Wine and Wine Grapes

Wine grape updates

Wine grape harvest is coming on early with below average yields.

The wine market remains under pressure as U.S. wine sales declined year over year approximately 3.0% by value and 4.7% by volume through late mid-July, driven by weak demand and excess inventories. Industry participants increasingly focused on whether the market is approaching a bottom, with some reporting improved inventory movement and stronger performance in categories such as Sauvignon Blanc, aromatic whites, sparkling wine, and premium wines. Consolidation and restructuring remained key themes during the month, highlighted by portfolio acquisitions, distributor realignments, and continued efforts by wineries to reduce costs, improve profitability, and adapt to a smaller market.

Wine grape harvest is underway across the West Coast, with California experiencing one of its earliest harvests in decades and the Columbia Valley running about a week ahead of its long-term average. While crop quality appears favorable, yields are generally coming in below average after spring weather disrupted fruit set during bloom. Combined with recent vineyard removals and lower-input vineyard management, the 2026 crop is estimated to be smaller than recent years. Given ongoing oversupply concerns, many view the lighter harvest as a step toward rebalancing the market, though industry participants generally expect it could take a year or more before supply and demand return to a more sustainable balance. Overall, wildfire activity appears to have had minimal impact on grape quality, though some smoke impact has been observed in the North Coast region of California.

Profitability

Wine demand continues to soften and pressure the industry, particularly in the lower- to mid-range segments.  

Weak demand and excess bulk wine inventories continue to pressure wine grape producers.