Shadows cast a spell across the vineyard at Narrow Gate winery near Placerville. (Image: Kathryn Reed)

Wine sales are down, people are drinking less, publicly traded companies are suspending dividends, vineyards and wineries are on the market, tariffs are impacting the export market, grapes are rotting on the vine, entire vineyards are being uprooted and wineries are shutting down.

This is the state of the California wine industry, which produces more than 80 percent of the wine sold in the United States.

El Dorado County wineries are still recovering from the 2020 pandemic, smoke taint and lack of visitors following the 2021 Caldor Fire, and a double frost in 2022 that ravaged the crop. After that spring Narrow Gate Vineyards had to rehabilitate 75 percent of  its vineyard.

In the first two months of this year four major California wine companies—Jackson Family Wines, Gallo, Foley Family Wines & Spirits (owner of Minden Mill Distillery in the Carson Valley) and Constellation—announced major layoffs.

The downturn isn’t supposed to begin reversing course until after 2027 or 2028, according to the 2026 State of the U.S. Wine Industry Report published by Silicon Valley Bank.

El Dorado County wine grape facts

Red Wine Grapes:

2024: 2,146 acres, 4,842 tons, $1,604 price per ton, total value $6,887,878

2023: 2,176 acres, 5,093 tons, $1,982 price per ton, total value $8,849,921

2022: 2,357 acres, 2,152 tons, $2,022 price per ton, total value $3,863,249

White Wine Grapes:

2024: 352 acres, 687 tons, $2,061 price per ton, total value $1,168,488

2023: 358 acres, 733 tons, $2,003 price per ton, total value $1,255,647

2022: 355 acres, 175 tons, $2,425 price per ton, total value $ 317,117

*All Wine Grapes

2024: 2,498 acres, 3,529 tons, $1,832 price per ton, total value $ 8,056,366

2023: 2,534 acres, 5,826 tons, $2,992 price per ton, total value $10,105,568

2022: 2,712 acres, 2,327 tons, $2,223 price per ton, total value $ 7,180,366

2021: 2,696 acres, 6,432 tons, $1,604 price per ton, total value $ 7,207,273

2020: 2,624 acres, 6,235 tons, $1,802 price per ton, total value $ 9,663,459

2019: 2,636 acres, 7,023 tons, $1,671 price per ton, total value $12,092,373

*Prior to 2022 red and white grape harvest information was combined.

**2025 numbers not available until July.

Source: El Dorado County Crop Report

People still imbibing

While fewer people are drinking wine, they are still drinking.

Seated around a picnic table at Holly’s Hill Vineyards and Brewery were three generations of the Mangiardi family; two well below drinking age. And that’s what the adults love about this El Dorado County winery—it’s family friendly.

April Mangiardi was there with her husband, their two kids, and his parents.

The youngsters were entertaining themselves with toys provided by the winery. The adults were enjoying the relaxed atmosphere, the ability to bring their own food, and tasting an array of wines.

“I think people are more inclined to drink when there’s an event,” Mangiardi said. Bubbles and Bites is the event that brought the group out this particular Sunday.

The Folsom resident has been part of the wine club for two years after being introduced to Holly’s Hill by a friend. This was the first time for her in-laws from Pismo Beach to visit the winery.

“Here we are at 2,400 feet. You don’t have that in Paso Robles,” Heidy Mangiardi said. She was effusive about the scenery, the views and how everything is so green.

Mike and Amy Weidner of Gardnerville, Nev., with their wine purchase from Boeger winery in Placerville. (Image: Kathryn Reed)

Dave and Pat Derossier of El Dorado Hills have clearly not stopped drinking wine, as they belong to five wine clubs. In one weekend they attended wine club events at El Dorado County’s Madrona and Holly’s Hill wineries.

They like sharing winery experiences with family and friends, as well as meeting new and interesting people. Their guests at Holly’s Hill were their daughter and two of her friends.

Best friends Jennifer Grogan and Jessica Dalton were spending an early afternoon at Boeger Winery in Placerville in February.

“I grew up here in El Dorado County. Boeger to me is my happy place,” said Dalton, who now lives in Sacramento.

Both continue to drink wine for the flavor and social aspects.

Mike and Amy Weidner of Gardnerville were at Boeger on the same day to pick up their wine club allotment. They also belong to wine clubs at Lava Cap and Starfield Vineyards in the area.

“I love the people and the atmosphere,” Mike Weidner said. They come to this wine region every few months; he prefers going to events, she likes it when the wineries are quieter.

Now they are starting to enjoy this adult grape juice with their 23-year-old daughter, who with her friends are getting into wine.

