The good news: wine consumption is growing in the US, especially for domestic wine. But things are being complicated by the fact that the California industry is facing increasingly tight supply. "Wine grape acreage has been fairly flat" over the past decade as "the profitability of growing wine grapes has been too low to attract additional acreage" for many growers, writes Stephen Rannekleiv in Rabobank's Wine Quarterly Report for the third quarter of 2011. For example, many growers in the San Joaquin Valley are planting crops like tree nuts rather than growing wine grapes.