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Gallo, the preeminent winemaker in the United States, has announced plans to shut down a production facility in Napa Valley, a decision that will affect the livelihoods of many workers in the region. The company intends to permanently close the Ranch Winery located at 105 Zinfandel Lane in Saint Helena, marking a significant shift in its operations.
This closure will lead to the permanent loss of 56 jobs. Additionally, Gallo will cut 37 positions across four other facilities situated in Saint Helena and Healdsburg, as confirmed by a filing with the state’s Employment Development Department.
The announcement of these job cuts was made last week, with the changes set to be implemented by April 15. The move reflects broader challenges currently facing the wine industry, both locally in the Bay Area and on a larger scale.
Amidst evolving consumer preferences, there is a noticeable decline in wine and alcohol consumption, particularly among younger demographics. These shifts in drinking habits have contributed to the industry’s struggles, underscoring the difficult environment that wine producers like Gallo are navigating.
The jobs cuts were announced last week and are set to take effect on April 15.
The downsizing at Gallo comes in the midst of strong headwinds facing the wine industry as a whole. Changing drinking habits, including a decrease in wine and alcohol consumption among younger people, have seen the wine industry struggling in the Bay Area and beyond.
In a statement to local affiliate KRON4.com, Gallo said the layoffs and closures were “driven by market dynamics, evolving consumer demand, and available capacity across our wineries.”
Impacted employees are receiving personalized support, transition packages and opportunities to explore other roles within Gallo, the winemaker also said. Gallo said the layoffs and closures will have no impact on its tasting rooms in Napa, Sonoma and Paso Robles.