They've extracted all the value by pricing each link in the chain to where things will basically barely break even.

I'm kinda a California wine nerd. I've toured a bunch of vineyards and wineries, including some legendary vineyards where a particular row was known to produce award winning grapes bottled by another. But whether you own the land and lease out a particular parcel or row, grow/harvest them yourself and sell the fruit, process the fruit and sell the juice, ferment the juice and sell to blenders, or blend/bottle it yourself and sell as finished product, each link in the chain is basically impossible to find excess value anymore. It's all efficiently priced, which means that there aren't too many cheap hidden gems anymore, and any fruit capable of creating good product basically commands exactly the right price for the landowner to barely break even on their mortgage (or the opportunity cost of selling the land to another).

The drop in mid-range demand basically has destroyed the economic viability of the California wine industry. The big splashy names are still doing great, and the global conglomerates can pump out huge volumes of inoffensive wine, but it's gotten really difficult for independent winemakers to produce good $10-40 wine and sell them at volumes that will pay the bills.