California grape growers turn to agave as wine sales slump

Facing weak demand for wine, California vintners are planting agave to produce spirits, hoping the shift will sustain their farms.

California’s wine sector is grappling with declining sales and an oversupplied market, prompting growers to explore alternative crops. Joy Merrilees, who runs Castilleja Farms in Kelseyville and serves as vice president at Shannon Family of Wines, has added agave to her operation because the succulent tolerates the state’s hot, dry conditions and requires minimal irrigation. Her farm now holds a half-acre of agave, with the first spirit, High Chaparral Agave Spirit, expected in two to three years.

A UC Davis 2025 survey counts roughly 100 growers cultivating about 1,000 acres of agave in 38 of California’s 58 counties, though only seven producers currently make agave spirits. Vineyard manager Ken Richter of Brutocao Family Vineyards, whose traditional grape business is shrinking, is researching the crop but remains cautious about its long-term viability. The trend reflects a broader effort by vintners to diversify and stay financially afloat amid a challenging market.