Largest supplier of wine in U.S. faces layoffs and closure of key Napa facility
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California wine giant Gallo is laying off more than 90 employees and closing a major Napa Valley wine-making facility.The Modesto company said Thursday the cuts are necessary to adapt to market dynamics and changing customer demands.In total, 93 employees across five sites will lose their jobs, according to a Worker Adjustment and Retraining Notice the company filed with the state last week.The “operational adjustments” will not “materially impact” the company’s tasting rooms in Napa, Sonoma and Paso Robles, a spokesperson for the company said in a statement.Business Amazon announced Tuesday it would close all of its brick-and-mortar Amazon Fresh and Amazon Go stores, with plans to convert some locations into Whole Foods.Gallo plans to permanently close its Ranch Winery in St.
Helena.In 2015, the company bought the “custom crush winery” capable of crushing 30,000 tons of grapes, hoping to bolster its presence in the super-premium and luxury wine segment.
That investment has not panned out.The closure means 56 employees — including more than three dozen wine technicians — will lose their jobs between April 15 and the end of January 2027, according to the notice.Layoffs are also planned at Louis M.
Martini Winery and Orin Swift Tasting Room in St.Helena and J Vineyards & Winery and Frei Ranch in Healdsburg.In 2025, Gallo closed its Courtside Cellars winery in San Miguel and laid off 47 workers, according to the San Luis Obispo Tribune.
Business California’s wine country struggles with changing tastes, foreign competition and too many grapes on the vine.The layoffs are indicative of the U.S.wine industry’s broader struggles amid shifting tastes.Customers are choosing quality, not quantity: they would rather buy fewer bottles and invest in a premium product, said Rob McMillan, Silicon Valley Bank’s executive vice president and wine expert.
Many of ...