California’s wine industry is facing another difficult harvest season, with many growers preparing to leave large quantities of grapes unpicked for the second year in a row. Along Highway 29 in Napa Valley, fields that once held thriving vineyards now sit empty, marked by piles of uprooted vines. This stark landscape reflects the ongoing challenges for California’s wine producers, who are contending with declining alcohol consumption and a persistent oversupply of both wine and grapes.
Industry data shows that alcohol consumption in the United States has reached its lowest point in 90 years. At the same time, California’s vineyards are producing more grapes than the market can absorb. As a result, tens of thousands of acres have been removed across the state. Despite favorable weather conditions this year, projections indicate that over 100,000 tons of grapes will be left to rot on the vine—mirroring last year’s losses.
Stuart Spencer, executive director of the Lodi Winegrape Commission, described the situation as a paradox. “This is some of the best-looking Zinfandel we’ve had in years,” he said. “I’m optimistic from a quality perspective, but the broader market conditions are driving everything down.” In 2024, California recorded its smallest wine grape harvest in two decades—a 23% drop from 2023—as growers struggled to find buyers. Many slashed prices by more than half just to recoup a portion of their costs. Estimates suggest that between 100,000 and 400,000 tons of grapes went unharvested last year, and up to 40,000 acres of vines were removed.
The outlook for 2025 is no better. Spencer estimates that Lodi alone has lost about 15% to 20% of its vineyard acreage in recent years. Jeff Bitter, president of Allied Grape Growers, expects another 35,000 to 40,000 acres will be pulled statewide this year. He also noted a new trend: many vineyards are simply being abandoned rather than replanted.
For some growers, these pressures have become insurmountable. Jason Smith, a second-generation grape grower in Monterey County, decided to close his family business after more than five decades. At its peak, Valley Farm Management farmed over 3,200 acres and employed 50 people. But as contracts dried up and prices fell below production costs, Smith realized he could not continue without risking bankruptcy. He plans to exit the industry entirely after this year’s harvest.
The crisis is not limited to regions like Lodi and Monterey County. Even Sonoma County and Napa Valley—long considered the heart of California wine—are feeling the effects. Karissa Kruse, president and CEO of Sonoma County Winegrowers, said about 10% of local vineyard acreage will be removed this year. Of those acres, around 2,000 are unlikely to be replanted due to permitting issues. The organization also projects that nearly one-third of Sonoma’s grapes will go uncontracted this season.
In Napa Valley, vineyard removals have increased since last harvest. Caleb Mosley, executive director of the Napa Valley Grapegrowers, said some owners are using this period to remove old or diseased vines—especially those affected by red blotch disease—to prevent further spread.
The grape market remains sluggish despite the high quality of this year’s crop. Natalie Collins, president of the California Association of Winegrape Growers, reported little movement for uncontracted grapes—even popular varieties like Chardonnay are struggling to find buyers. Listings for grapes and bulk wine sales have reached record highs on industry websites.
Some growers hoped that tariffs on European wines would help domestic producers by narrowing the price gap with imported bulk wine. However, Collins said current tariffs are not high enough to make a significant difference; bulk wine imports were up 17% through June compared to last year.
International trade disputes have also played a role in shaping market conditions. Canada recently agreed to lift its retaliatory tariff on U.S. wine—a move that could open new export opportunities if Canadian provinces allow American wines back on store shelves.
Wildfires remain an unpredictable factor for growers each year. The August Pickett Fire damaged about 1,500 acres in Napa County—over 3% of local vineyard land—with many producers reporting fire or smoke damage. The full impact of other recent fires is still being assessed.
Despite these challenges, industry leaders say that only a significant reduction in grape production will restore balance to the market. Jeff Bitter believes that a harvest below 2.5 million tons may be necessary before supply matches demand again.
As California’s wine country enters another uncertain harvest season, growers across the state are making difficult decisions about their future in an industry facing historic headwinds.
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