Like most things in 2020, Crush Season for vineyards and wineries has a whole new look and feel.

In more “normal” years past, Crush Season was a time of festivals, tourists, special events, and a way to celebrate together. At Holloway Ag, we work with many vineyards in the Paso Robles area. Gil Luera, Holloway Ag’s Business Development Associate for the Paso area, sees firsthand how this year’s Crush Season has been very different, and how many of the growers and wineries are adapting to survive during these changing times.

“Celebrations are off the table,” Gil says. “Growers are just heads-down with the mentality of ‘let’s get through this and look forward to next year.’”

Gil predicts that 2020 will lead to consolidation. The smaller growers that are really struggling will be bought by the bigger wineries that have more resources and dispensable capital. Some growers are letting their vineyard go because they don’t have the bankroll to continue investing for the long term. Other vineyards are pushing forward with an eye on the future knowing that we will eventually live in the world that is post COVID-19.

“I am having a lot of conversations with growers about the importance of investing in your grapes, even if you want to sell, so that your crop stays strong and healthy and you can get the best return – whether that is selling or holding on for better, future days,” Gil says.

He notes the vineyards that are connected to a winery are the ones that are surviving. The growers who are contracting out their grapes are having a much harder time succeeding in this downturn for demand.

Another problem with this year’s Crush Season is the wasted fruit.

“I have seen a lot of hanging fruit that was not harvested – even from last year,” Gil says. “Growers are struggling with a huge constipation of fruit. They are harvesting and delivering it for free just because there is too much fruit. We have a glutton of fruit here, there is just a lot.”

Within the wine industry in California, there has been high volume, high density planting that has overwhelmed the market. Even well before COVID, there was  excess supply because of over planting in places where vines should not typically go. The goal was an increase in production and it saturated the market. Now with the sharp decline in demand from bars and restaurants with the COVID-19 shutdowns, the oversupply is staggering.

“I see growers leaving the fruit on the vine rather than investing in the labor to harvest, and it is a shame to see that waste,” Gil says.

With much of the wine sales in California typically going to the bars and restaurants, and most of them shut down or at significantly less capacity, wineries have shifted their business model to warehouse wine sales to consumers to try and thin the supply. Bianchi Winery harnessed the power of social media to tell customers they could receive warehouse pricing on cases of wine, up to 50% off traditional consumer tasting room prices, if they bought directly from the winery. Many wineries are also promoting and seeing an uptick in subscription or club models from consumers who are staying at home more.

“The vineyards I work with are really looking to sell cases to consumers vs. bottles like you would normally see in a tasting room,” Gil says. “The volume increase is huge and these wineries are having to really pivot the business model to extend deep discounts to consumers, like they would for wholesale to restaurants who just aren’t doing the business right now.”

This Crush Season, most tasting rooms are open for outdoor service and all have made special accommodations available in order to open. This has resulted in bringing some tourism back to the region. However, the colder months are upon us and it is unclear how long tasting rooms will be able to operate outside and make those adjustments to keep doors open.

One thing we know, being in this business since 1932, is that things will get better for our growers and our communities. While we can’t predict the future, Holloway will be here to help the growers who held on in this Crush Season move into 2021 and beyond.