The Glass Fire of 2020 devastated Newton Vineyard. One of Napa’s most picturesque wineries, Newton occupied a prime spot on Spring Mountain and was home to hillside vineyards as well as gorgeous English-style gardens and a striking winery. The flames killed most of the vines, destroyed the winery and took out the entire 2020 harvest.
Rebuilding the property was going to take several years and millions of dollars, but owner LVMH had plans to bring Newton back to life. Then last week, the company pulled the plug, announcing to wine club members that Newton was shutting down for good. (LVMH did not respond to requests for comment.)
The decision makes a lot of sense: LVMH owns other Napa properties, and the cost to restore Newton was going to be tremendous. Still, I suspect that if the fire had come 10 years earlier, LVMH wouldn’t hesitate to rebuild. Newton is both a victim of the flames and of the times.
U.S. wines sales have declined for four straight years, according to my colleagues at IMPACT Databank. The 2024 harvest was California’s smallest in 20 years, as growers left 100,000 tons of fruit unpicked, rotting on the vine. Tens of thousands of acres of vineyards are being pulled out. Industry analyst Rob McMillan calls it the biggest correction in 30 years in his latest annual “State of the Wine Industry” report for Silicon Valley Bank.
But let’s all take a deep breath. The next few years will not be easy for those who make their living growing grapes, making wine and bringing it to consumers. Still, there is plenty to be hopeful about, as well as plenty of work to be done. Wineries need to use this challenge as an opportunity.
Wine's boom has been fading for a decade
The current tough times for wine are not exactly a surprise, but it’s been hard to really gauge the problem. No one wants to admit trouble is coming when American wine sales have had such a good run. And the pandemic obscured many problems.
In 2020, when we were locked away at home, U.S. wine sales grew 4.33 percent by volume, according to IMPACT. They’ve been falling ever since, including an estimated 2.4 percent decline in 2024. The pandemic created a surge of demand, then wreaked havoc with the supply chain. Wholesalers and retailers still have a backlog of inventory.
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