OAKVILLE, Calif. — Facing a downturn in domestic wine sales, California wineries are increasingly turning to special events and diversified experiences to attract customers and boost revenue. Declining consumption among younger consumers, shifting tastes, and growing competition have put pressure on the industry, which produces about 80 percent of American wine.
Turnbull Wine Cellars in Napa Valley recently hosted a lobster picnic at its Fortuna vineyard, where guests enjoyed seafood and sparkling wine in a casual outdoor setting. This event was among several new initiatives, including Pilates classes and upcoming in-home tastings in Texas. Carey Jayne Norton, Turnbull’s director of marketing and sales, noted that smaller wineries like hers lack the extensive marketing budgets of larger producers and are therefore using creative event programming to maintain engagement.
The industry has seen a steep decline in consumer spending, dropping to $74.3 billion last year from $94.4 billion in 2020, according to a report by Silicon Valley Bank. The bank’s analyst Rob McMillan described the market as undergoing an unpredictable “roller coaster ride” but suggested the worst may be behind the sector. Smaller family-owned wineries are increasingly relying on after-hours events, while larger operations offer upscale food and wine pairings or corporate catering. Some wineries are expanding their reach by hosting exclusive gatherings away from their properties.
Since a California law passed in January allowing limited off-site winery events, many producers have embraced the opportunity to reimagine customer engagement. Decades ago, tourists would visit several wineries in a day, but industry executives say that number has declined, creating challenges especially for those located further from urban centers. In response, some wineries are becoming destinations themselves by integrating culinary, educational, and hospitality experiences.
Justin Vineyard Estate & Winery in Paso Robles exemplifies this evolving model, offering an array of programs including chocolate truffle-making classes, blind wine tastings, herbal garden tours, and luxurious accommodations. Jennifer West, Justin’s senior director of marketing, reported a 30 percent increase in first-time visitors over the past year, attributing this growth to the expanded range of offerings beyond traditional tastings.
Other wineries are tailoring events to family or group visits and diversifying their activities. At Laird Family Estate in Napa, general manager Rebecca Laird emphasized that guests now expect immersive experiences rather than simply sampling flights of wine. The estate hosts family movie nights and encourages more casual socializing, sometimes at lower price points.
The shift toward experiential marketing reflects a broader trend as wineries adapt to growing consumer demand for both alcohol and alcohol-free options. For instance, Clif Family Winery & Farm in St. Helena offers seasonal nonalcoholic flights and hosts trivia and bingo nights to attract diverse audiences. However, Clif’s president Linzi Gay stressed the importance of authentic offerings rather than programming that serves only to generate buzz.
Some producers also are moving tastings off property to reach new markets. The PlumpJack Collection of Wineries in Napa County reported success with midweek free tastings designed to encourage upgrades and bottle sales. John Conover, managing partner of the collection, highlighted a tasting event in New York City and plans for additional off-site experiences as essential strategies, noting that relying solely on onsite visits is increasingly ineffective.
As California’s wine industry navigates these changes, many wineries recognize that innovation and direct engagement with consumers are critical to sustaining sales amid evolving market conditions.