In what could possibly be referred to as the Nice Wine Decline, the wine trade has suffered a 21% lower in income from the Covid-19 pandemic in 2020 by 2025, which has led to a surge in vineyard closings.
The wine sector’s complete income fell by $19.7 billion over the six-year interval, or from $94 billion in 2020 to $74.3 billion in 2025, in line with Silicon Valley Financial institution’s State of the U.S. Wine Business Report.
Business consultants blame a decline in consumption by its high demographic, Child Boomers, for the slowdown in wine gross sales.
Kenwood Vineyards proprietor Pernod Ricard Kenwood Holding LLC closed its 56-year-old vineyard and bought its belongings to F. Korbel & Bros.Shutterstock · Shutterstock
The newest closure was a significant California vineyard, Kenwood Vineyards, which closed its operations on March 27, in line with its web site, with no estimated date for resuming its enterprise.
“Kenwood Vineyards is closed till additional discover. Verify again in April for updates,” a message on the web site acknowledged.
The Kenwood, Calif., vineyard’s proprietor, Pernod Ricard Kenwood Holding LLC, filed a Employee Adjustment and Retraining Notification letter with the California Employment Growth Division on March 23, asserting that it will completely shut the enterprise by March 31 and lay off all 14 workers by that date.
The Sonoma Valley-based vineyard will probably reopen below new possession, as Pernod Ricard bought the 33-acre Kenwood Vineyards for $4 million to Kenwood Vineyard Land LLC, which is led by Gary Heck, proprietor of F. Korbel & Bros., the producer of Korbel California Champagne and Brandy, the Press Democrat reported.
F. Korbel returns as proprietor of Kenwood Vineyards after promoting the vineyard to Pernod Ricard in Could 2014 for below $100 million. The true property alone was valued at $7.2 million, in line with county data on the time.
Korbel bought half possession in Kenwood Vineyards 30 years in the past and took full possession in 1999. The vineyard’s manufacturing grew from about 300,000 circumstances yearly to about half 1,000,000 when Pernod Ricard bought it in 2014, in line with the Press Democrat.
Kenwood Vineyards was Pernod Ricard’s first Sonoma County buy as a part of a U.S. growth in 2014, but it surely was additionally its final wine holding earlier than the current sale, as the corporate has shifted its focus to spirits.
Earlier than promoting the Kenwood vineyard, Pernod Ricard bought its Mumm Napa label in December to Napa Valley-based Trinchero Household Wine & Spirits.
Two different main California wineries additionally introduced facility closings and filed WARN notices earlier than Kenwood Vineyards’ closing.
E. & J. Gallo, the most important wine firm within the U.S., is completely closing its Ranch Vineyard in St. Helena, Calif., and shedding all 56 workers by April 15, 2026, in line with a Employee Adjustment and Retraining Notification (WARN) discover it filed with the California Employment Growth Division on Feb. 12.
Gallo may even lay off 37 different workers by April 15 at 4 of its wine services, together with Louis M. Martini Vineyard and Orin Swift Tasting Room in St. Helena, Calif., and J Vineyards & Vineyard and Frei Ranch in Healdsburg, Calif., in line with WARN notices it filed.
Enormous wine firm, Jackson Household Wines, which makes 40 wine manufacturers, stated it’ll completely shut its Carneros Hills Vineyard in Sonoma, Calif., and lay off 13 employees by April 17, 2026, in line with a WARN discover filed with the California Employment Growth Division.
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This story was initially printed by TheStreet on Mar 29, 2026, the place it first appeared within the Retail part. Add TheStreet as a Most well-liked Supply by clicking right here.