After two large harvests America’s demand for wine continues to increase – growing 3.3% annually for the last decade. With Napa Valley and Sonoma County fully planted, there is a search for vineyards in California – but issues surrounding water are proving to be limiting with industry insiders seeing state control of groundwater within the next few years. Paso Robles has seen its water level decrease by 70 feet and residents are dealing with their wells running dry. In the city of Cambria a law has been passed making it illegal to use water for anything other than human consumption. If water is used for any other means more than three times, the city turns off the offender’s water. Lenders are looking closely at water rights and water supply before lending to new vineyards. With water constraints holding back the California wine industry it leaves an opening for foreign wines to gain market share in the U.S. There are estimates that up to 50% of the U.S. market will be from imports before the end of the decade.
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