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Economy

San Diego County's wine industry thrives, but challenges lie ahead

San Diego may be the capital of craft beers, but that’s not the only fermentation creation in town. The San Diego wine industry is growing with record high sales this past year. But as KPBS North County Reporter Alexander Nguyen shows us, there might be some unexpected bitterness and things might not be as rosé next year.

San Diego County wineries sales have been growing for the past two years, according to the latest San Diego County Vintners Association economic impact report.

The industry had about $54.5 million in gross sales last year, an 11% increase over 2022 — a record high.

“I was just pretty excited to see that in the report that in both '22 and '23, the sales grew by over $5 million year over year,” said Mike Weber, president of the Vintners Association.

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Weber is also Orfila Vineyards & Winery's finance director.

“It was a good year here for Orfila as well," he said. "We did grow our staff count by, I think it was three or four.”

The economic impact report shows that newer and expanding wineries added nearly 100 jobs last year, a 13% increase. Weber said the growth comes from local wineries getting better known and winning awards.

Workers and customers inside Orfila Vineyard & Winery's tasting room, June 6, 2024.
Workers and customers inside Orfila Vineyard & Winery's tasting room, June 6, 2024.

The report also shows flat sales for smaller, more boutique wineries.

“Our sales are pretty consistent with pre-COVID right now,” said Rodger Grover, Forgotten Barrel Winery owner. "People are getting nervous about the economy."

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Despite year-over-year growth, Grove said the industry has some challenges ahead, such as fire insurance.

"It's a big problem everywhere, especially in areas that abut open space," he said. "Properties like that are very difficult to ensure right now.”

Orfila saw that firsthand. The winery is paying 200% more for fire insurance than it did a few years ago.

“We were canceled from our provider and we had to go to the secondary market," Weber said. "The secondary is rather expensive.”

Inflation is also a concern. Grove said event bookings at his vineyards are down.

"We do a lot of small weddings here. We are seeing that people are starting to cut back — not just us, but industry-wide," he said. "That business is shrinking. People aren't making commitments to do parties that are going to cost them money."

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