The wine industry has faced an economic downturn dating back to the Covid-19 pandemic, which has been accelerating in the first two months of 2026, with several wineries and tasting room closings.

Industry experts have blamed a decline in consumption from the Baby Boomer generation for the decrease in sales and volume.

Boomers drink less wine

“Boomers are drinking less, and there are fewer of them every day,” wrote Rob McMillan, executive vice president and founder of the Silicon Valley Bank Wine Division.

“They are replaced by the younger cohorts who aren’t as much in love with wine as their elders,” McMillan, author of Silicon Valley Bank’s State of the US Wine Industry Report, wrote. “It should be noted that this current flock of consumers under 30 drinks less than any similarly aged group, as far back as records go.”

Lower consumption has led to a decline in volume and revenue in the industry.

U.S. wine industry volume declined to 329 million cases produced in 2025, compared to 335.9 million cases in 2024.

Winery revenue declines in 2025

Wine industry revenue also declined in 2025 to $74.3 billion, compared to $75.5 billion in 2024, according to the Wine Industry Report.

The industry’s annual revenue has declined by $19.7 billion, or 21%, since generating $94 billion in 2020.

Industry financial distress has led to major winery facility closings in January and February. Those closings will be a disappointment to tourists on wine-tasting tours looking to try high-quality wines.

Vintner Jean Charles Boisset, who owns Chateau Buena Vista, closed tasting rooms in downtown Napa, Calif., and in Yountville, Calif., in January 2026, the San Francisco Chronicle reported.

Former NFL head coach Dick Vermeil also closed his Vermeil Wines tasting room in downtown Napa, Calif., on Jan. 31, the winery posted on Instagram.

Vermeil Wines said it needed to close the tasting room as it evolves with the rapidly changing wine market.

Jackson Family Wines is closing its Carneros Hills Winery in Sonoma, Calif.

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Jackson Family Wines closes winery

And now, iconic wine company Jackson Family Wines, which makes 40 wine brands, said it will permanently close its Carneros Hills Winery in Sonoma, Calif., and lay off 13 workers, according to a Worker Adjustment and Retraining Notification notice filed with the California Employment Development Department.

Jackson Family Wines, which also makes Kendall-Jackson wines, filed its WARN notice on Feb. 12, asserting that the facility will be closed and all employees will be laid off by April 17, 2026.

Winery not tied to specific brand

Carneros Hill served as “overflow production capacity and was not tied to any specific brand,” Jackson Family Wines director of communications Sean Carroll told the San Francisco Chronicle. The winery was underutilized, and its operations were consolidated.

Jackson Family’s California wineries include 15 in Sonoma County, 6 in Napa County, 3 in Mendocino County, 3 in Santa Barbara County, and one in Monterey, according to its website. It also has 4 wineries in Oregon.

The winemaker operates wineries overseas as well, including 3 in Australia, 2 in France, 2 in Italy, and one in South Africa.

Jackson Family’s 40 wineries produce 6 million cases of wine a year, Wine Business reported.

The Carneros Hill closure and layoffs coincide with E.& J. Gallo’s WARN filing on the same day, revealing that the company will permanently close its Ranch Winery in St. Helena, Calif., and lay off 56 employees by April 15, 2026.

More closings:

  • Bankrupt restaurant chains permanently close popular locations
  • Major retail chain closes 35 stores nationwide, no bankruptcy
  • Another major retail chain closes warehouse operations

Gallo also filed WARN notices to lay off 37 other employees by April 15 at four of its wine facilities, including Louis M. Martini Winery and Orin Swift Tasting Room in St. Helena, Calif., and J Vineyards & Winery and Frei Ranch in Healdsburg, Calif.

“Gallo is aligning parts of our operations with our long-term business strategy to ensure we remain well positioned for future success,” the company said in a statement reported by the San Francisco Chronicle.

Winery and tasting room closings

  • Chateau Buena Vista tasting room, Napa, Calif., January closing.
  • JCB Tasting Salon, Yountville, Calif., January closing.
  • Vermeil Wines Tasting Room, Napa, Calif., Jan. 31 closing.
  • Ranch Winery in St. Helena, Calif., April 15, 2026.
  • Carneros Hills Winery in Sonoma, Calif., April 17, 2026.

Related: Another beloved beer brand closes its brewery forever