FRESNO, Calif. (FOX26) — California’s wine industry is facing a downturn in sales and grape production, and wineries in the Central Valley are adapting to stay afloat.

Industry reports say winemakers across the state produced less wine last year than at any point in the last quarter century.

Fresno County grows about 20% of California’s wine grapes.

At Engelmann Cellars in Fresno County, owner Bret Engelman said the industry’s recent struggles began since COVID.

Engelman, who grew up on his grandfather’s raisin farms, said his early exposure to agriculture shaped his interest in the work.

“At eight, ten years old, your dad’s teaching you what’s going on. And it was just interesting, you know, not that we cared about the wine. It was just interesting,” he said.

Engelman has been making wine for almost 30 years.

According to data from the California Association of Wine Grape Growers, about 38,000 acres of wine grapes were pulled out across California last year, about 7% of all grapes statewide.

Engelman said he’s hearing concerns across the industry.

“I hear the rumblings about downsizing, price cuts, everything else and it’s scary,” he said.

He also said winemakers are seeing people lean away from drinking as much, creating a situation where there is a lot of product but not as much demand.

Vineyards have also been severely affected by wildfires.

To adjust, Engelmann Cellars has expanded beyond wine, hosting live music and movie nights and selling beer.

“We had to diversify a little bit because not everybody’s a wine drinker,” Engelman said.

The winery has also leaned into events and entertainment to bring people in.

“You start doing weddings out there and then one day there’s a concert out there, and then you go, hey, there’s something to be said with these concerts. So the next thing you know, you’re a music venue and on the Friday nights we have food trucks out here and a bunch of people,” he said.

Engelman grows all of his own grapes, reducing reliance on outside supplies.

The winery offers reds, whites, rose and beer.

Despite the uncertainty, Engelman said he believes the industry will stabilize.

“There’ll be a balance to this. They will find a balance. I don’t know how long this balance is going to take, but it’s going to get found,” he said.

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