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.
USA
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UK Exporters Face Fresh Uncertainty After Proposed US Tariff Change
Harpers reports that, after the US Supreme Court struck down Trump’s earlier tariff regime, the president announced plans for a 15% global tariff rate, a move that could raise duties on some UK drinks exports to the US. The article highlights analysis suggesting UK exports could see an average tariff rise of 2.1%, and includes comments from WineGB’s chief executive warning that higher costs would ultimately be borne by consumers, potentially slowing strong recent export growth for English and Welsh wine.
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Retailers Push Supreme Court Review of Arizona Wine Shipping Restrictions
Wine Industry Advisor reports that the US Supreme Court is set to consider a petition in Day v Henry, a challenge to Arizona’s restrictions affecting shipments from out of state wine retailers, and that the National Association of Wine Retailers has filed an amicus brief urging the Court to take the case. The release argues the federal appeals courts are split on how to assess these laws under the Twenty First Amendment, and says the outcome could clarify whether states can justify discriminatory retailer shipping limits by calling them part of the three tier system without evidence.
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Gallo To Close Napa Facility, Cutting 93 Jobs Across Wine Country Sites
CBS San Francisco reports that Gallo plans to permanently close its Ranch Winery in St Helena and reduce staff at four other winery and tasting room locations in Napa and Sonoma counties, totalling 93 job losses. The report says the planned changes were disclosed in a WARN notice filed with California, with layoffs expected to take effect in mid April, and it attributes the decision to shifting market dynamics, evolving consumer demand, and available capacity across Gallo’s wineries.
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California Growers Poised to Pull Another 40,000 Vineyard Acres
Farm Progress reports that California is on pace to remove another 40,000 acres of vineyards this year as growers respond to a structural oversupply of grapes. The article attributes the estimate to Allied Grape Growers president Jeff Bitter, and says a further 40,000 acres would take statewide vineyard area to about 473,000 acres, bringing supply closer to balance at current shipment rates. It also notes recent pullouts alongside new plantings, and references unsold fruit in 2025, with the broader industry debate focused on whether the market is nearing stabilisation.
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California’s Oversupply Persists, Even as Grape Shortage Talk Grows
Wine-Searcher reports from the Unified Wine and Grape Symposium that California is still awash with unsold wine, even as analysts debate whether a grape shortage could emerge by summer 2026. It describes a wager between SVB wine executive Rob McMillan and bw166’s Jon Moramarco, set against an industry backdrop where no one expects sales to rebound in 2026 and many expect stress, consolidation, and closures before a broader recovery.
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US Direct-to-Consumer Wine Prices Jump as Volume Falls
The San Francisco Chronicle reports that the average price of a bottle shipped direct-to-consumer in the US rose 11% in 2025 to $56.78, up from $50.53 in 2024, while shipment volume fell 15%. It says the rise is being driven less by wineries putting prices up, and more by value-conscious buyers dropping out, especially in wines under $15, which fell sharply year on year.