As the Wine Industry Pulls Back, Some Are Still Betting Big on Napa

Napa Valley’s wine industry is facing serious headwinds. Growers are struggling to sell grapes, some wineries have filed for bankruptcy, and farmers are replacing vines with crops such as olives, pistachios, and agave. Yet a handful of recent investments suggest that some owners are choosing to expand rather than retreat.

Caren and Nick Orum, owners of Arborum, bought a 24-acre section of a neighboring property in St. Helena, bringing their contiguous estate to 44 acres. They had been searching for additional vineyard land since last year and saw the purchase as a rare chance to expand their home estate and gain more control over their grapes.

The Orums are removing some existing vines and plan to replant in the spring. The goal is for all Arborum wines to be estate-grown, certified organic, and farmed regeneratively—qualities Caren Orum believes will matter to younger wine drinkers.

Another high-profile investment is Jean-Charles Boisset’s purchase of Artesa in Carneros. The winery began in 1992 as Codorniu Napa, an extension of the Raventós Codorníu family, known for its Cava. Boisset plans to preserve Artesa’s production of cool-climate Chardonnay, Pinot Noir, Cabernet Sauvignon, and Spanish varieties such as Albariño and Tempranillo. He also intends to make new JCB sparkling wines from the vineyards and turn the hilltop estate and its pyramid-shaped winery into an arts center.

Boisset says he wants to make Napa welcoming to people who may not know much about wine, and describes the acquisition as an opportunity he had considered for more than a decade. He acknowledges the industry’s current challenges but says his confidence in Napa extends beyond the present downturn.

Hayes Drumwright has also invested in a historic property, acquiring Edge Hill from vintner Joel Gott. The site, established in 1867, is one of the country’s oldest three-story gravity-feed wineries. Drumwright and winemaker Sam Kaplan plan to replant its existing field blend of Zinfandel, Petite Sirah, and Rhône varieties with Cabernet Sauvignon in 2027. The new vines may not be ready for harvest until 2032.

The estate is expected to become home to a brand called Ultra Mortem. In the meantime, its stone building will serve as a tasting room for Vida Valiente while that winery is being completed. Drumwright, a three-time cancer survivor, remains optimistic about Napa’s future and points to the potential of a new generation of wealthy technology entrepreneurs and wine collectors.

Lawrence Wine Estates CEO Carlton McCoy sees a broader shift underway as a new generation takes the reins and consumer expectations change. The company, whose holdings include Heitz Cellar, Trailside Vineyard, Ink Grade, and Haynes Vineyard, recently opened Home Ranch, a private hospitality destination at Heitz Cellar. The venue lets guests taste wines from multiple estates in one visit, responding to a trend toward fewer appointments per day.

McCoy says today’s wine leaders can build on the work of earlier generations without having to prove that Napa can make excellent wine. Instead, he sees an opportunity to make the valley feel less formal and flashy, with greater emphasis on personal connection and appreciation for the place.

Despite the industry’s difficulties, these acquisitions and new approaches suggest that some investors believe Napa Valley’s long-term prospects remain strong.

About the Author: Chris Lehoux

Meet Chris Lehoux, an experienced wine connoisseur and dedicated blogger with a deep passion for all things wine-related. With years of expertise in the industry, Chris shares insightful wine reviews, valuable wine tasting tips, expert pairing advice, and captivating tales of vineyard visits. Join Chris on a journey through the world of wine, where every sip is an adventure waiting to be savored!