Glass half full: Asia offers hope for struggling California wine
Christopher Beros, the California Wine Institute’s Director for Greater China and Southeast Asia, explains to Joyce Yip why Asia, specifically China, still has a soft spot for Californian vino.
On paper, the California wine industry is looking grim.
A 2025 report by The Wine Institute said exports dropped by 35%; and as of this March, four wineries have closed down or have undergone major restructuring. Even E & J. Gallo Winery, the largest family-owned winery and wine producer in the world by volume, implemented several rounds of facility closures and layoffs.
Shifting consumption trends and the bearish global economy are to blame; but the American wine trade, specifically, was further damaged by President Donald Trump’s 2025 tariffs that resulted in tit-for-tat protectionism and sweeping reciprocal levies around the world. A number of liquor stores in Canada, for instance, pulled American bottles from its shelves when the U.S. administration announced a 25 percent additional tariff on imports from its Northern neighbour, promoting Canada – the previous, largest buyer of U.S. wines – to retaliate with duties on a range of U.S. goods.
According to the U.S. International Trade Commission, U.S. wine producers have lost an estimated US$134 million in export value to Canada since March 2025, contributing to a 30% decline in total wine exports globally.
While U.S. wines are finding new sales channels in Italy, United Arab Emirates, Belgium, South Africa and Japan, these new markets barely make up a fraction of its loss.
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Room for growth
Christopher Beros, the California Wine Institute’s Director for Greater China and Southeast Asia, believes that Asia still holds potential, as wine appreciation in the region remains comparatively early in its development.
“In many markets [in Asia], wine is still a developing category with room for growth, particularly among consumers who are curious, internationally minded and interested in food, travel and lifestyle. That does not mean Asia is immune to broader trends, but the category is at a different stage of development,” he says, adding that Greater China, Southeast Asia, Korea and Japan are “among the most important long-term opportunities for Californian wineries”.
He notes that California wines strike a compelling balance—welcoming to newcomers, yet layered and complex enough to engage seasoned palates. Secondly, varieties like Zinfandel also pair well with a wide range of Asian cuisines. Finally, California’s image of innovation, sunshine, food, travel and culture resonate with consumers. Such soft-cultural branding, Beros explains, is “especially important in markets where wine is not only a beverage choice, but also part of a broader lifestyle and hospitality experience”.
Quality, craftsmanship and terroir: a recipe for success
Despite a US$69 million drop in California wine imports to China between 2024 and 2025, according to statistics from the U.S. Census Bureau, Beros believes pending regulatory and economical clarity will soon remedy “slower orders and more cautious inventory decisions”. He’s also banking that China’s rising interest in its locally made wines will eventually trickle to their imported siblings.
“[High-quality Chinese wines] encourage consumers to think about wines in terms of origin, craftsmanship, quality and occasion. These are all areas where California has a strong story to tell,” he says.
“The market will not move in a straight line, especially in today’s geopolitical environment, but the consumer development we have seen over the past 10 to 15 years is truly astounding. California wineries that stay engaged, build relationships and tell a clear story about quality, place and food culture will be well-positioned for the future.”
