California Winery Lists 3,500 Acres for Sale Amidst Industry Downturn and Trade Tensions

McManis Family Vineyards, a 36-year-old family-owned winery, is putting its 11 vineyards totaling 3,500 acres on the market, with an asking price of $22 million. The decision comes as the business faces a significant downturn in its export market, particularly to Canada, and reflects broader challenges impacting the California wine industry.

The sale includes vineyards across San Joaquin and Sacramento counties, with individual properties ranging in price from $800,000 to $14 million. Ron McManis, president and co-owner, described the decision as "very hard" for his family.

Historically, Canadian provinces represented a substantial portion of McManis Family Vineyards' export sales, accounting for approximately 40% of that business. This market share largely disappeared after Canadian provinces enacted bans on American alcohol imports in response to tariffs imposed by the Trump administration on Canadian goods.

The winery's difficulties are emblematic of wider struggles within the California wine sector. Factors contributing to the industry's challenges include declining alcohol consumption, rising operational costs, and excess inventory. This has led to a wave of bankruptcies and closures.

Other major players in the industry are also facing difficulties. In June, Modesto-based E. & J. Gallo Winery, one of the nation's largest winemakers, announced plans to close a San Joaquin crush facility and lay off 20 employees. Last month, Jason Smith, CEO of Valley Farm Management, reported selling his land and burning vineyards, stating that it was no longer economically viable to maintain them.

Overall alcohol consumption in the United States has seen a notable decline. A Gallup poll from October 2025 indicated that 54% of American adults reported drinking alcohol, the lowest percentage recorded since the poll began tracking in 1939. This trend is attributed to increasing health consciousness among Americans and a shift in preferences among younger generations, with drinkers like Gen Z increasingly opting for alternatives such as hard seltzer.