California’s wine country is in crisis. Over the past five years, wine sales have dropped more than 20%, pushing grape prices down and leaving many growers with unsold fruit. The downturn has forced roughly a quarter of the state’s vineyards to sit idle.
Local growers feel the pain
Third‑generation farmer Bill Berryhill, who runs Berryhill Family Vineyards near Lodi in the San Joaquin Valley, says he cannot find buyers for grapes on 200 of his 500 acres. He plans to remove 50 acres of vines after harvest, acknowledging that the season will likely end in a loss.
“It’s just sickening,” Berryhill, 68, said while standing among unsold Merlot grapes. “You raise a beautiful crop, it’s a nice vintage, and you drop it on the ground. All your work is just down the toilet.”
Industry-wide contraction
Jeff Bitter, president of Allied Grape Growers, notes that at the pandemic’s peak California boasted nearly 600,000 acres of vineyards. Today, growers have taken roughly 25% of that land out of production. This year, about half of the state’s wine grape crop entered harvest without contracts, compared with the usual 70‑80% that are pre‑sold.
When contracts are missing, growers sometimes sell grapes at a loss to buyers who turn them into concentrated syrup, but the market remains depressed.
Broader economic impact
Operations manager Kyle Collins, also with Allied Grape Growers, says the lack of buyers hurts not only vineyards but also local laborers and related businesses. “That’s not getting into the pockets of the people doing the field labor, the farmworkers,” he explained.
The ripple effect reaches beyond agriculture. Reduced vineyard activity means fewer jobs and less money flowing into surrounding communities.
Changing consumer tastes
Analysts point to shifting drinking habits as a key driver. Baby boomers are aging out of the market, while younger consumers are drinking less alcohol due to health and financial concerns. Wine now competes with craft beer, hard liquor, canned cocktails, and even cannabis.
“The kids just aren’t drinking as much,” Berryhill observed. “It’s not just wine, it’s whiskey and beer and everything. And then you’ve also got the competition with all the seltzers.”
Export challenges and tariffs
Tariffs have also hurt California’s ability to export excess inventory, especially to Canada, once the largest foreign buyer of American wine. Global wine consumption fell 2.7% in 2025, with sharp declines in Europe and China, according to the International Organization of Vine and Wine.
Looking ahead
Rob McMillan, chief wine strategist at First Citizens Bank, says the industry hopes the market will bottom out soon. Growers like Berryhill remain determined to stay in the business, citing family heritage and a love for viticulture.
“I love growing grapes. It’s in the blood,” Berryhill said. “Because I love them, I can weather this and I’ll fight through it.”
Original reporting: 2news.com — read the source article.
