Wine consumption in the U.S. has been declining in recent years. While the baby boomer generation drove wine consumption for decades, millennials and Gen Z are not following that trend.
Portland-based Blue Lobster Urban Winery closed its Anderson Street tasting room late last month.
The winery announced in November that it would shift its focus to its wholesale presence and will outsource the production.
"After eight years of pouring, building, worrying, celebrating and quietly showing up every day, this space is coming to a close," said the Jan. 30 social media post. "I’ve always stayed behind the scenes, but today felt like the right moment to step forward and say thank you — truly."
Partner Jason Kroot said in a social media post that the company will be partnering with another local winery to keep production "rolling and leaning fully into the parts of the business that are growing the fastest."
The winery produces wines and ciders packaged in cans.
After seven years at 219 Anderson St., the winery moved to a larger location (the former Urban Farm Fermentory tasting room), at 200 Anderson St. The move allowed for expanded production, a larger tasting room, more parking and outdoor seating.
Wineries in transition
As the Food Insider reported last week, Sweetgrass Winery & Distillery in Union has permanently closed following a fire last September that destroyed the production facility and tasting room.
The 20-year-old business, known for fruit wines and spirits, has ceased operations. Owner Keith Bodine indicated that the firm’s Back River Gin brand will continue to be produced, but under contract with Mossy Ledge Distillery in Etna.
In Gouldsboro, owners of Maine’s oldest winery, Bartlett Maine Estate Winery, which became known in the 1980s for its vino made from wild blueberries, said they plan to retire and are seeking a buyer.
People drinking less wine
Wine consumption in the U.S. has been declining in recent years.
While baby boomers drove wine consumption for decades, millennials and Gen Z consumers are not following that trend.
Rising prices, health concerns and lifestyle changes have driven the changes. Younger consumers are also switching to ready-to-drink cocktails, hard seltzers and craft beer.
According to Wine Options, a wine market research firm, its latest survey finds that wine drinkers
— especially younger generations — are drinking less frequently than they did a year or two ago, contributing to an almost 8% drop in wine sales in 2024.
The research found that rising prices and concerns about value are major reasons the target age group is drinking less wine.
Nearly half, or 47%, cited higher prices for the wines they prefer as a reason for cutting back.
Other published reports suggest that, in some cases, younger consumers are instead spending more on high-quality, premium products.
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