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One of the country’s largest wine suppliers has closed vineyards and laid off 93 employees across various locations as it seeks to better position its business amid falling alcohol consumption.
E&J Gallo Winery, which owns brands including Barefoot and Apothic, will close Ranch Winery in St. Helena, California, in April, according to a WARN notice filed with the state. The closure of the production facility affects 56 workers.
The company is also laying off about two dozen employees at several other locations across California, including 15 employees at another winery in St. Helena and two employees at a nearby tasting room. Gallo also laid off 11 employees at its Healdsburg winery and nine at its Frei Ranch facility. These layoffs will take effect from April.
that wider wine market According to IWSR, it is suffering from an aging consumer base and declining consumption. Companies are also having trouble recruiting consumers who are young and of legal drinking age. As demand has plateaued, Gallo aims to increase production to meet demand and position itself for “future success,” a spokesperson said in an email.
Gallo’s tasting rooms in Napa, Sonoma and Paso Robles will remain open, the spokesperson added.
“These changes are driven by market dynamics, evolving consumer demand and available capacity across the winery,” the spokesperson said.
Privately owned and family-owned, Gallo was founded in 1933 and is headquartered in Modesto, California. In addition to wine, the company also makes ready-to-drink beverages, malt beverages, spirits and beer.
WineBusiness Monthly Place Gallo is the largest winery in the United States.., annual case sales are estimated at 94 million.
Gallo is best known for its affordable wines, but has been hit hard by poor sales and increased competition from spirits and canned cocktails. By 2025, wines priced under $12 will suffer the most. According to Silicon Valley BankProduction levels have been raised to the lowest level in more than 10 years.
