California Wineries Face Closures, Falling Demand, and Fire Threats
Despite a strong 2025 grape harvest, California’s wine industry is struggling under mounting economic and environmental pressures.
“We’re producing world-class fruit that no one wants to buy.” — Jeff Bitter, Allied Grape Growers
Family-Owned Vineyards Closing After Decades
In a year when grape quality is exceptional, a growing number of family-owned vineyards are shutting down across California.
In Monterey County, Valley Farm Management is harvesting its final crop after nearly 50 years in business. Just south in Soledad, another vineyard closed its doors this summer after five decades, citing a loss of market demand and uncompetitive pricing.
These closures come as California grape growers face a brutal reality: over 100,000 tons of grapes may go unharvested in 2025 for the second year in a row.
The Economics: Too Much Wine, Not Enough Buyers
Industry experts say the core issue is supply and demand.
Bulk wine inventory is up 60% year over year, but many tanks sit unsold.
Wine imports rose 17% through June, putting additional pressure on domestic producers.
Even Chardonnay, long a California staple, is selling below production cost—or not selling at all.
Jeff Bitter, president of Allied Grape Growers, warns that unless drastic cuts are made, the market will remain imbalanced:
“We need a crop below 2.5 million tons this year to reset the supply chain.”
What’s Next for California Wine?
Many growers are pulling vines, fallowing land, or shifting to more resilient crops. Experts suggest that if California wine is to remain viable, the industry must:
Reduce overall grape production
Adapt to changing consumer tastes
Move to Natural Wine Production.
Mitigate wildfire risk
Develop new markets
