Background and Aims In recent years, increasing summer temperature, coupled with reduced and erratic rainfall during the growing season, has induced accelerated fruit ripening in several regions, resulting in an undesirable increase in wine alcohol concentration. This study was designed to evaluate the impact of canopy and water management on grape sugar and flavonoid accumulation, with the goal of reducing wine alcohol concentration while conserving or enhancing the concentration of phenolic substances. Methods and Results In 2011 and 2012, two irrigation treatments (I – irrigated and DI – deficit irrigated) and two canopy heights (HC – high canopy and SC – short canopy) were applied in a Merlot vineyard. No interactions between treatments were observed, and thus independent results were obtained; DI berries had significantly higher sugar concentration (+5%) than that of I in both years and higher wine alcohol concentration only in 2012. Short canopy berries had lower sugar concentration (−4%) and lower wine alcohol (−8%) (only in 2011) than that of HC. Anthocyanins and tannins in berry and wine were increased by water deficit and not affected by severe trimming. Conclusions Deficit irrigation did not reduce berry sugar concentration and wine alcohol concentration but did enhance desirable wine attributes. Berry sugar concentration and alcohol concentration in wine were reduced by SC in one of the two seasons. Water deficit and severe trimming showed independent effects on berry composition. Significance of the Study Severe canopy reduction at early stages of ripening can reduce sugars without affecting the accumulation of anthocyanins in Merlot. Conversely, DI applied before veraison, despite promoting anthocyanins accumulation, may also increase berry sugar concentration at harvest.