Getting Smarter

A year or so ago, I was talking with a colleague who’s an executive at a premium wine brand that had downsized its operations. He was in charge of making the cuts. He felt for the people who’d been separated from the company and acknowledged the pain of having to find another job. And he recognized the anxiety for the remaining employees—himself included—who would be taking on more responsibility and wondering what (or who) was next.

If there was a silver lining to the situation, he said, it was that he’d never felt smarter. In the process of finding ways to keep the company competitive and profitable, he’d been reading a lot and having lots of conversations, exploring new ideas and getting feedback.

I guess it’s easy to make money when you have money, I joked. Exactly, he said—you have to think harder and be a lot more creative when your margins get squeezed.

It seems we’re all getting smarter right now.

I don’t say that to be flippant. Much of what’s happening in the grape and wine industry seems incredible—and not in a good way. The arc of industry challenges started coming into focus a few years ago, as businesses began consolidating, cutting back and, for some, closing. And now the impact of federal actions are sinking in as tariffs take effect and government funding and staffing are scaled back.

Some reports say 16,000 of the roughly 100,000 people employed by USDA departed the agency this month, having accepted voluntary separation packages. Of that number, 16% served the Research, Education and Economics mission area, which includes the Agricultural Research Service, National Institute of Food and Agriculture, Economic Research Service and National Agricultural Statistics Service, which collectively deliver scientific solutions to stakeholder challenges. More are expected to follow as USDA’s reduction in force rolls out, seeking to cut staffing by an estimated 30,000. Meanwhile, USDA grant programs remain offline, putting research at academic institutions in jeopardy, too.

How will the grape and wine industry continue to thrive and drive the innovations we need to advance grapegrowing, winemaking and processing into an uncertain future? Conversations have started and strategies are taking shape. We’ve got our thinking caps on—and we’re getting smarter every day. If you have ideas, we’d love to hear from you.

Donnell Brown
President

This column appeared in the April 2025 NGRA newsletter. Read the whole issue here: https://graperesearch.org/newsletter/