{"id":419480,"date":"2026-07-31T13:54:09","date_gmt":"2026-07-31T13:54:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/419480\/"},"modified":"2026-07-31T13:54:09","modified_gmt":"2026-07-31T13:54:09","slug":"california-winery-ceo-torches-vineyards-and-sells-off-land-as-industry-collapse-continues","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/419480\/","title":{"rendered":"California winery CEO torches vineyards and sells off land as industry collapse continues"},"content":{"rendered":"

California\u2019s wine industry has gotten so desperate<\/a> that one vineyard owner torched his own vines after deciding they were worth more as ashes than grapes.<\/p>\n

The Golden State\u2019s struggling wineries have faced mounting financial pressure for years, with conditions becoming so grim that California lawmakers recently appealed to Canada<\/a> to reopen its market to American wine.<\/p>\n

But while that international lifeline remains uncertain, a new report from The New York Times<\/a> is offering a look at just how bleak the situation has become.<\/p>\n

Jason Smith, CEO of Valley Farm Management, said he recently sold all of his land \u2014 then set fire to his vineyards because there was no longer any economic reason to keep them.<\/p>\n

The struggles of California wineries have been well-documented over the past few years, with the situation so dire that California lawmakers recently reached out to Canada to reopen their market for American wine. FarmersGov<\/p>\n

While it\u2019s unclear if that northern trade route will be open anytime soon, a new report from The New York Times reveals just how drastic things have gotten for winery owners. valleyfarmvineyards<\/p>\n

Jason Smith, the CEO of Valley Farm Management, revealed that he recently sold all of his land and literally set his vineyards on fire because of one harsh truth. FarmersGov<\/p>\n

\u201cThere\u2019s literally no way for me to make money,\u201d the 57-year-old Smith said.<\/p>\n

Wine sales have reached a low point not seen in over two decades, which is largely due to American\u2019s recent aversion to alcohol in general.<\/p>\n

An October 2025 Gallup poll<\/a> revealed that 54% of American adults consume alcohol, the lowest percentage since Gallup started tracking behavior since 1939.<\/p>\n

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California produces just over 80% of the nation\u2019s wine<\/a>, with the Golden State seeing a boom in pinot noir after the 2004 film \u201cSideways\u201d was released.<\/p>\n

Mark Williams, who founded the Arista Winery in 2002 and ran it until closing up shop in 2024, remembered the boom fondly.<\/p>\n

California produces just over 80% of the nation\u2019s wine, with the Golden State seeing a boom in pinot noir after the 2004 film \u201cSideways\u201d was released. FarmersGov<\/p>\n

\u201cYou could almost feel it. All people wanted was pinot noir,\u201d Williams said.<\/p>\n

Smith, whose company Valley Farm Management started from humble roots on the Monterey Coast in the 1970s, also said that his winery had its highest profits in the years after \u201cSideways\u201d was released, though he added that merlot sales dropped after Paul Giamatti\u2019s character bashed it in the film.<\/p>\n

Still, demand ultimately plummeted, to the point where pinot production dropped a whopping 30% since 2021, with Smith adding, \u201cWe were so pinot noir-centric. And then there just wasn\u2019t the demand.\u201d<\/p>\n

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Smith said that on the day he burned his vineyard, he saw a neighboring vineyard also pulling grapes up from the ground.<\/p>\n

He sold the primary vineyard to Jackson Family Wines, with other land parcels being sold to private equity companies and the equipment being sold off for cash.<\/p>\n

\u201cThis is all I\u2019ve done my whole life. I\u2019m going to have to find a new career,\u201d Smith said.<\/p>\n

\u201cThis is all I\u2019ve done my whole life. I\u2019m going to have to find a new career,\u201d Smith said. FarmersGov<\/p>\n

Wine experts are claiming that hundreds more wineries are expected to close in the next two years, which could be the death knell for the entire industry.<\/p>\n

\u201cIn our 54 years in the grape and wine business, we\u2019ve never seen the amount of change and turmoil and chaos that\u2019s going on right now,\u201d said Steve Lohr, president of J. Lohr Vineyards & Wines.<\/p>\n

Michael Meluskey, the general manager of the Santa Barbara winery Au Bon Climat, planned on reducing production due to hampered demand, though he remained confident his business will survive.<\/p>\n

\u201cPeople love wine, they love wine with food,\u201d he said. \u201cIt\u2019s like any business that goes through cycles.\u201d<\/p>\n

Meluskey\u2019s winemaker Marc Piro looked on the bright side, and joked, \u201cLuckily we won\u2019t have A.I. taking our jobs.\u201d<\/p>\n

The California Association of Winegrowers<\/a> revealed in late 2025 that production was the lowest in 30 years, with an estimated 800,000 tons of grapes that were not picked or sold.<\/p>\n

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