CALIFORNIA, CA — California’s wine industry is facing a cascade of economic and market pressures, leading even long-standing labels and industry giants like Gallo to shut down production.
U.S. wine revenue fell by more than a billion in 2025, and production dropped by about six million cases, according to industry data.
Consumer preferences point to one factor. A little more than half of respondents in a recent Gallup survey said they consume alcohol, the lowest percentage since 1939, when the polling organization started asking the question, according to Western Farm Press.
But, while consumer drinking habits have dominated headlines, industry experts also cite trade barriers, overproduction, over-expansion of luxury wineries, grower contract requirements, marketing, and a drop in wine country tourism.
The industry is showing signs of a pick-up in 2026, but the casualties of the current wine industry reset include these wineries and their suppliers:
Carneros Hill Winery
Jackson Family Wines stopped production at its Carneros Hill site in Sonoma’s Carneros region on in February, with 13 layoffs.
Ranch Winery
Wine giant Gallo shuttered the Ranch Winery earlier this month, slashing nearly 100 jobs in Napa and Sonoma counties. Gallo filed a Worker Adjustment and Retraining Notification (WARN) notice with California authorities, confirming that the closing of the Ranch Winery in St. Helena will be permanent.
Valley Farm Management
After 51 years, the family-owned vineyard in Soledad, Valley Farm Management, closed in late 2025.
The owner of the winery, Jason Smith, a second generation grower told KSBW News the decision was very difficult because “it’s emotional, it’s a family business.” But at the same time, he said, “if you just purely look at the numbers, it was a pretty easy decision.” Bottom line, he said, “…we have more grapes than we have demand for wine bottles.”
Arista Winery
Arista Winery, a beloved label that helped define Sonoma County’s Pinot Noir renaissance, sold its Healdsburg estate and announced it will cease winemaking, citing a business decision based on a shifting industry.
Subject to Change Wine Company
One of the largest producers of natural wine in the country, Subject to Change Wine Company announced in January that operations would winding down, and the winery plans to cease production amid weak demand for the wines and rising costs, according to reports.
Mission Bell Winery
Constellation Brands, one of the largest wine corporations in Madera County, announced layoffs at its Mission Bell Winery in Madera, after a contract with Gallo expired. The company, a major employer in the county, announced they were cutting 200 jobs by early April and that the layoffs would be permanent.
Chateau Buena Vista & JCB Tasting Salon
Jean-Charles Boisset, the French vintner behind some of wine country’s ostentatious tasting rooms, closed two high-profile Napa Valley locations — Chateau Buena Vista in downtown Napa and the JCB Tasting Salon in Yountville — pulling back after years of rapid expansion and experimentation with luxury hospitality.
The Estate at Yountville
With wine comes hospitality in Wine County. Boardwalk Property Services, LLC, laid off 66 workers in November at The Estate at Yountville that includes two luxury hotels, an on-site spa, 11 indoor-outdoor event spaces, a vineyard, and an upscale shopping center, and art gallery.
Newton Vineyard
More than a year after this Napa Valley legend closed, Newton Vineyard is under new ownership. The new operators, Nick Livanos and Eric Bryan Seuthe, bought Newton from mega luxury brand company Moet Hennessy Louis Vuitton (LVMH). The pair said they want to return the “extraordinary estate to its former glory and celebrate the timeless connection between people, place, and the wines that bring them together.”
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