Signs point the way to some of the wineries scattered throughout El Dorado County. (Image: Kathryn Reed)

EDC wineries persevere

While “pivot” was the word of the year in 2020, it is very much the word de jour for El Dorado County’s wine industry. They are looking for ways to bring people to the wineries, join their clubs, and buy bottles at restaurants and shops.

“People don’t want to go to a winery and pay $150 and taste a couple wines. They don’t value the wine that much. They are now making decisions on what they can financially do,” Teena Hildebrand said. She and husband Frank founded Narrow Gate Vineyards in 2004 in the Pleasant Valley area. “They want an experience, but it does not have to be a big dog and pony show. They love to sit on the deck, they love the sounds, the pines, the ambiance here.”

It’s not uncommon for a tasting in Napa or Sonoma counties to top $100. In El Dorado County it’s closer to $15 a person, often with the fee waived with the purchase of a bottle.

That price point is a factor when it comes to attracting people to the area. It’s still unpretentious in El Dorado County. Conversing with the owners and/or winemaker is common.

Heidy Mangiardi was thrilled to meet Holly Cooper, who with husband Tom, founded Holly’s Hill. Now the operation is run by Josh and Carrie Bendick; their daughter and son-in-law.

“I feel like we don’t sell wine, we sell an experience,” Josh Bendick said. “We want them to be part of our family. Young people are coming up for the experience.”

Still, he admits sales and wine club memberships are down.

Adding a brewery has helped bring a different crowd to Holly’s Hill. The beer taps are just behind the traditional wine tasting counter. Providing a daily food menu and allowing people to bring their own food is attractive to people.

Younger people are also paying attention to what’s in the bottle beyond taste.

“The best thing we have done is become biodynamic certified. And we are going for organic certified because not everyone understands biodynamic,” Hildebrand said. “The younger generation doesn’t just drink wine. They care if you are using Roundup.”

Winery owners know they have to do more than produce quality wine. They are making a more concerted effort to be welcoming to families even though the main activity is for adults only.

While El Dorado Winery Association still puts on the annual Passport wine festival in April, it’s now one weekend instead of two. The annual barrel tasting is no longer a region-wide event. The organization has downsized, turning its focus to keeping the website updated and providing an easy to use map, creating brochures, and placing directional signs throughout the region.

Hildebrand is the outgoing president of the association, with Liz McCartney, administrative assistant, taking over until a winery executive steps in.

Wineries have discovered it’s more lucrative to have individual events than big group ones. Every Friday, Saturday and Sunday Narrow Gate has seasonally-inspired charcuterie picnic board or box pairings. Boeger offers Stories in the Cellar three days a week. Toogood In March let people bottle their own wine, Shadow Ranch had a wine and food pairing, Skinner paired wine with soup every Saturday, and Nello Oliva hosted a release party.

While Sierra Vista Vineyards & Winery has been around since 1977, Jim Czachorowski has only owned it since 2019. So, he’s been through a few rough years.

His emphasis has been in creating ways to draw people to the Pleasant Valley property. During Covid he erected heated, private pods that would be sterilized in between guests. Those igloo shaped structures remain seasonally so people can still be outside without being cold.

“I like being new, novel and creative,” Czachorowski said while walking the property.

Comedians, a hypnotist, musicians—they are part of the lineup at Sierra Vista. Sip and stroll events are common, where food stations are set up in the vineyards, each paired with a specific wine.

Teena and Frank Hildebrand of Narrow Gate Vineyards keep adapting to the ebbs and flows of the wine business. (Image: Kathryn Reed)

From the pods and along the strolls people can enjoy the views which stretch out to the snow covered Sierra.

A large pizza oven allows people to eat and sip, with chef Jason Clevenger whipping up food for special events like surf and turf for Valentine’s Day.

Food is a big part of what Narrow Gate is all about as well. Hildebrand believes one of the pieces missing in the conversation about alcohol consumption, and wine in particular, is that wine is food. Wine is also shared cultural and familial experiences.

In 2019 she published a cookbook titled The Kitchen and the Cellar, with the second edition being released in March. Stories are woven through the 100 recipes.

Lava Cap’s Nolan Jones, who is director of national sales, says it’s important to meet people where they are—to make wine accessible in terms of ease of tasting, price points, and atmosphere.

“Younger generations want an Instragrammable experience, but they also want it to be authentic and real,” Jones said. “If you look at El Dorado County as a wine region, it offers more value where you have high quality wine at a more fair price compared to anyplace in California.”

Note: A version of this story first appeared in the Tahoe Mountain News.

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