By ERIC ASIMOV
Published: July 28, 2009
THE California wine industry encompasses many with little in common. It includes small grape growers and brokers, family producers, ngociants, big corporations, major distributors and many different types of retail outlets.
Still, as diverse as this group is, one word seems to sum up the effect of the recession on their businesses: brutal.
The reason is simple. Wine is a cash-flow business, and all along the pipeline, from farm to production to sales, cash is not flowing. Growers are behind on sales of grapes, which are fetching much lower prices than last year. Sales are sluggish for wines retailing at $15 a bottle and higher. Meanwhile, distributors, restaurants and retail shops are reluctant to buy more wine, preferring to sell through what they already have.
Cash may be trickling, but anxiety is gushing forth.
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. . . . . . Pete