The same headline has been resurfacing for years: wine is in trouble. These stories are nothing new, but part of the cyclical nature of the beverage industry (and humanity in general). History always repeats itself.
Recently, the articles have been fast and furious — quick to cast blame, suggesting younger consumers are the cause of a wilting industry.
The truth is: things aren’t great, but the cause is multifaceted. The Silicon Valley Bank 2025 State of U.S. Wine Industry Report notes that sales began declining in 2018, and even longer ago in Europe. This worldwide slump offers an uncertain landscape. Producers in Washington are dropping fruit, and vines are being pulled from the ground in California and Bordeaux. The unpredictability of climate change also continues to thrash growers, causing devastating frosts in cool climate regions like the Finger Lakes and cementing wildfires as an expected part of the growing season in California.
And as Baby Boomers are sunsetting, Millennials and Gen Z bring a new kind of energy to consumerism. They exercise the power of choice. Ready-to-drink cocktails and a robust seltzer market dominate shelves. With cannabis legalization spreading, marijuana has permanently entered the chat as well.
Non-alcoholic options are also gaining ground, especially after a 2023 World Health Organization report found that “no level of alcohol consumption is safe.” Many sources later revealed the study was driven by anti-alcohol groups pushing an abstinence agenda. Despite that addendum, the effects of reduced foot traffic and sales continue to be felt.
Here at home, the turbulent tariff rollout is also painful.
“We’re particularly hurt by Canada,” said Dr. Konstantin Frank Winery vice president Meaghan Frank of the northern neighbor’s retaliatory ban on U.S. wine. Frank is the fourth generation to run the family winery positioned on the steep slopes of Keuka Lake.
Though she speaks fondly of the multi-generational relationship her family has fostered with their Canadian distributor, it currently can’t translate to sales.
“It means that all of the momentum built is lost right now,” said Frank. “Everything is in limbo.”
The uncertainty impacts more than just exports — the cost to make wine evolves by the minute.
“Even the barrel companies won’t give us invoices until they are docked on U.S. soil,” she said. “How can we make any plans?”
As a result, many local producers are weathering the tariff costs themselves rather than transferring the cost to consumers.
“Our prices are set, and we can’t raise them from one day to the next,” said Frank. “(The tariffs) are negatively impacting small businesses in a way many people don’t realize.”
Layer on an unsteady labor force that is hard to maintain in a seasonal industry, and it’s a recipe for disaster — or change.
Two sides to every story
In the same SVB report, executive vice president and founder of Silicon Valley Bank’s wine division Rob McMillan wrote, “The wine industry is undergoing a significant reset, marking the first demand-based correction in three decades.”
Beer and spirits are feeling the pinch, too. Local breweries and distilleries are closing alongside wineries. Some owners are reaching retirement age, and all are thinking about how they want to spend their next years. The economic decline can feel like a natural exit point. And as the economy continues to flatten, so will the industry.
“Let’s face it, you don’t need wine,” said Matt Yaeger, co-owner of Pinnacle Wine & Liquor in Brighton. “It’s an easy line item in your budget to remove.”
Yaeger is well-versed in the ebbs and flows of consumerism; his family has been selling wine and spirits for decades. He is also adept at finding the silver linings.
“It’s hard, but two things can be true,” he said. “We can have part of the business that’s declining, and part of it that’s growing.”
Yaeger highlights the influx of new producers taking over existing properties, or crafting something small of their own. He mentioned groups like Wineries Without Walls (a collective of micro-producers without brick-and-mortar tasting rooms) as an exciting addition to the region. Different faces are breathing new life into the Finger Lakes. Perhaps the reset is needed — Yaeger, for example, sees this as the perfect time to introduce his customers to new makers.
“People want to drink less but drink better,” he said. “Instead of three $15 bottles during the week, they’re choosing one or two special bottles in the $30–$50 range. Those are typically wines that we’re really proud to talk about: paying a fair wage and farmed sustainably.”
Wines like those crafted by husband and wife team Ria D’Aversa and Mike Penn of Ria’s Wines. Their property is the former Bagley’s Poplar Ridge Vineyards, which they purchased in 2024. News of the sale received much speculation on social media.
“Perhaps we don’t know everyone’s story,” D’Aversa said. “[The Bagley family] did a great job at our property, and they were ready to move on. To have the ability to choose something new is really cool.”
She and Penn did the same, moving to New York from Napa Valley where they met and started their first line of wines while also working full-time. Opening Ria’s was their opportunity to jump in feet first. In almost two years, they’ve done a lot, but the goal is a regenerative agriculture certification by 2028.
“We removed herbicides and reduced the chemical outputs by half,” said D’Aversa. “The vineyard looks wild right now, but that’s on purpose because we’re just exploring the habitat and biodiversity of our land.”
Yaeger is encouraged by the evolution of the industry — a sentiment echoed by “Wine Enthusiast,” which in October named the Finger Lakes the 2025 American Wine Region of the Year, as part of the magazine’s annual Wine Star Awards.
“We’re living in an incubator of creativity and potential,” he said.
Obstacle or opportunity?
Though the path forward may seem unclear, the importance of wine is not. It is more than an alcoholic beverage — it is a snapshot of a moment in time, captured in a bottle.
“When everything feels so digital and disconnected, wine remains something deeply human and rooted in tradition,” said Yaeger.
Like the pressurized winegrowing process, D’Aversa is optimistic the stress felt currently will produce an even more exceptional industry.
“I feel like we can weather it,” she said.
In the SVP study, McMillan suggests revised marketing plans to attract new consumers. Dr. Frank Winery, along with a few other savvy Finger Lakes wineries, currently offers four tiers of tasting experiences designed for a wide range of visitors, alongside highly personalized tastings and larger ticketed events. The estate plans to expand these offerings in the coming years, a key strategy for staying relevant over the decades.
“Things are changing all the time with guest preferences and trends, so we try to change along with them,” said Frank. “We’ll never stop. It’s a constant evolution, but that’s what makes it fun.”
But while wineries can make all the changes in the world, without the continued support of guests, it is all for nothing. One of the best ways to support these small businesses directly is to take a day trip or plan a long weekend on one of the lakes. Don’t have the time or budget for that? Visit Yaeger and his knowledgeable team at Pinnacle and let them help you find your next special (Finger Lakes) wine, then share it with a friend.
