Global wine slump worsens with another Chapter 11 bankruptcy
People around the world don't drink wine in the same amount they used to.
"Global wine consumption has dropped sharply over the past seven years, according to a recent report from Gordon Brothers, with worldwide demand falling from 245 million hectoliters in 2017 to 214.2 million hectoliters in 2024," Vinteur reported.
This marks the lowest level of wine consumption since 1961.
"The United States, one of the world’s largest wine markets, is experiencing a similar trend. U.S. wine consumption is projected to decline by 7.2% in volume and 6.3% in sales by the end of 2024, continuing a four-year streak of falling sales," the data shows.
In 2026, there has been a recovery, but it has created a sort of split market, according to Silicon Valley Bank's State of the US Wine Industry 2026.
"Wineries in the top quartile reported 8% sales growth and 11.9% operating income, while the bottom quartile saw a 10.2% sales decline and -10.5% operating margin. These results reflect fundamental differences in how they are repositioning in response to demand," the SVB study showed.
Now, another major wine brand, Pacific Rim Winemakers, has filed for Chapter 11 bankruptcy.
Pacific Rim Winemakers files Chapter 11 bankruptcy
Pacific Rim is best known for its Rieslings.
"At Pacific Rim, we celebrate 'Sweetology,' crafting Rieslings that range from dry to dessert sweet. Our sustainable winemaking in Columbia Valley, WA, balances vibrant sweetness and fresh acidity for unmatched quality," the company shared on its website.
Its wines include:
- Pacific Rim; The company's signature line or Rieslings.
- Rainstorm Made from Pinot Noir and Pinot Gris from Willamette Valley.
- Thick Skinned: Made from sun-ripened, thick-skinned grapes.
Wine Enthusiast has most Pacific Rim Rieslings rated in the high 80s or low 90s. It was very positive on the brand's 2021 vintage.
"The aromas provide plenty of appeal, with notes lime leaf, herb, peach and jasmine. Off-dry-drinking stone-fruit flavors follow. There's pleasing acidity throughout," Wine Enthusiast shared.
Related: Award-winning brewery closes facility after Chapter 11 bankruptcy
Pacific Rim Winemakers Chapter 11 – Key Points
This bankruptcy is part of a structural shift in the wine industry as consumption falls and younger drinkers abandon wine.
“This is not a cycle you can wait out. The wineries still demonstrating growth are not betting on a return to normal – they are fundamentally altering how they engage with the consumer, manage inventory, and are redefining their brand’s value proposition,” said Rob McMillan, First Citizens Bank’s Silicon Valley Bank Wine Division founder and author of the report.
- Pacific Rim Winemakers filed for Chapter 11 bankruptcy protection to restructure its finances while continuing operations, according to Pacer Monitor.
- The filing allows the winery to continue operating while addressing debt obligations under court supervision, according to USCourts.gov.
- Wine producers have also been hit by rising costs for inputs like glass, grapes, and shipping, according to Wine Business.
- Filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of New York, according to Pacer Monitor.
Case No.: 8-24-73763 (Chapter 11) The company listed estimated assets of $10 million to $50 million and liabilities in the same $10 million to $50 million range. - Pacific Rim was sold to Banfi Vintners' Mariani family of New York in 2015, according to Decanter.
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Recent Winery Chapter 11 Bankruptcies – Key Examples
"America's wine industry is grappling with one of its most painful downturns in decades as younger consumers cut back on drinking and baby boomers age out of the market — reshaping alcohol habits nationwide," according to Fox News.
It's a situation that has led to multiple bankruptcies in the industry.
"The trend has contributed to more than $1 billion in lost U.S. wine revenue last year and a roughly 6 million-case drop in production, according to industry data and reports," Fox News added.
The Chapter 11 bankruptcies include:
- Sran Vineyards LLC filed for Chapter 11 bankruptcy protection in February 2026 to avoid a public auction after defaulting on a loan, according to TheStreet.
- Aloria Vineyards, a California-based winery, filed for Chapter 11 bankruptcy in February 2026 to reorganize while continuing operations, according to filings on PacerMonitor.
- Vintage Wine Estates, one of the largest U.S. wine companies, filed for Chapter 11 bankruptcy in July 2024 with more than $400 million in liabilities, according to PacerMonitor.
The SVB study shows that the industry may have already hit bottom and that some companies will rebound.
“We expect the decline in total market demand to improve in 2026, with the market bottoming in 2027 through 2028 before returning to modest growth rates,” said McMillan.
Related: Troubled pizza restaurant franchisee files Chapter 11 bankruptcy
