Napa Valley wine growers are struggling as falling demand leaves more grapes unharvested. Silicon Valley Bank’s 2026 wine industry report says about half of California wineries are not profitable and the industry lost more than one-billion-dollars last year. Sales and tasting room visits are down, with younger consumers drinking less wine. Northern California growers are also facing new groundwater costs. A new state rule will require wineries to pay nearly 100-dollars per acre each year for irrigated land as part of California’s water conservation efforts.