Even though consumption of wine among American drinkers is down 10 percent from a decade ago, profitability for wine makers is increasing slightly, according to Bob Smiley, dean of the Graduate School of Management at UC Davis and wine economist. Some of Smiley's recent observations on the wine industry are: imports from Australia, Brazil and Chile are up dramatically because they can be produced at a lower cost than wines made in the United States; there is a consumer shift toward purchasing larger containers for wine because of convenience and price; and Generation X appears to be avoiding wine in favor of the microbrewery beers. In addition, the wine industry has shrunk its advertising in major media markets -- as much as 80 percent in the last 10 years. As California wineries have reached maturity, the industry has become fragmented and oversupplied.