'Bloodbath' hits wine country as millennials and boomers abandon alcohol

America's wine industry is grappling with one of its most painful downturns in decades as younger consumers cut back on drinking and baby boomers age out of the market — reshaping alcohol habits nationwide.

The trend has contributed to more than $1 billion in lost U.S. wine revenue last year and a roughly 6 million-case drop in production, according to industry data and reports.

Across California in particular, major producers and family-run wineries are shuttering facilities, laying...