"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."
"California wine giant Gallo is laying off more than 90 employees and closing a major Napa Valley wine-making facility. 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."
"Customers are choosing quality, not quantity: they would rather to buy fewer bottles and invest in a premium product, said Rob McMillan, Silicon Valley Bank's executive vice president and wine expert. Many of Gallo's wines fall into the sub-$12 category, which has performed poorly for the last decade, McMillan said. With younger generations drinking less, and the baby boomer generation - the industry's core base - aging out of the wine market, it's been a challenging few years for the industry."
Gallo is cutting 93 positions across five sites and will permanently close its Ranch Winery in St. Helena, eliminating 56 jobs, including more than three dozen wine technicians. The company says operational adjustments respond to market dynamics and changing customer demands while not materially impacting tasting rooms in Napa, Sonoma and Paso Robles. Gallo acquired the Ranch Winery in 2015 to expand into super-premium and luxury wines, but that investment underperformed. Additional layoffs will affect Louis M. Martini, Orin Swift, J Vineyards and Frei Ranch. The moves reflect broader U.S. wine industry challenges as consumers favor quality over quantity and younger cohorts drink less.
Read at Los Angeles Times
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