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Oregon Wine Industry: Innovation Key to Facing Declining Demand

Oregon Wine Industry at a Crossroads: Innovation and Collaboration Key to Future Success

PORTLAND, Ore. – Oregon’s wine industry is facing a period of significant challenge and change, prompting leaders to urge producers to embrace innovation and collaboration to navigate declining demand and evolving consumer preferences. The call to action came during the Oregon Wine Symposium, held in Portland on February 3 and 4, where over 1,200 grape growers, winemakers and business professionals gathered to discuss the future of the industry.

The symposium opened with a symbolic nod to the need for transformation, featuring The Beatles’ “Revolution,” setting the stage for discussions centered on adapting to new realities. A central theme was the need to rethink traditional approaches as the industry grapples with a softening market and increasing health concerns surrounding alcohol consumption.

Herb Quady, president of Quady North Winery and Barrel 42 Custom Crush Winery in Southern Oregon’s Applegate Valley, emphasized that innovation must extend beyond simply introducing new grape varietals. He suggested exploring options like fruit-flavored wines and alternative packaging, including reusable bottles and boxed wines, to broaden appeal. “You can expand your reach by creating something new and different as long as you do it well,” Quady reportedly told attendees, highlighting Oregon’s strong reputation for quality and sustainability as a foundation for experimentation.

Eugenia Keegan, senior vice president of Oregon winegrowing and business development at Jackson Family Wines, agreed on the necessity of adaptation but expressed reservations about non-alcoholic wines, citing potential quality concerns. However, both Keegan and Quady identified a growing opportunity in the market for lower-alcohol wines, which are gaining traction with consumers seeking lighter options. Keegan noted that while Jackson Family Wines will continue to prioritize its core offerings – Pinot noir, Chardonnay, and Cabernet sauvignon – these traditional wines may not resonate as strongly with younger generations.

Beyond product innovation, industry leaders stressed the importance of strategic business adjustments. Gary Mortensen, president of Stoller Wine Group in Dayton, Oregon, encouraged wineries to re-evaluate their tasting room fees and increase marketing budgets to better connect with customers. Mortensen underscored the importance of a clear brand identity, stating, “If you’re not sure who you are, it’s harder to tell your authentic story.”

A call for unified action was also prominent, with Mortensen advocating for a coordinated national response from the wine industry to address public health concerns related to alcohol consumption. He urged Oregon wineries to focus on increasing their market share relative to California producers through collaboration rather than internal competition.

Keegan highlighted the critical role of strong relationships, both with customers and within the industry itself, emphasizing that building these connections requires time and consistent effort but is essential for long-term success.

Despite the challenges – including shifting consumer preferences and increased scrutiny of alcohol’s health effects – speakers at the symposium expressed optimism about the future of Oregon wine. The annual event, organized by the Oregon Wine Board and the Oregon Winegrowers Association, continues to serve as a vital platform for collaboration and forward-thinking strategies for wine professionals across the state.

The industry also faces external pressures, including trade disputes and tariffs. According to reports, Canada implemented a wine import ban that impacted some Oregon wineries, with one winemaker, Jarad Hadi of Grape Ink Winery, learning of the ban while preparing a shipment. While Canada has softened some retaliatory tariffs, provincial bans on U.S. Wine and spirits remain in place, creating uncertainty for exporters.

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