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About half of California’s wine grape crop entered the 2026 harvest season without buyer contracts, according to Allied Grape Growers. Falling wine sales and low grape prices are leaving growers to harvest at a loss, leave fruit unpicked or remove vineyards; the full impact on this year’s crop remains unclear.
Many California grape growers entered the 2026 harvest season without buyers for their fruit as declining wine sales pushed down grape prices, according to Allied Grape Growers. The squeeze is prompting some farmers to leave healthy grapes unpicked or remove vineyards, threatening farm income and work for local crews.
About half of this year’s wine grape crop began harvest without contracts, said Jeff Bitter, president of Allied Grape Growers, which represents about 500 farmers statewide. In a typical year, he said, 70% to 80% of the crop would have contracts. Growers may be able to sell some uncontracted grapes at a loss to processors making concentrated syrup, but Bitter said the market remains depressed even after vineyards have been removed or taken out of production.
Third-generation grower Bill Berryhill said he cannot find buyers for grapes from 200 of the 500 acres he farms near Lodi. He expects another year of losses and plans to remove 50 acres of vineyards after harvest. Berryhill said he has faced losses for three years and must decide how much of this year’s fruit to pick or leave in the field.
The effects reach beyond vineyard owners, said Kyle Collins, an operations manager with Allied Grape Growers in Lodi. When fruit goes unsold, he said, farmworkers and nearby businesses also lose income. The report does not quantify those local losses or say how many workers are affected.
Falling Sales Reach Farm Towns
The grape glut turns a drop in consumer demand into an immediate decision for growers: spend money to harvest fruit that may not sell, accept a loss, or leave the crop on the vine. Berryhill’s planned vineyard removal shows how the downturn can reshape land that families have farmed for generations.
Reduced production also affects people who depend on vineyard work and spending by farms. Collins described a trickle effect on field labor and the local economy. The source gives no statewide estimate of resulting job or business losses, so the scale of that impact is not yet established.
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From Pandemic Peak to Surplus
California produces more than 80% of U.S. wine, with premium regions such as Napa and Sonoma alongside large grape-growing areas in the Central Valley. Demand rose during the pandemic, when restaurant closures and limits on social gatherings led people to buy more wine for home. Sales peaked in 2021, according to the report.
Since then, U.S. wine sales have fallen. First Citizens Bank’s annual State of the Wine Industry Report says case sales dropped 23%, from 427 million cases in 2020 to 329 million in 2025. Total spending fell 22%, from $94 billion to $74 billion, over the same period. The report says growers have taken roughly a quarter of California’s vineyard acreage out of production compared with the pandemic-era peak of nearly 600,000 acres; that figure includes land removed or no longer actively growing wine grapes.
Bitter cited falling demand at home and abroad, as well as higher U.S. production costs, as obstacles to selling excess wine overseas. The International Organization of Vine and Wine reported global consumption fell 2.7% in 2025 from 2024 and 14% from 2018. The source also points to younger adults drinking less, aging baby boomers, health and financial concerns, and competition from beer, spirits, canned cocktails and cannabis.
““You raise a beautiful crop, and it’s really a nice vintage this year, and you drop it on the ground. It’s sad. All your work is just down the toilet.””
— Bill Berryhill, third-generation grower
How Much Fruit Goes Unpicked
It is not yet clear how much of California’s 2026 grape crop will ultimately be harvested, sold at a loss, processed into concentrate or left in vineyards. The report gives no final harvest total, statewide revenue estimate or count of growers who will remove vines after the season.
The overall trend is clear in the cited sales figures, but the source does not quantify how much each factor—changing drinking habits, competition from other drinks, production costs or global demand—is contributing to the decline. It also does not establish whether vineyard removals will bring supply into line with demand.
Growers Face Postharvest Choices
Berryhill plans to remove 50 acres after this year’s harvest, while growers across the state must decide whether to pick fruit without a buyer and whether to keep or replace their vineyards. Some farmers are considering other crops, including almonds, walnuts, pistachios and olives, according to the report.
The next clear measure of the downturn will be how much fruit is harvested and sold, and how much vineyard acreage growers take out of production. Wine sales are expected to fall further this year, the report says, but it does not provide a forecast for the size or timing of future vineyard removals.
Key Questions
Why are California grape growers struggling to sell their crop?
Wine sales have declined while growers continue to face excess supply. The report also cites changing drinking habits, competition from other drinks, and higher U.S. production costs as pressures on the industry.
How many grapes entered the 2026 harvest without contracts?
About half of California’s wine grape crop entered the harvest season without buyer contracts, Jeff Bitter of Allied Grape Growers said. He put the typical contracted share at 70% to 80%.
What are growers doing with grapes they cannot sell?
Some may sell at a loss to processors making concentrated syrup. Others face the choice of harvesting at a loss or leaving grapes unpicked. Some growers are also removing vineyards or considering other crops.
How much have U.S. wine sales fallen?
First Citizens Bank reported that U.S. wine case sales fell 23%, from 427 million cases in 2020 to 329 million in 2025. Total wine spending fell 22%, from $94 billion to $74 billion over that period.
Source: hn
