The Journal.

California's Wine Industry Is in Crisis

90 snips
Dec 4, 2025
Laura Cooper, a dedicated reporter covering the heart of Sonoma County, shares firsthand insights into the acute crisis hitting California's wine industry. Joining her is John Belletto, a second-generation winegrower grappling with unsold grapes and devastating financial losses. They discuss how shifting consumer habits and economic pressures have led to a glut of grapes, prompting growers to rethink their strategies. The conversation explores the near-collapse of exports, the impact of tariffs, and the urgent need for innovative survival tactics in an evolving market.
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ANECDOTE

Sonoma Farmer's Personal Crisis

  • John Belletto describes planting grapes since 1995 and selling both bottled wine and grapes to other wineries.
  • He says this year is his worst in 25 years with many grapes unsold and up to 25% uncontracted going into 2025.
INSIGHT

Planting Lags Create Oversupply

  • The industry grew by forecasting using past demand because vines take years to mature, creating lagged overproduction.
  • Growers ramped plantings for a boom that already ended, producing a supply-demand imbalance.
INSIGHT

Demand Shift Driven By Culture And Health

  • Multiple cultural and market shifts reduced alcohol consumption including mocktails, health concerns, and Gen Z's lower alcohol uptake.
  • Consumers choose THC drinks or are pickier, shrinking traditional wine demand.
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