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California Winemaker Cites Industry Crisis, Closes Doors
14 Feb
Summary
- A decade-old California natural wine pioneer is closing.
- Significant debt, including a tasting room loan, caused the closure.
- The winemaker spoke openly about the industry's ongoing crisis.
After a decade in Santa Cruz, Margins Wine, a pioneering winery in California's natural wine scene, will close its doors at the end of April 2024. Owner Megan Bell cited mounting debt, largely due to the financial strain of opening a tasting room, as the primary reason for the closure. Bell began contemplating winding down the business in the fall of 2024, recognizing the unsustainable financial burden.
Margins Wine, established in 2016, gained acclaim for its focus on marginal climates and less common grape varietals. Bell was an early and vocal proponent of natural winemaking in the Santa Cruz region. Despite critical success, Bell faced significant financial challenges, including the costly opening of a 120-square-foot tasting room in 2023, which incurred $134,000 in costs after a $95,000 loan.
Bell gained further recognition in the spring of 2024 for being among the first California winemakers to candidly discuss the industry's burgeoning crisis, attributed to declining alcohol consumption and grape oversupply. To avoid bankruptcy, she took herself off payroll and secured a day job, enabling her to repay creditors approximately $200,000. She is now focused on selling her remaining inventory, with fewer than three pallets left.
