption to financial pressures and shifting consumer behavior. However, there were also glimpses of opportunity for those willing to adapt.

Moderated by Mike Veseth, editor of The Wine Economist, the panel brought together some of the most knowledgeable voices in the wine business:

• Jeff Bitter – President of Allied Grape Growers, analyzing vineyard supply and acreage trends.
• Glenn Proctor – Partner at Ciatti Company, providing insights on bulk wine and grape market conditions.
• Stephen Rannekleiv – Global Beverages Strategist at Rabobank, offering an economic perspective on the wine industry’s financial pressures.
• Danny Brager – Principal at Brager Beverage Alcohol Consulting, breaking down consumer demand trends and wine’s shifting place in the beverage market.

These experts delivered a deep dive into where the industry stands today—and where it’s headed next. In this article, we highlight key takeaways from the session and wrap up with insights from Claret’s CEO, Shawn Zizzo, on how technology and innovation can help wineries navigate these headwinds.

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Jeff Bitter—from Allied Grape Growers—analyzes the supply side

With nearly a decade of experience leading Allied Grape Growers, Jeff Bitter is one of the most trusted voices on vineyard supply trends. His analysis of 2024 confirmed what many in the industry already suspected: California remains oversupplied with grapes.

While vineyard removals have ramped up, with 37,500 acres pulled out in the past year, the adjustments haven’t been aggressive enough. Bitter estimates that at least 50,000 additional acres need to be removed to bring the supply in balance with the declining demand.

This oversupply is creating financial strain, especially for growers whose contracts are expiring or not being renewed. Wineries, too, are feeling the pressure, as many face tightening credit and cautious lending practices from banks.

“There is no doubt—you should pull it out.”

Bitter’s message was clear: If growers are on the fence about removing vineyards, now is the time to act. The market is shifting, and waiting could mean even greater financial risk.

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Glenn Proctor—from Ciatti Company—on market pressures

As a partner at Ciatti Company, Glenn Proctor has spent decades navigating global grape and bulk wine markets. His analysis of 2024 confirmed that wineries are still dealing with excess inventory, making it difficult for them to commit to new grape purchases.

Bulk wine supply remains high, with Cabernet Sauvignon dominating available inventory, particularly in coastal regions. Meanwhile, wine pricing is under pressure, with discounting becoming more common across all price tiers.

Proctor noted that the industry isn’t just facing a temporary slowdown—structural changes are taking place. Buyers are more cautious, sales are sluggish, and supply adjustments need to continue for years, not just a single season.

“Flat is the new up.”

For wineries and growers alike, Proctor’s takeaway was that caution and strategic planning are key as the market searches for its new equilibrium.

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Stephen Rannekleiv—from Rabobank—on consumer & economic trends

With his global perspective on beverage markets, Rabobank’s Stephen Rannekleiv provided insights on the economic pressures facing wineries. The biggest factors impacting wine consumption today include:

• Changing demographics – Baby boomers, who have historically driven wine sales, are drinking less. Meanwhile, younger generations aren’t picking up wine at the same rate.
• Health-conscious consumers – The rise of anti-alcohol messaging and GLP-1 weight-loss drugs (like Ozempic) is dampening demand.
• Financial strain – Inflation and rising costs have squeezed consumer spending, making wine a lower priority for many buyers.

Despite these challenges, Rannekleiv emphasized that brands finding success today are those that build a strong emotional connection with consumers. Wineries that invest in branding, storytelling, and meeting consumers where they are (through convenience, packaging innovation, and digital engagement) have a path forward.

“What got us here won’t get us there.”

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Danny Brager—Brager Beverage Alcohol Consulting—on demand trends

As one of the leading analysts of wine consumer behavior, Danny Brager shared insights into how demand for wine is evolving. While overall wine sales have declined, there are pockets of growth, including:

• White wines outperforming reds, especially Sauvignon Blanc and Pinot Grigio.
• Lighter, lower-alcohol options gaining traction.
• Alternative formats (canned wine, RTDs, and flavored wine products) appealing to younger consumers.

Brager noted that price compression is real, with discounting becoming more widespread across all price points. He also emphasized that younger legal drinking age consumers are showing less interest in wine, reinforcing the need for innovation and better marketing strategies.

“If we do nothing, we risk going into decline.”

Clear message: The industry needs to evolve to stay relevant in an increasingly fragmented beverage market.

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Insight: Rethinking supply chain planning in a changing wine market

At Claret, we left Unified with a clear message: standing still is not an option. The industry is facing challenges, but wineries that evolve will find their way through.

One insight that stood out to us is how smarter supply chain planning can help wine companies navigate the industry's current headwinds. As wineries and growers grapple with wine oversupply, tightening margins, and shifting demand, having real-time visibility into inventory, forecasting, and sourcing decisions is no longer optional—it’s essential. With Claret’s technology, wineries can make data-backed decisions that align production with actual market needs, preventing costly inefficiencies.

At the same time, the beverage companies seeing growth today are those that are willing to innovate. Whether that’s offering new product formats, adjusting pricing strategies, or using technology to gain deeper consumer insights, adaptation is key. The traditional models of selling wine are shifting, and success now depends on a winery’s ability to respond quickly to market signals and consumer trends.

“The good news?  It’s easier and more cost-effective than many think to get started.”