This publication presents an analysis of recent trends for the Tennessee wine and grape industries. Growth in both the wine and grape sectors has been substantial but has recently slowed. These sectors have begun to lag behind those of key neighboring states. The data for these states are also presented for purposes of comparison. The COVID-19 pandemic has important implications for the Tennessee industry. A set of policy recommendations aimed at leveling the playing field for Tennessee’s wine and grape industry with that of other states, bolstering sales, and increasing production of Tennessee wines and Tennessee grapes are also made.