America’s Largest Wine Producer Announces Closure, Layoffs in California Wine Country

(Photo: E. & J. Gallo Winery)

America’s largest wine producer has announced plans to shutter one of its facilities and lay off roughly 20 workers, according to the Wine Business.

A spokesperson for E. & J. Gallo Winery confirmed the closure of a crush facility in Lodi, California, where the company processes grapes for growers who don’t have their own production infrastructure. Gallo bought the facility in 2021 from Constellation Brands, the American alcohol giant behind The Prisoner Wine Company and High West Whiskey.

“Gallo has decided to suspend crush operations at its Turner Road location,” a spokesperson told the outlet. “This decision reflects available capacity in our other wineries in the region. Impacted employees have been personally notified and are receiving individualized transition support, including the opportunity to explore other roles within the organization.”

The verbiage of the statement leaves much open for interpretation — namely, whether 20 employees are expected to be let go or offered other roles within Gallo. A National Labor Relations Board filing made in April suggests that the Lodi facility counts 43 unionized workers, plus more employed in management, supervision, the cellar department and the maintenance department.

The closure is the latest in a string of cutbacks that have reduced the size of Gallo’s California wine operations. In February, the company laid off 56 workers from its Ranch Winery in Saint Helena, followed by the dismissal of dozens more for its properties in Healdsburg and Frei Ranch.

Gallo is by all accounts the largest family-owned winery in the world, and a titan of the broader alcohol industry. Its portfolio spans myriad budget-friendly wine staples, including Barefoot Cellars, Apothic, Dark Horse and Boone’s Farm. The company also owns the wildly popular High Noon Vodka Seltzer, as well as spirits brands New Amsterdam Vodka, Camarena Tequila and RumChata.

Despite its recent layoffs and closures in the Golden State, Gallo has been quick to expand in other directions. The company recently completed its acquisition of Four Roses Bourbon in a deal valued at up to $775 million, setting a record price for a Kentucky bourbon distillery.