The later-than-usual release of the Grape Crush Report had everyone doing what this industry does best: guessing. And when the number finally dropped, it landed somewhere between “not great” and “not nearly low enough to matter.” At approximately 2.6 million tons, the 2025 crush came in higher than most had hoped, and, more importantly, higher than many believe the market actually needs. The Facts: What the Crush Report Tells Us Data released by the California Department of Food and Agriculture shows that the 2025 grape crush totaled approximately 2.6 million tons. That represents a decline of just over 8% from the prior year and marks the smallest crop since the late 1990s. On the surface, that’s a meaningful shift. After several years where production consistently exceeded 3 million tons, supply is clearly beginning to respond. But the details matter. Key premium varieties such as Cabernet Sauvignon, Chardonnay, and Pinot Noir all declined, while certain

The 2026 State of the Industry session at Unified was cautiously optimistic but did delivered a clear message: the wine industry is not in a temporary downturn, it is undergoing a structural reset. We are deep into this adjustment but there is still work to be done. Declining consumption, excess supply, margin pressure, and changing consumer behavior are no longer emerging risks; they are now realities. They are now the operating reality. What made this year different was the alignment between market data, producer behavior, and financial results. The conclusions echoed the themes in the most recent SVB State of the Wine Industry Report: slower demand, elevated inventories, capital constraints, and the need for sharper business discipline. A Global Market Under Pressure As Mike Veseth, The Wine Economist, noted, wine is now a global commodity. Approximately 45% of all wine crosses at least one international border. While global trade continues to grow, overall consumption is