California Winemakers Ripping Up Vineyards Amid Lowest Production Levels in a Quarter Century
In California, a region globally renowned for its viticulture, winemakers produced less wine last year than at any point in the last 25 years. Faced with simple economics where unsold bottles clog storerooms and wine shops, it has become cheaper to let grapes rot on the vine than to harvest them. In Soledad, California, 57-year-old Jason Smith watched as a worker used a tractor to rip out pinot noir grapes from the ground while another set fire to wooden support posts. Having decided to sell his land and shut down his family business after 51 years, Mr. Smith noted there is literally no way for him to make money.
National Wine Slump and the Rise and Fall of Pinot Noir
Nationwide wine sales have hit their lowest level in over two decades, driven by declining consumption amid health warnings linking alcohol to negative health outcomes. Younger drinkers have increasingly turned toward canned cocktails, seltzers, and nonalcoholic beers and spirits, finding traditional wines difficult to understand. In California—which accounts for approximately 80 percent of the nation’s wine production—pinot noir exemplifies this volatile market. Originally less popular than cabernet sauvignon or merlot, pinot noir experienced a massive boom following the release of the 2004 movie “Sideways,” leading growers across the state to plant the delicate grapes wherever possible before demand eventually plummeted.
Industry-Wide Pullouts and Changing Consumer Preferences
By 2025, approximately 38,000 acres of wine grapes were pulled out across California—representing about 7 percent of all statewide plantings—according to the California Association of Winegrape Growers, alongside over half a million tons of unpicked grapes. To pay off debts and avoid bankruptcy, Mr. Smith sold his trophy vineyard to Jackson Family Wines and other parcels to private equity companies while liquidating his equipment. The market contraction has particularly impacted red wines, leading to a milestone in 2025 when state winemakers produced less red wine than white wine for the first time in decades, while growers increasingly turned to lesser-known white varieties like fiano and grüner veltliner.
Future Industry Outlook and Shifting Bar Trends
As the fall grape harvest began, thousands of tons of grapes were expected to be left on the vine, with hundreds of additional wineries projected to close over the next two years before the industry bottoms out. Bar and bottle shop owners reported heightened demand for nonalcoholic options, chilled reds, orange wines, and unfussy whites that appeal to younger demographics, though many purveyors emphasize that the sales drop largely stems from affordability constraints surrounding luxury goods. Meanwhile, Mr. Smith prepares to completely close his family business in the coming months, acknowledging that despite spending his life in the vineyards and continuing to enjoy pinot noir, his personal favorite alcoholic drinks remain beer and whiskey.
