Wine Spectator: California’s Wine Crisis—Too Many Grapes

The California wine industry is in the doldrums as it faces three challenges at once: consumer spending on wine is declining, inventory is backed up in the sales pipeline, and there’s a glut of grapes and bulk wine left over from the 2024 harvest. The last hazard, the oversupply of grapes, poses an immediate threat. Many growers, even in top regions like Napa, are struggling to sell their fruit. Experts estimate tens of thousands of acres of vines will need to be pulled up to fight the oversupply.

The writing has been on the wall for wine in recent years, although many in the industry paid little heed. Wine consumption in the United States began decreasing in 2021. Last year, sales volume dipped 2.8% to 319.2 million 9-liter cases, a more than 9-million-case decline, according to Impact Databank.

Bidding wars for Napa Cabernet were common in the previous three years, reaching as much as $10,000 a ton for valley floor and up to $20,000 a ton in prime appellations such as Oakville and Howell Mountain. “And this year, I know of fruit that is going to be left on the vine in those AVAs that was selling for $15,000 to $20,000 a ton last year,” said Christian Klier, North Coast grape broker for Turrentine Brokerage.

Glenn Proctor of Ciatti Company, a global wine and grape broker, estimates that between 30,000 and 40,000 acres of vines have been removed in the past year, much of it in Central Valley regions like Lodi. “I think we’re going to continue to see more acres removed,” he said.

Turrentine predicts the market will begin to recover in 2026 as supply and demand comes into equilibrium. Meanwhile, consumers may start seeing some real deals as producers lower prices to reduce inventory and take other cost-cutting actions. “An oversupply situation means there’s going to be a lot of affordable wine—high quality wine—out there for the consumer,” Klier said. Wine Spectator has the full story.

Tagged : Ciatti Company, Turrentine Brokerage, Wine Spectator

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