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California wineryThis story from Vinography.com paints a very grim picture regarding California's wine industry. Those in the know may want to comment on whether the article is too extreme or spot on.

Alston Mabry writes:

the wine industry has been suffering from the same asset inflation that the housing industry was going through. Shelves full of $40-50 bottles of Kullyfornia reds with nothing to distinguish them at all. Even Ozzie wines were getting expensive, and now with the AUD trying for par, it's even worse. But there are plenty of very drinkable wines in the $10-20 range, especially now that Costco and the like carry wine, so it's easy to downshift one's spending habits in the wine budget. Bad for the folks trying to unload inventory.

Banks would need a winery manager because they would have to make sure the stuff is properly cared for and doesn't spoil.

Having spent years making trips to various wine regions on the left coast, I was also always struck by how trendy it had become to own a winery, especially for newly rich folks from Los Angeles or San Francisco. Money was cheap, so prices just went through the roof. And then they would build these very fancy tasting rooms. Not surprising to see a crash. 


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