2020 State of the Wine Industry Report Says U.S is Facing Wine Surplus

The diversity of alcohol businesses in America could be hurting the demand for wine, according to the 2020 State of the Wine Industry Report.

Silicon Valley Bank’s Wine Division released the report that says there’s a nationwide surplus of wine.

Some businesses in Northern Michigan tell us they’re not concerned about what this could mean for their sales.

Chateau Grand Traverse has been operating in Traverse City for 45 years.

They have a hand in the growing, packaging, and selling of their wines.

“We make something that’s truly unique from the ground. Unlike a lot of other beverages that could be made in any factory anywhere, the wines that we grow, people forget, are a natural product grown from here,” say Eddie O’Keefe, president of Chateau Grand Traverse.

O’Keefe says, “The reason we grow them here is because the flavors and the styles that we get out of here can’t be matched anywhere else.”

Silicon Valley Bank’s report says the industry has become too saturated with businesses, just like Chateau Grand Traverse.

This local winery says their in-house operation is what sets them apart from other vineyards.

“You can see how we grow the grapes, how we prune the vine, go through the wine making process and conclude it with a tasting and with a clear understanding of how it was grown.” O’Keefe says, “Inventory is exceeding demand.”

BonVin, a wine store in Traverse City says the surplus of vineyards could boost the local economy.

James McNeiece says, “People will come here because you’ve got a lot of wineries. If you have more, more people will come because it’s more to do. Variety is the spice of life, so the more, the better.”

They say wine isn’t going anywhere.

“They’re going to come back to wine, and the reason I say that is because wine has been with human beings for over 10,000 years. It’s in us,” says McNeiece.

To read more on the 2020 State of the Wine Industry Report, click here.