California’s wine country is feeling the squeeze — and fast. At least five wineries have suddenly closed or scaled back operations in 2025, a sign that the Golden State’s once-booming wine business is facing real trouble.
One of the biggest shocks came from Twomey, part of the famous Silver Oak Cellars wine family, which abruptly closed its Calistoga and Anderson Valley (Philo) tasting rooms early in the year. Loyal customers were caught off guard, as both locations had been staples for years.
Around the same time, Newton Vineyard announced the shutdown of its entire operations, largely due to the aftereffects of the 2020 Glass Fire.
In San Francisco in the summer, August West Wines—the city’s last large-scale winery—has also shut down its city operation, ending an era of urban winemaking in the Bay Area. In addition to its namesake, it made Sandler and Mansfield-Dunne wines.
Down the coast in September, wine giant E&J Gallo announced the permanent closure of its Courtside Cellars facility in San Miguel, putting 47 people out of work.
And then throughout the year, the Bronco Wine Company, the brand behind Trader Joe’s “Two Buck Chuck”, laid off 81 workers in at its Stanislaus County winery and 146 at its Ceres winery on Bystrum Road.
It’s not just a few isolated cases. Experts say these closures point to a bigger crisis across California’s wine country:
- Too much supply, not enough buyers. Wineries are producing more wine than Americans are drinking.
- Younger consumers are walking away from wine, choosing cocktails, hard seltzers, and nonalcoholic options instead.
- Rising costs for water, land, and labor are squeezing producers from all sides.
- Wildfires and drought continue to threaten vineyards and drive up insurance costs.
Even big names aren’t immune. Vintage Wine Estates, owner of several well-known labels, filed for bankruptcy in 2024 and has been selling off properties ever since.
Industry insiders warn that more closures could be coming, especially among small, family-run wineries that can’t keep up with falling prices and thinning profit margins.
California still produces about 80% of all U.S. wine, but 2025 is shaping up to be one of the toughest years the industry has faced in decades. If this trend continues, the landscape of California wine country — from Napa to Paso Robles — could look very different in the years ahead.
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