The California wine industry is facing significant challenges as changing consumer habits lead to declining demand and the closure of several iconic wineries. Younger generations are less interested in wine, and Baby Boomers are drinking less overall, resulting in a drop in U.S. wine revenue by over a billion dollars in 2025 and a production decrease of about six million cases.
Recent closures and planned shutdowns include:
- Carneros Hill Winery(Sonoma’s Carneros region): Jackson Family Wines ceased production in February 2026, resulting in 13 layoffs.
- Ranch Winery(St. Helena, Napa and Sonoma counties): Gallo permanently closed the facility in February 2026, cutting nearly 100 jobs.
- Valley Farm Management(Soledad vineyard): Closed at the end of 2025 after 51 years due to oversupply and decreased demand.
- Arista Winery(Healdsburg, Sonoma): Announced closure in early 2026 following a sale of its estate in 2025.
- Subject to Change Wine Company(Northern California): Closed in early 2026 after financial struggles and layoffs beginning in March 2025; once produced 20,000 cases annually with wide distribution.
- Mission Bell Winery(Madera): Will close March 31, 2026, ending over 100 years of operation and resulting in more than 200 layoffs.
- Newton Vineyard: Closed in February 2025 but was restarted in September 2025 by new owners Nick Livanos and Eric Bryan Seuthe after being sold by LVMH.
The closures reflect broader industry turmoil as wineries and vineyard suppliers confront shifting market dynamics and changing consumer preferences. Some new ownership and reboots, like Newton Vineyard, may offer hope for stabilization or revival in the future.
