The U.S. wine industry has faced an economic downturn since the Covid pandemic, which can be called the Great Wine Decline.
Wine industry volume declined to 329 million cases produced in 2025, compared to 335.9 million cases in 2024.
The sector’s revenue also declined in 2025 to $74.3 billion, compared to $75.5 billion in 2024, according to Silicon Valley Bank’s State of the US Wine Industry Report.
Revenue declines 21% since 2020
The industry’s annual revenue has declined by $19.7 billion, or 21%, since generating $94 billion in 2020, the report said.
Experts have identified the problem as Baby Boomers drinking less wine. They also say younger generations, such as Gen Z, have been slow to embrace 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 Wine Industry Report, wrote.
The list of major wine companies closing wineries and tasting rooms this year reads like a “Who’s Who” for the winery business.
Major companies close wineries
E. & J. Gallo, the largest wine company in the U.S., is permanently closing its Ranch Winery in St. Helena, Calif., and laying off all 56 employees by April 15, 2026, according to a Worker Adjustment and Retraining Notification notice it filed with the California Employment Development Department on Feb. 12.
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.
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 by April 17, 2026, according to a Worker Adjustment and Retraining Notification notice filed with the California Employment Development Department.
And now, economic distress has hit another Golden State winery.
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Aloria Vineyards files for bankruptcy
30-year-old California winery Aloria Vineyards filed for Chapter 11 bankruptcy to reorganize its business and continue operating as a going concern.
The Vallecito, Calif.-based winery, which also operates a tasting room in Murphys, Calif., in the Sierra foothills, filed its petition in the U.S. Bankruptcy Court for the Eastern District of California in Fresno on Feb. 24, listing $100,000 to $500,000 in assets and liabilities, according to Omni Agent Solutions.
The winery did not reveal a specific reason for filing for bankruptcy protection.
Aloria Vineyards will remain open during its restructuring and is still taking tasting room reservations immediately, according to its website.
Certified California Sustainable Vineyard
The winery has 52 acres of vineyards on a 120-acre site in the Sierra foothills, which were certified as a California Sustainable Vineyard in 2019, according to its website.
The winery was originally known as Canterbury Vineyards when it was first established. It had also been known as Renner Vineyard, operated by Renner Winery.
More bankruptcies:
- 73-year-old family diner franchisee files Chapter 11 bankruptcy
- More troubled regional airlines file for Chapter 11 bankruptcy
- Major department store brand liquidates in Chapter 11 bankruptcy
Aloria Vineyards offers tours and tastings Fridays through Mondays and wine and food parings at the Vallecito facility Thursdays through Mondays.
The winery offers a Loyalty Program, Wine Club, and hosts weddings and other special events at its Vineyard Quarry Event Space in Angels Camp, Calif.
Related: Costco shares bold expansion and growth plans
Aloria Vineyards wine:
- Chardonnay
- Syrah
- Cabernet Sauvignon Rosé
- Zinfandel
- Zinfandel Rosé
- Malbec
- Barbera
- Barbera Rosé
- Albarino
- Sauvignon Blanc
- Verdejo
- Grenache Rosé
- Petite Sirah
- Source:Aloria Vineyards
Related: Favorite U.S. wine brand closes down, no bankruptcy
