Americas biggest winemaker Gallo shuts another California hub and fires more staff

America’s largest wine producer is closing yet another California facility and cutting jobs, deepening a wave of shutdowns as the state’s wine industry struggles through a prolonged slump.Modesto-based Gallo revealed plans to shutter its Lodi crush facility and lay off 20 employees, the latest blow in a series of closures by the alcohol giant during a tough chapter for California winemakers.A spokesperson for Gallo said the decision to close the San Joaquin County facility “reflects available capacity in our other wineries in the region.”The facility on West Turner Road processes grapes into wine for growers who don’t have their own winemaking operations, according to the San Francisco Chronicle.The spokesperson said affected employees had been “individually notified” and were receiving support from the company.Meanwhile, the Lodi shutdown is just the latest in a series of recent cutbacks by Gallo.Earlier this year, the company announced it would drop three Bay Area locations, including its Ranch Winery in Helena, resulting in nearly 100 job losses.Last year, Gallo also closed its 300,000-square-foot Courtside Cellars winery in San Luis Obispo County.This latest closure arrives as California’s $55 billion wine industry grapples with a third consecutive year of shrinking demand.The downturn is fueled by record drops in alcohol consumption, rising awareness of health risks tied to drinking, and fierce competition from alternatives like hard seltzers.An industry report published in January by Silicon Valley Bank predicted U.S.wine sales will continue to decline in 2026, though not as sharply as in 2025 — before largely leveling off in 2027 or 2028.Analysts predict the industry will start to recover after that, with Napa and Sonoma counties poised to bounce back more quickly than most other wine regions nationwide.Gallo is also slashing staff at several of its renowned labels, including the Louis M.

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