⏱ 2 min read
The Short Version
Passaggio Wines is shuttering its tasting room after a staggering 40% decline in traffic, a casualty of a market where mocktails and canned cocktails are cannibalizing wine's dominance. As club memberships vanish, even seasoned producers are struggling to survive this seismic shift in consumer habits.
Cindy Cosco is closing the doors on a twenty-year career. After two decades in the business, Passaggio Wines will shutter its tasting room at Jack London Village at the end of October. The decision follows a steady decline in sales and revenue losses stemming from patrons canceling their wine club memberships. The numbers just don’t work.
The numbers just don’t work.
A Changing Beverage Landscape
Passaggio’s struggle mirrors a wider instability currently gripping California wineries. Cosco noted her tasting room experienced a 40% decline over the last few years. This shift isn’t isolated; recent months have seen high-profile operational changes across the state, including bankruptcy filings from Gundlach Bundschu and significant layoffs at Gallo and Constellation Brands’ Mission Bell Winery. While large corporations like Constellation are pivoting toward expanding beer businesses, smaller producers like Passaggio are feeling the direct impact of diminishing demand.
Cosco’s journey began in San Francisco in the mid-2000s, where she worked as a lab manager in 2007 before establishing Passaggio with just 50 cases of her flagship wine. She eventually moved operations to Sonoma in 2014, but even after growing to an annual production of 1,700 cases, the current market has proven unforgiving. Market data suggests the squeeze is coming from both ends of the spectrum. According to the International Organisation of Vine and Wine, U.S. consumption fell 4.3% last year, driven by younger drinkers opting for a wider selection of alcoholic beverages. For Cosco, the competition includes mocktails and canned cocktails—trends that have left wine “diluted on the shelf.”
Economic Pressures and Industry Adaptation
Beyond shifting tastes, macro-economic factors continue to disrupt traditional supply chains. The Wine Institute reported that California wine exports to Canada plummeted by 78% in 2025, representing a $357-million loss in export value. These trade disruptions, combined with falling domestic interest, create a precarious environment for wineries that rely on consistent tasting room traffic and club subscriptions.
Passaggio stopped production last year before making the final decision to close its physical location. As Cosco looks toward retirement, she maintains that survival requires a total evolution. To compete with new products on the market, the industry must fundamentally change how it operates.
Do you think the decline in wine consumption is a permanent shift in culture, or just a temporary fluctuation in preference?
Questions & Answers
Why is Passaggio Wines closing its tasting room?
Passaggio Wines is closing its tasting room due to a steady decline in sales and revenue losses caused by patrons canceling their wine club memberships. Owner Cindy Cosco noted that the financial numbers no longer work for the business after two decades of operation. This decline in revenue follows a period where the tasting room experienced a 40% drop in traffic over the last few years, making the physical location unsustainable for the company.
What factors are contributing to the decline in wine consumption?
Shifting consumer preferences toward a wider variety of alcoholic beverages is a primary driver of declining wine consumption. Younger drinkers are increasingly opting for alternatives like mocktails and canned cocktails rather than traditional wine. This change in habits is reflected in recent market data from the International Organisation of Vine and Wine, which shows that U.S. wine consumption fell by 4.3% last year as the market becomes more diluted by these new beverage trends.
How are economic pressures affecting California wine exports?
Economic pressures and trade disruptions have caused a massive drop in California wine exports to Canada. Recent data from the Wine Institute indicates that these exports plummeted by 78% in 2025, resulting in a $357-million loss in export value. These significant trade disruptions, combined with falling domestic interest, create a precarious financial environment for wineries that depend on consistent international sales and steady tasting room traffic to remain profitable.
What challenges are small wineries facing compared to large corporations?
Small wineries face direct impacts from diminishing demand and shifting markets that large corporations can often navigate through diversification. While major companies like Constellation are pivoting toward expanding their beer businesses to offset losses, smaller producers like Passaggio Wines struggle with falling wine club subscriptions and reduced tasting room traffic. These smaller operations often lack the resources to absorb the economic pressures and changing beverage landscapes that are currently reshaping the entire industry.
Originally reported by Los Angeles Times.
