California wine slump leaves half‑million tons of grapes unpicked, threatens vineyards

A severe downturn in the California wine market has left more than 500,000 tons of grapes unharvested, prompting growers to abandon vines and shut down operations. In Monterey County, Valley Farm Management CEO Jason Smith watched workers cut down a 51‑year‑old Pinot Noir vineyard and sell the land after concluding the business could no longer be profitable. Industry data show that about 38,000 acres – roughly 7% of the state’s plantings – were removed in 2025, and the oversupply of wine has driven many wineries to cut back production or switch to white varieties such as fiano and Grüner Veltliner.

The slump reflects shifting consumer preferences toward canned cocktails, seltzers and non‑alcoholic drinks, as well as a perception that wine is expensive or intimidating. The fallout extends beyond winemakers to farm communities, seasonal labor, and related businesses, with layoffs and land sales reshaping the region’s agricultural landscape.