Small Wineries Under Pressure: On today’s AgNet News Hour, the Ag Meter hit the road for an on-location interview at Ziveli Winery, tucked between Kerman and Fresno. Host Nick Papagni spoke with John and CalebCaleb Caleb, who shared their family’s rich Croatian winemaking roots, the challenges of keeping small wineries afloat, and what it takes to market wine in a rapidly changing industry.

A Family Legacy in Wine

John Nale explained how his grandparents immigrated from Croatia in 1928, eventually settling in the Central Valley and planting vines that would lay the foundation for generations of winemaking. Their winery today blends that family heritage with a modern vision for community, offering weddings, events, and tastings in a beautifully restored barn. “Every year we do a little project, and this is what we get,” John said, noting the pride in carrying on the tradition.

Struggles Facing Small Wineries

The Nales were candid about the headwinds California wineries face. Declining wine sales, high labor and equipment costs, and rising regulations have left many operations in the red. “There might be three or four wineries that are making any money,” John admitted. The family has been forced to take on off-farm jobs to make ends meet, with John warning that small wineries often need 1,000 acres and no debt to stay sustainable.

Caleb added that younger consumers often see wine as intimidating, preferring seltzers, cocktails, or sugary alternatives like Stella Rosa. He emphasized the importance of educating new wine drinkers and offering sweeter, approachable wines to attract them. Wine slushies and canned wines may not appeal to traditionalists, but they’re entry points for a new generation.

Competing in a Global Market

The interview also highlighted how imports from Italy, Chile, and Mexico are undercutting California growers. John noted it can even be cheaper to ship frozen grapes from Chile than to buy locally in Lodi. “If that’s true, we have a lot of issues,” he said. High costs and strict regulations, they argue, are pushing small farmers to the brink while international competitors thrive.

Despite the challenges, the Nales remain committed to keeping their family winery open. “We decided a long time ago that we’re going to keep farming until we’re made to put a sign up for sale,” John said.

For the full conversation with John and Caleb Nale of Ziveli Winery, listen to the AgNet News Hour.