The biggest thing to happen to wine in the early 20th century was Prohibition, in the 1920's. While Prohibition made the sale or use of alcohol illegal, there were a few loopholes, which often led to hilarious business ventures. Wine was allowed to be grown for sacramental and "medicinal" purposes, and home wine making on a very small scale was also allowed. Some wineries were able to stay in business because of this. One of my favorite examples of this was called Chateau Le'chaim, a San Fransisco winery that supposedly provided wine to Jewish temples. In addition, many wineries would package grape must and ship it along with yeast tablets to home wine growers. Along with the package they would include a note that warned NOT to combine the yeast with the grapes, or else alcohol would be created!
Prohibition also had effects that lasted way past the 1920's. As a result of the poor quality of the wine being drank during that time, the American palate drifted away from wine. Most bathtub gin tasted a lot better than the wine people had access to, and cocktails became all the rage in the popular speakeasies. After prohibition was repealed, some states, such as Mississippi, chose to remain dry. Mississippi, in fact, didn't repeal prohibition until 1966! Those that did repeal the law started the arcane and confusing liquor laws that still exist today, designed to discourage liquor sales and consumption.
Wineries that had survived prohibition had many problems to deal with. Because of the decrease in revenue from low sales, wineries had fallen into disrepair. Their tanks and pumps had become rusty and infected with bacteria, and their barrels had started to rot. The great depression also had a devestating effect on the wine industry, as people could not afford to buy wine. A huge majority of the wineries went out of business in the first 4 years of the depression. Large Coporations, such as Seagram, Hiram, Walker, Schenley, and National, that had enough money to last through the downturn became the only source for wine through the 1940's.








