ECONOMY
Local wine connoisseurs say national downturn could be New Mexico’s moment to shine
The state’s wine industry, the nation’s oldest, is approaching its 400th anniversary
New Mexico is home to more than 50 wineries and 100 winegrowers — and yet, out-of-state visitors of Casa Rondeña Winery still frequently tell general manager Quin Hanrahan they had no idea the state even had a wine industry.
They’re even more surprised, Hanrahan said, when he tells them that New Mexico is the oldest wine-producing region in the ϼ States. The Land of Enchantment started making wine in 1629 — predating the start of California’s wine production by 140 years.
“We do have good soil out here,” Hanrahan said. “We don’t have the same rain as some of those places, but that just means we have to care a little bit more and maybe try a little bit harder. But not that it’s undoable.”
New Mexico’s wine history — from the first grapes planted along the Rio Grande by Spanish missionaries to the launch of the Gruet family’s American operations near Truth or Consequences — is something nonprofit trade association New Mexico Wine is working to shed light on, especially as the industry nears its 400th anniversary in 2029.
But the milestone approaches as the alcoholic beverage industry faces a crossroads.
The industry is contracting nationally due to a mix of factors, including higher costs of doing business, tariffs and fewer people drinking as a result of emerging health consciousness among consumers.
The craft beer industry has been hit particularly hard. But the wine industry has also felt the squeeze, finishing 2025 with a roughly 2% decline in both volume and revenue compared to the year before, according to Silicon Valley Bank’s 2026 State of the U.S. Wine Industry report. The total number of wineries in America also fell by 3% last year, according to data from Wine Business Monthly.
In New Mexico, the local craft beer scene has seen a pullback up close, with one of the state’s largest brewers, Bosque Brewing Co., closing all of its taprooms late last year. The local wine scene, however, has gone relatively unscathed, according to industry experts.
“New Mexico is weathering the storm extremely well,” said Jasper Riddle, president and owner of Noisy Water Winery. The Ruidoso-based winery has expanded in recent years, partly with the help of a state economic development grant two years ago, and is preparing to open a seventh location in Carlsbad.
“In the adult beverage category, things are definitely in flux,” said New Mexico Wine Executive Director Chris Goblet. “But in that flux, there are winners and losers, and a lot of the smaller brands have fared well because those brands have high engagement with their clients. It’s the massive companies that have seen massive declines.”
While home to popular wine names like Gruet and other expanding brands like VARA — which broadened distribution of its sparkling wines to five new states in October — New Mexico’s wine scene is still primarily made up of what Goblet would consider smaller, more “relational” wineries.
Wine is also a vastly different industry compared to craft beer, added Goblet, who got his start in craft beer before entering the wine business 10 years ago.
Unlike craft beer — an industry Goblet described as more urban and having experienced “explosive growth" and, therefore, oversaturation in recent years — the state’s wine industry is hundreds of years old and more rural due to the agricultural nature of winemaking.
“We didn’t have a big growth spurt, so we don’t have a contraction. And nobody is in anybody’s backyard. There’s tons of space for individual wineries to thrive, create their own brand and stand out as unique,” Goblet said, adding that the local industry has been well-established by multiple generations of local families.
But the industry isn’t without challenges.
Regina Wilson, regional manager for Gruet Winery, said the industry’s biggest challenges are agricultural in nature, especially in New Mexico, which is facing an ongoing drought.
Climate change is also a concern. But New Mexico is no stranger to climate challenges and finding ways to make agriculture work, according to Albuquerque sommelier — trained wine professional — Zach Olson.
Olson — also an account executive for regional wine distributor Favorite Brands — works with winemakers globally and in New Mexico. He said part of what makes New Mexico wine unique is the state’s rich agricultural history and portfolio, as well as experts who know the ins and outs of water management, sustainability and land stewardship.
Costs are also a challenge for the industry. Wayne Moore, chief operating officer for D.H. Lescombes Winery & Bistro, said the cost of everything from bottles to cardboard boxes and pallets has gotten “substantially more expensive.” He added that the cost of shipping supplies from California to New Mexico has doubled in the past two weeks.
Another challenge the wine industry faces includes education, according to Goblet. He said finding a job in wine, learning the trade and launching a wine startup are “very hard,” and costly. Goblet said he and New Mexico Wine have been working to expand wine programs at local schools like Central New Mexico Community College and New Mexico State University over the last several years. An incubator for wine startups would be Goblet’s dream, he added.
But overall, Goblet said he would characterize the local wine industry as stable.
In the years leading up to the COVID-19 pandemic, Goblet said he saw at least one winery close per year. After the pandemic, closures continued, but new ones popped up in their place. Goblet estimates about three wineries closed last year, but four new wineries joined New Mexico Wine this year.
“Wine is kind of funny like that. It’s not boom or bust, it’s just steady,” Goblet said.
Wilson agreed, adding she is starting to notice a shift upward for Gruet.
“It feels like everything is coming back into place,” she said. “We’ve had a really, really great (quarter one) to start off the year … so I think things are looking up.”
Olson said he would also describe business for Favorite Brands — which sells wines from across the globe to stores, restaurants and businesses in New Mexico and Texas — as “maybe flat to potentially up a little bit.”
While wine sales are down industry-wide, the prices consumers are willing to pay for a bottle are up. Olson said he thinks this points to a rising demographic of young wine drinkers not necessarily abstaining from drinking, but being more picky about what they drink.
“What we’re seeing is the younger generation rejecting mass-produced, conventionally farmed and filled-with-additives bottles of wine, and they’re willing to spend a couple more dollars on something they trust,” Olson said. “There is an uptick in what it looks like to be an intentional consumer making intentional purchases.”
For that reason, Olson said he views the current state of wine as a chance for the industry to recalibrate, which he thinks New Mexico is well-suited to do with its “insanely vast selection of very great wine and really tight-knit and small but mighty community of wine nerds.”
For Casa Rondeña Winery, seizing that opportunity means leaning into the property’s lush landscapes, events and laid-back culture.
“Albuquerque has a very charming vibe, where it’s not uptight. We’re not holding our noses up at anyone,” Hanrahan said.
Gruet is taking a similar approach, hoping to make wine less intimidating and more approachable through community partnerships, sweeter sparkling wine options, bingo and trivia nights, and fun labels like the winery’s new “Brut 66.”
Some are embracing artificial intelligence as a resource for farming advice based on local weather and soil trends. Others are building their portfolios of sparkling and nonalcoholic wine, or leaning into the industry’s educational value through winery tours and tastings.
Education is the priority for Goblet, who said New Mexico Wine and the state are partnering to explore how to make New Mexico known for its title as the oldest wine-producing region in the lead up to the industry’s 400th anniversary.
Notoriety isn’t necessarily the main objective, Goblet noted, and the Land of Enchantment will never grow enough grapes to rival California. But as the state’s wineries endure and continue their generational craft, he hopes more people will begin to take New Mexico wine seriously.
“New Mexico wine is an underdog, and I’m a big proponent of rooting for the underdog and showing people what can be done,” Goblet said.
While the rest of the industry is facing a downturn, local wine experts say New Mexico could be seeing its moment in the sun.
“We’re going to face adversity, but with that, we still have this big beautiful opportunity in 2029 where we can celebrate our industry before any other industry in the entire nation gets to say they’re 400 years old,” Riddle said. “That gets me excited about what we have in front of us.”
Kylie Garcia covers retail and real estate for the Journal. You can reach her at kgarcia@abqjournal.com.