California wineries face falling exports, weak demand and vineyard sales

McManis Family Vineyards, a family-run producer founded in 1990, is on the market for $77.95 million. Its exports to Canada dropped from 75,000 cases to 1,000 cases between July 2025 and July 2026, according to figures the Sacramento Bee reported and SFGATE cited. McManis declined SFGATE’s request for an interview.

The Wine Institute, which represents California wineries, estimated that the Canadian ban on U.S. wines cost producers $357 million in 2025, with losses continuing this year. UC Davis agricultural economist Daniel Sumner told SFGATE that trade barriers and higher input costs are adding to the strain.

The report describes pressure across winery sizes and regions, with oversupply meeting declining consumption. Alcohol-industry data specialist Jon Maramarco attributed part of the longer-term demand challenge to aging core wine drinkers and difficulty attracting younger consumers. A San Luis Obispo County real estate agent cited in the article also pointed to rising labor and inflation costs, alongside production projections based on stronger past sales.

Some vineyard and winery properties are being marketed at prices that the agent said compare favorably with the cost of establishing new vineyards. He estimated planting costs, including wells and irrigation, at $30,000 to $50,000 per acre. That pricing may draw buyers, but the report also notes recent closures and layoffs in the Paso Robles area.