One of the leading wine suppliers in the United States is making strategic changes to its operations by closing a vineyard and letting go of 93 employees across multiple locations. This decision comes as the company adapts to shifting consumer preferences and a decline in alcohol consumption.
E & J Gallo Winery, known for brands like Barefoot and Apothic, is shutting down its Ranch Winery in Saint Helena, California, impacting 56 workers. The closure is scheduled for April, as stated in a WARN notice filed with the state.
Furthermore, approximately two dozen employees will be laid off at various California locations, including 15 at another winery in Saint Helena, two at a nearby tasting room, 11 at the Healdsburg winery, and nine at the Frei Ranch facility. These layoffs will also be effective in April.
The global wine market faces challenges due to an aging consumer base, declining consumption rates, and difficulty in attracting younger drinkers, according to IWSR. In response to these trends, Gallo aims to align its production with demand to ensure future success, as mentioned by a company spokesperson.
Gallo’s tasting rooms in Napa, Sonoma, and Paso Robles will continue to operate, providing a unique experience for wine enthusiasts, the spokesperson confirmed.
“These changes are driven by market dynamics, evolving consumer demand, and available capacity across our wineries,” explained the spokesperson.
Established in 1933, Gallo is a privately held, family-owned company based in Modesto, California. Apart from wine, the company also produces ready-to-drink beverages, distilled spirits, and beer.
According to WineBusiness Monthly, Gallo holds the title of the largest winery in the United States, with an estimated annual case sales volume of 94 million.
Gallo is renowned for its budget-friendly wines, but has faced challenges due to declining sales and increased competition from spirits and canned cocktails. Wines priced under $12 experienced significant struggles in 2025, as highlighted in a report by Silicon Valley Bank, leading to production levels dropping to their lowest point in over a decade.