California Wineries Turn to Burning Vineyards Amid Sales Slump
Declining sales, driven by changing consumer habits and a shift toward trendy beverages, have led some California wineries to destroy their crops.
Many California wineries are resorting to burning their vineyards due to critically low sales margins, a trend exacerbated by shifting consumer preferences and a focus on healthy living. Valley Farm Management CEO Jason Smith recounted setting fire to one of his pinot vineyards after deciding to sell his land and close his business of 51 years. "There's literally no way for me to make money," Smith told The New York Times.
Winemakers in California, a state renowned for viticulture, produced less wine last year than at any point in the last 25 years. In some cases, it has become more economical to let grapes rot on the vine rather than harvest them. Smith, who took over Valley Farm Management from his father, Rich Smith, a pioneer in the Monterey County Vintners and Growers Association, announced his decision to cease operations in the fall of 2025. "We've gone from 3,000 acres of grapes to just 160," he said, adding that by January 1, 2026, that acreage would be zero.
The decision stemmed from the escalating costs of farming coupled with a persistent decline in the grape market. "I kept looking at the numbers and trying to make them pencil out, but the fact I had so little collateral to go to the bank with for a loan on my up-front farming costs, just wasn't viable," Smith explained.
Smith described experiencing significant grief over closing his father's business but believed it was the most practical choice. He noted that on the day he burned his vineyard, he saw a neighboring property also removing its grapevines. Nationwide, wine sales have reached their lowest point in over two decades.
Industry analysts attribute the downturn to several factors, including public health warnings and a shift in preferences among younger drinkers who increasingly favor canned cocktails, spiked seltzers, and spirits. Owners of bars and liquor stores in California have also observed a growing demand for non-alcoholic options and speculate that the popularity of cannabis may have impacted wine sales. The slump has particularly affected red wines, with 2025 marking the first time in decades that California produced less red wine than white wine.
According to the California Association of Winegrape Growers, approximately 800,000 tons of grapes went unpicked statewide in 2025, with only about 7% of planted grapes harvested. Smith sold his vineyard to Jackson Family Wines, which owns numerous California wine labels, and is selling off his equipment. He hopes to fully close his business within the next few months, facing the prospect of starting a new career after dedicating his life to grape farming.
