U.S. Wine Grapes, Sales Face Pressure as Growers Pull Vines

Wine growers and producers are contending with weak demand and higher operating pressures, The Food Institute reports, citing industry experts. The Associated Press reported that wine sales have fallen more than 20% over five years and that some growers are removing vines because they cannot sell their grapes.

California’s vineyard area and harvest have contracted. Jeff Bitter, president of Allied Grape Growers, said acreage has declined markedly since the pandemic. USDA figures cited in the report put California acreage in production at 510,000 in 2025, down from 590,000. The state produces more than 80% of U.S. wine, and its 2025 grape crush of 2.6 million tons was the lowest since 1999.

Some growers are planning further cuts. Bill Berryhill, a third-generation grower near Lodi, told the AP he expects to remove vines from 10% of his acreage after three years of losses. In Sonoma County, the Los Angeles Times reported that Gundlach Bundschu, founded in 1858, filed for Chapter 11 protection after failing to reach a restructuring agreement with lenders. The report also noted layoffs announced earlier this year by Gallo and Constellation Brands.

The pressure extends beyond the United States. France’s 2026 wine output is expected to reach about 35 million hectoliters, 14% below its five-year average and near a 70-year low, Bloomberg reported, following a summer of heat waves. Amati & Associates partner Filiberto Amati told The Food Institute that lower demand across alcoholic beverages coincides with climate-related production challenges and geopolitical shocks affecting transport and packaging costs.

Experts cited in the report also pointed to competition from non-alcoholic and functional beverages, as well as THC- and CBD-infused drinks. Rincon Wine Group owner Daniel Berman said younger consumers may be constrained by limited disposable income and the cost of wine. He described current conditions as a correction after decades of industry growth.