Central Coast Wineries Adjust Business Models to Deal With Downturn

Here are the morning’s top stories on Friday, July 31, 2026

• Tariffs, inflation, difficulty in finding buyers for grapes. It’s all been a challenge for local winemakers on the Central Coast. Many wineries are now looking at alternative business models to try to satisfy a fragmented consumer base. 
• Much of California is preparing for more hot weather this weekend. Temperatures could reach triple digits for many inland areas. And that means people near the coast will likely be looking for a way to cool off, at local beaches.  But the combination of heat waves and rough water conditions is resulting in lifeguards across the state becoming that much more important.

In 2025, California’s wine industry was especially hard hit. 80% of the nation’s wine production comes from the Golden State, and that makes a significant impact on California and the country’s wine business.

On the Central Coast, a number of wineries are struggling or are up for sale. Larry Schaffer is winemaker and owner of Tercero Wines in Los Olivos. “The current downturn has definitely affected my business in a negative way,” he said. “Sales are down, visitation is down. But it’s created opportunities – me looking at what I do, how I do it, and understanding what I need to do better and more efficient.”

That includes winemaker dinners, tastings at wine bars and private celebrations. But marketing comes at a cost and so Schaffer is selective. “With marketing, at times it takes three, four, five times to reach out to somebody before they connect with you. So you have to have this balance between persistence and patience, and I’m pretty good at doing that,” he said.

Ancient Peaks Winery is also struggling. Located in Santa Margarita, Senior Vice President Barry White said they’re offering adventure experiences from zip-lining to sunset tailgating – yet wine sales are still down. “It’s been very, very tricky. We’ve seen, depending on the brand, whether it’s control label or our own brands, we’ve seen upwards of a 25 to 30% decrease in certain areas of the business,” White said.

A grape glut accumulated over the years, forcing growers to limit production and remove their vineyards. According to the California Department of Food and Agriculture, the 2025 California grape crush fell by 6.2% from the previous year, making it one of the lowest grape crushes in over 20 years.

The first weekend of August is going to look a lot like most of the month of July: hot and humid. But the coming heat wave may be especially intense.

Most of Southern California has faced repeated heat advisories over the last few weeks. Ahead of this weekend, though, the National Weather Service has issued more severe extreme heat warnings for almost the entire region. Those will be in effect from 10 a.m. Friday through Sunday evening. Interior valleys around the state will likely see highs in triple digits.

The heat will send many people to the coast, but high surf advisories and beach hazard statements could make for dangerous conditions. Last weekend, Los Angeles County lifeguards performed nearly 2,000 rescues.

Pono Barnes is a county lifeguard. He has some advice for people who might go to beaches this weekend. “Swim near an open lifeguard tower. The next step beyond that is to come check in with the lifeguard. We’re more than happy to talk to you. We know where those hazard areas are at and we can very easily point them out to you if you’re not super experienced or just don’t go to the ocean all that much or the beach all that much,” Barnes said.