OAKVILLE, Calif. — California wineries, facing a significant decline in domestic wine sales, are increasingly turning to special events and diversified offerings to attract consumers and generate revenue. The state, responsible for roughly 80 percent of U.S. wine production, has struggled in recent years with shifting consumer preferences, heightened competition, and a reduction in younger adults drinking alcohol.
In early August, Turnbull Wine Cellars in Oakville hosted a lobster picnic at its Fortuna vineyard, drawing 45 guests for $150 per person. This was part of a broader strategy that has included earlier events such as a Pilates class with brunch and upcoming plans for in-home tastings in Texas. Turnbull’s marketing director, Carey Jayne Norton, emphasized the challenge smaller wineries face without large promotional budgets and stressed the need for creative engagement with customers.
The downturn in wine spending reflects a broader trend: U.S. consumer wine expenditure dropped from $94.4 billion in 2020 to $74.3 billion last year, according to a report by Silicon Valley Bank. Analyst Rob McMillan described the industry’s recent trajectory as unpredictable and indicated that while it may be past its worst phase, consumer fatigue remains a concern. The bank’s survey revealed that smaller wineries are leveraging after-hours events, while larger producers focus on upscale pairings and corporate functions, as well as offsite member gatherings.
Legal changes have facilitated some of these efforts; a California law enacted in January allows wineries to host a limited number of events away from traditional tasting rooms, enabling venues like Turnbull’s vineyard to create novel experiences. This shift comes amid evolving tourist behavior, with visitors now averaging fewer winery stops per trip, pressuring wineries located farther from urban centers to redefine themselves as destinations.
At Justin Vineyard Estate & Winery in Paso Robles, offerings have expanded considerably since fall 2024. Programs such as chocolate truffle-making classes, blind tastings, herb garden tours, and luxury vineyard experiences are available on weekends, alongside a Michelin-starred restaurant and an onsite inn. Jennifer West, Justin’s senior marketing director, said these initiatives have driven a 30 percent increase in first-time visitors, broadening the appeal beyond traditional wine tasting.
Other wineries are tailoring experiences to changing consumer expectations. Rebecca Laird, general manager of Laird Family Estate in Napa, noted growing demand for hospitality catering to families and larger groups, emphasizing that guests often seek an experience rather than just wine sampling. Laird Estate has introduced family movie nights paired with wine for adults, responding to a desire for more casual and cost-conscious outings.
Some wineries are addressing the rise of alcohol-averse consumers by offering nonalcoholic options. Clif Family Winery in St. Helena provides a seasonal mocktail flight made from organic jams and honey and hosts bingo and trivia nights. However, as Clif’s president Linzi Gay explained, producing nonalcoholic wines that meet their standards remains a challenge.
Efforts to engage consumers offsite have also proven successful. The PlumpJack Collection of Wineries tested midweek complimentary tastings with upgrade options, resulting in strong sales, according to managing partner John Conover. His team has organized tastings in cities like New York and plans additional off-property experiences, acknowledging that relying solely on visitors coming to the winery is no longer a sustainable strategy.
As California wineries navigate an uncertain market, many industry participants agree innovation and adaptability will be key to sustaining customer interest and reversing the recent decline in sales.