After 2 decades worth of steady growth, the California wine industry has been on a decline. And, for the past year and a half, the price of wine has been dropping. There are a few reasons for the drop in prices, but the most obvious is the surplus of grapes. In the past year alone, the surplus of grapes in California is up almost 160-percent meaning the price per ton has greatly dropped. Based on the median values, over the past 18 months grapes have been offered at prices well below the market average.
