The San Francisco Chronicle reports that a long predicted wave of California winery closures and lay-offs is now landing, hitting both boutique producers and major groups as the industry confronts too much capacity for shrinking demand. The article says some large operators are consolidating production for efficiency, while smaller wineries that skipped making wine in 2025 are liquidating stock, and it frames the downturn as a forced reset where vineyard owners rethink what to plant, how to farm, and what consumers will actually buy, after US wine sales fell by about 2% by volume in 2025.