California Wine Faces a Generational Challenge: On today’s AgNet News Hour, the spotlight turned to the California wine industry and its struggle to adapt to shifting consumer habits. Marlena Paolilli, head of marketing at Cry Baby Wine, joined the program to discuss the generational changes shaping wine consumption and the innovative approaches needed to revive the market.

Oversupply and Changing Tastes

Paolilli explained that California’s wine sector continues to battle an oversupply of grapes, a problem rooted in the pandemic and compounded by an influx of new producers. With over 550,000 acres of vineyards, industry leaders like Jeff Bitter of Allied Grape Growers believe acreage needs to shrink to about 500,000 to stabilize prices. “There’s just an overabundance of wine right now,” Paolilli said, adding that it will take until 2027 or 2028 for the market to fully rebound.

Younger Generations Shifting Away from Wine

One of the greatest challenges, Paolilli noted, is engaging younger consumers who are experimenting with seltzers, craft beers, and non-alcoholic options. Many younger drinkers find wine intimidating and expensive, while others are simply less inclined to drink due to health awareness and the permanence of digital footprints. “They don’t want to be recorded drunk and doing something stupid,” Paolilli observed.

Innovation in Wine Marketing

To bridge the gap, Cry Baby Wine is pursuing new products like CBD-infused and non-alcoholic wines aimed at younger demographics. Paolilli also stressed the importance of direct engagement—from farmers’ markets to boutique tastings—that let consumers try wines before committing to a full bottle. “What you did yesterday isn’t working anymore,” she said. “You have to be innovative with the new world.”

Despite regulations and market challenges, Paolilli remains optimistic. She believes California’s unmatched climate and global reputation will keep the industry strong if wineries embrace change, connect with younger audiences, and invest in storytelling.

For the full conversation with Marlena Paolilli and more insights into California’s evolving wine industry, listen to the AgNet News Hour at AgNetWest.com