finance
California vineyard values fall as wine industry faces oversupply
Vineyard land prices have declined in several California counties. Industry participants at a May 21 conference described fewer buyers and lower grape demand. Two speakers said the broader market contraction may continue into 2028.
May 27, 5:14 PM·1m read1 source
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Vineyard land prices have declined in several California counties, according to speakers at an AWG Wine Advisors conference held in Santa Rosa on May 21. A Sonoma-based agricultural land appraiser said sellers now outnumber buyers and described the situation as moving faster than appraisals can track.
Market conditions by county Values outside the high-end Anderson Valley section of Mendocino County have dropped, the appraiser stated. Lake County has also seen reduced demand after years of cabernet sauvignon plantings. Sonoma County prices are lower than previous levels when sales occur, and grape demand remains uncertain, the same appraiser said.
Industry outlook A managing director at BMO Capital Markets’ beverage alcohol team said younger consumers are turning away from wine and predicted the market will be about one-third smaller after the current correction. The same director stated the downturn is unlikely to produce a quick rebound and placed the start of any improvement in 2028.
Oversupply, distribution disruptions, and lower merger values were also cited as factors affecting the sector.
