Largest U.S. Wine Company Gallo Closes Napa Valley Facility, Lays Off 93 Workers

California’s wine country is feeling the strain of a cooling market, and now that pressure has reached its largest producer. Gallo, the biggest wine company in the United States by volume, plans to close a major Napa Valley facility and cut 93 jobs across four other locations, tightening operations as sales decline and consumption slows nationwide.

Ranch Winery Closure in St. Helena

Gallo will permanently close its Ranch Winery in St. Helena, a 70-acre production site it acquired in 2015, and that decision will eliminate 56 positions as outlined in a Worker Adjustment and Retraining Notice filed with California authorities, taking effect in mid-April.

Layoffs at Louis M. Martini and Orin Swift

Staff reductions will also reach Louis M. Martini Winery and the Orin Swift Tasting Room in St. Helena, where cuts across hospitality and production add to the total job losses, extending the impact beyond the main facility and further narrowing operations within Napa Valley.

Healdsburg Cuts at J Vineyards and Frei Ranch

Job reductions will also reach Healdsburg, where J Vineyards and Frei Ranch will cut positions across production and hospitality, extending the company’s workforce reductions into Sonoma County and adding to the broader contraction already underway across its California operations.

Worker Adjustment Notice and April 15 Timeline

Gallo filed a Worker Adjustment and Retraining Notice with California authorities on Feb. 12, and that filing sets the timeline in motion, with the layoffs and the Ranch Winery closure scheduled to take effect on April 15 as the company moves ahead with the reductions.

Two-Year Downsizing Across California Facilities

For two years, the company has reduced its California footprint, and that process has included selling the Edna Valley and Wild Horse facilities in 2024, followed by the closure of the 300,000 square foot Courtside Winery in San Miguel, which eliminated 47 jobs.

Courtside Winery Shutdown and Prior Job Losses

Last September, the company closed its Courtside Winery near Paso Robles, and that 300,000 square foot facility’s shutdown led to 47 job losses, adding to the broader workforce reductions that have unfolded across California operations over the past two years.

Industry Consolidation Among Major Wine Producers

Across the industry, other major producers are also consolidating, as Foley Family Wines closed its Chalone facility and eliminated staff, Trinchero Family Wine listed vineyards for sale, and Treasury Wine Estates reported a 17% revenue decline alongside a writedown of its U.S. operations.

Declining U.S. Alcohol Consumption and Revenue Pressure

Fewer Americans now report drinking alcohol, and that decline in demand adds pressure across the sector, with a Gallup survey showing 54% of U.S. adults consume alcoholic beverages, marking the lowest level recorded in 90 years and weighing on producer revenue.

Gallo Narrows Its California Footprint