NW wine industry: worries and bargains. (Crosscut)

Indeed, most others in the wine business in Washington and Oregon report that it’s tough out there and likely to get tougher — particularly for new wineries, high-end producers without big reputations and scores, and those that depend heavily on the hard-hit restaurant business. Even giant Jackson Family Wines in California, the parent company of Kendall-Jackson, laid off about 20 percent of its staff in January.

Many wineries are trying to shift their distribution mix away from restaurants and toward retail. Most are carefully nurturing their wine club members, hoping the direct-to-consumer business provides an island of stability. Washington and Oregon wineries questioned are predicting that, at best, sales in 2009 will be about the same as last year. “You’ve got to be really skeptical in this environment that you’ll see any sizable growth in 2009,” says Mark Freund, senior relationship manager for Silicon Valley Bank in California, which works with about 250 West Coast wineries. “If you can maintain flat sales, you’re not doing too bad.”