A few years ago, a bad harvest would have been a nightmare for winemakers in California’s Napa Valley. And 2026, when the number of grapes expected to be harvested could be almost 50% lower than last year due to heavy rains and heat waves early in the season, would be a worst-case scenario. So why are companies cheering the news in 2026?
As sales of alcohol drop throughout the country and tariffs have all but cut off some foreign markets, winemakers are cutting back, or, in some cases, going out of business. So having fewer crops to harvest and convert to wine can dramatically lower their expenses.
“It is a godsend,” said Michael Honig, president of Honig Vineyard & Winery, of the low-volume harvest. “The short crop is helping us survive right now.”
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The number of grapes vintners can pick this year will be 35% to 40% lighter than the average amount, according to Sonoma County Winegrowers. Growers who specialize in white wines had a better year than vineyards that focus on red.
Because sales have been depressed for the past few years, wine makers have an excess of stored wine on their premises right now. The crops of 2023 and 2024 were huge, resulting in a glut of unsold product, which still fills the companies’ warehouses.
Uprooting and burning vines as sales hit lows
The situation has become so dire in California that some growers in the region are uprooting or even burning their vines as wine sales hit their lowest level in over 20 years. Last year saw roughly 38,000 acres of wine grapes pulled out across the state, which represents roughly 7% of all grapes planted in California, according to data from the California Association of Winegrape Growers.
An estimated half million tons of grapes were never picked in 2025.
The wine industry saw an unprecedented cumulative contraction last year, with the largest one-year drop in volume on record. California alone saw a year over year shipment loss of $142 million, which represented 62% of the industry’s total value decline.
Tasting room traffic is down as well, and has been for several years. “Relying on people coming to the tasting room no longer works,” one winemaker told Silicon Valley Bank in its 2026 State of the U.S. Wine Industry report.
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Calling it quits
Some vineyards are already throwing in the towel, despite this year’s smaller crop.
McManis Family Vineyards, which has been a fixture in the California wine scene since 2001, has put its 3,500-acre property up for sale for a total price of $22.5 million. Other vineyards owned by McManis have been separated into several smaller parcels.
The Canadian boycott of U.S. wines has been especially painful for the industry. In 2025, Canadian bans cost the American wine industry $357 million, according to the Wine Institute. That total has increased over the course of 2026.
At the same time, younger Americans are drinking less than previous generations for several reasons, ranging from health and wellness to price. And when they do, they don’t often choose wine. Spirits and beer are regularly seen as more popular options.
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Chris Morris is a US based veteran journalist with more than 35 years of experience at many of the biggest digital news outlets. In addition to his activities as a writer, reporter and editor, Chris is also a frequent moderator and speaker at major conferences, including CES and South by Southwest.
