Wine and Wine Grapes

Wine grape updates

Wine grape crops are coming in smaller than average with good quality.

The U.S. wine market remained under pressure in July as sales volumes declined across retail, wholesale, and Direct-to-Consumer (DtC) channels. Excess inventories and falling demand continue to weigh on the industry. Reports suggest major producers are reducing capacity, distributors are adjusting portfolios, and many wineries are prioritizing profitability, inventory management, customer retention, and production discipline over volume growth.

Wine grape crops across the West are developing early and appear to be smaller than average with generally good quality. Reports of disease pressures are minimal, though powdery mildew has impacted a number of growers in Southern Oregon. While harvest in Oregon and Washington is about a week or two early, parts of California are four to eight weeks ahead of schedule. An early harvest is not expected to have a material impact on the crop or markets. Demand for white varieties appears to be better than reds. While wildfire activity in Oregon and Washington is immense, it is located far enough from the primary growing regions that smoke taint risk remains relatively low in most areas. (Excessive smoke exposure to grapes can negatively impact flavor profile.) The Fire Insurance Protection – Smoke Index (FIPSI), a crop insurance program made available in the West in 2026, is already providing support to several growers experiencing a sufficient number of Smoke Events (the occurrence of heavy smoke density in a county during a 24-hour interval).

Profitability

Wine demand continues to soften and pressure the industry, particularly in the lower- to mid-range segments.

Weak demand and excess bulk wine inventories continue to pressure wine grape producers.