January 2025

California Vine Lines is a bimonthly publication of the California Association of Winegrape Growers (CAWG) to offer policymakers a snapshot of what is occurring in the grape-growing and wine industry. Please click on any of the links for more information about the issues highlighted below.

Back to Session Reception

Please join CAWG and the Agricultural Council of California for our 7th Annual Back to Session Reception. Enjoy a glass of fine California wine and light hors d’oeuvres to celebrate the New Year and the beginning of session!

The reception will take place on Wednesday, January 22 from 4:30-6:30 at the Senator Hotel Office Building, Suite 304 (1121 L Street).

2025 Awards of Excellence

At the Unified Wine and Grape Symposium on January 28, in Sacramento, the California Association of Winegrape Growers will honor the Miller Family as the 2025 Grower of the Year, and Randy Heinzen as the 2025 Leader of the Year.

CAWG is pleased to honor these recipients for their stewardship and steadfast support for the industry and efforts in sustainability and advocacy for the environment and our communities.

Please contact CAWG staff if you would like to tour the trade show floor during the Unified Wine and Grape Symposium.

CA Businesses Shouldering CA’s Debt via Higher Federal Taxes

As an industry, CA winegrape growers typically pay state UI taxes at the highest rate. But when CA failed to repay its $20 billion federal loan on time, this also substantially increased a grower's federal unemployment insurance taxes. FUTA taxes will grow annually over the next 10 years or more.

California is one of only two states (the other New York), that did not pay back the federal loan with the stimulus money it had received from the federal government. KCRA 3 reports, “As of now, each employer . . . will pay an extra $21 dollars per employee on their payroll taxes. In 2026, the extra amount will increase to $42, in 2027 to $63, and increase another $21 per employee every year until it's paid off.”

American Wine Industry in Eminent Danger?

Drive around the Central Valley or the north part of the Central Coast and you see the acres and acres of vineyards that were left unpicked after the 2024 harvest, the grape clusters left shriveling on the vine. It is shocking to see.

There are, simply, more grapes in the fields than are needed. Consequently, the winegrape industry is experiencing a correction in the market (ripping out tens of thousands of acres of grape vines).

Healthy & Responsible Wine Consumption

Moderate wine consumption is linked to a 38%-50% reduction in cardiovascular risks, according to a University of Barcelona-led study. However, excessive drinking eliminates these benefits, and more research is needed to confirm causality and explore mechanisms.

The study reports that drinking between half a glass of wine and a full glass of wine a day could help reduce the risk of heart problems. (See Alcohol & Cancer piece below.)

A lcohol and Cancer?

A new report from the U.S. surgeon general suggests that alcoholic drinks should come with cancer warning labels.

California already requires a Prop 65 cancer warning for alcohol. This is the same warning label that is sometimes found on bread, deodorants, school books, furniture, playground equipment, and entries to office buildings.

Looking at both the surgeon general’s recommendation and the study from the University of Barcelona, most experts generally conclude with a commonsense approach of moderation and responsible consumption.

About the California Association of Winegrape Growers (CAWG)

Founded in 1974, CAWG stands as the statewide advocate for winegrape growers, representing the interests of California's winegrape industry. Our mission is to foster collaboration and advocate for policies that ensure the continued success of this economically vital industry.

California Association of Winegrape Growers

1121 L Street, Suite 304 • Sacramento, CA 95814 • www.cawg.org

Michael Miiller, Director of Government Relations

michael@cawg.org • (916) 379-8995 or (916) 204-0485