More wineries across California are being squeezed by shifting consumer drinking habits, forcing closures or planned shutdowns at well-known properties such as Carneros Hill Winery and Ranch Winery.
The broader California wine industry has been upended as younger adults show less interest in wine, while Baby Boomers — long the backbone of wine sales — scale back overall consumption. U.S. wine revenue dropped by more than $1 billion in 2025, with production declining by roughly six million cases, according to industry data.
Here are some of the latest casualties in a consumer climate that has grown increasingly challenging for wineries and their vineyard suppliers.
Carneros Hill Winery
Jackson Family Wines halted production at its Carneros Hill facility in Carneros on Feb. 12.
The shutdown led to 13 layoffs.
Ranch Winery
Wine giant E. & J. Gallo Winery closed Ranch Winery earlier this month, cutting nearly 100 jobs across Napa County and Sonoma County.
Gallo filed a WARN notice with the California Employment Development Department on Feb. 12, confirming it will permanently shutter the Ranch Winery facility in St. Helena.
Frei Ranch Winery
An aerial view shows E. & J. Gallo Winery’s Frei Ranch winery and vineyards in California struggling amid ongoing drought conditions.
Valley Farm Management
Valley Farm Management, a family-operated vineyard in Soledad, closed after 51 years at the end of 2025.
Owner Jason Smith told KSBW that the decision was “pretty easy” given a changing wine industry and an oversupply of grapes compared with demand for wine bottles.
Arista Winery
Arista Winery, based in Healdsburg, announced its closure last month, citing industry shifts.
The winery sold its estate last year to Chris Underwood, CEO of Young’s Holdings, Inc., but continued selling its brand until closing.
Arista Winery
The iconic iron gates of Arista Winery mark its location in the Russian River AVA wine region.
Subject to Change Wine Company
Subject to Change Wine Company, a Northern California winery that once produced 20,000 cases of wine annually, announced its closure last month. At its peak, its wines were distributed across 35 states and 15 countries.
The company’s struggles intensified in March 2025 when owner Alex Pomerantz began laying off staff and faced difficulty making payroll for remaining employees due to declining sales and mounting debt.
Subject to Change Wine Company
Subject to Change Wine Company, which once produced 20,000 cases of wine annually, announced its closure last month.
Mission Bell Winery
Mission Bell Winery in Madera will permanently close on March 31, resulting in over 200 layoffs.
The winery had been a staple in Madera for more than 100 years.
Newton Vineyard
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Newton Vineyard
Newton Vineyard, shown with its outdoor patio and vineyard backdrop, closed in February of last year.
There may be hope for the struggling California wine industry, however, as new owners Nick Livanos and Eric Bryan Seuthe revived the winery in September 2025.
The duo purchased Newton Vineyard from luxury conglomerate Moët Hennessy Louis Vuitton (LVMH).
