California Wine Industry Faces Decline, Farmers Explore Agave Cultivation
Grape farmers are increasingly turning to agave production to diversify and counter declining consumer demand in the state's oversaturated wine market.
California's wine industry is experiencing a significant downturn, prompting grape farmers to explore new crops like agave. Declining consumer demand and market saturation have led some farmers to pivot towards cultivating agave, the succulent plant used to produce spirits such as tequila and mezcal, as a means to ensure business viability.
Agave is known for its resilience in arid climates, requiring minimal water and labor compared to grape cultivation for spirits. This makes it an attractive alternative for farmers seeking to adapt to changing market conditions and environmental challenges. Joy Merrilees, a grape farmer and vice president of operations at Shannon Family of Wines, has begun transitioning to agave production on her farm. She noted that agave's suitability for her farm's volcanic soil and its lower water requirements were key factors in the decision.
Merrilees and her husband have planted agave across half an acre, with plans for their agave spirit, High Chaparral Agave Spirit, to be ready for consumption in two to three years. "I think being creative and getting innovative is really important for farmers to, kind of, stay in the black," Merrilees told The Sacramento Bee. Her farm also includes a 35-acre vineyard.
Merrilees is among approximately 100 other agave growers in California, according to a UC Davis 2025 Agave Survey. The crop is planted across 38 of the state's 58 counties, with a notable increase in acreage in Fresno County. Despite only seven dedicated agave spirit producers currently operating in the state, interest from grape farmers is substantial.
Ken Richter, vineyard manager for Brutocao Family Vineyards, is also considering a shift to agave production. He described the grape growing, winemaking, and bottling business as facing an "unsure market." Richter has been with the company for 30 years and is exploring alternative crops. "That’s why I’m like ‘What can we grow?’ …There’s a little bit of buzz going around agave," he told The Sacramento Bee.
While Richter plans further research before committing to agave cultivation, he expressed concerns about the longevity of the trend. "That is going to be everybody’s fear," Richter said. "It is an unsure market, that’s for sure."