Giant winemaker closes historic winery facility, lays off staff

Lower vino depletion since 2020 has forced large vino companies similar E. & J. Gallo to unopen down facilities and laic disconnected employees.

The industry's yearly gross has declined by $19.7 billion, oregon 21%, to $74.3 cardinal successful 2025 since generating $94 cardinal successful 2020, according to Silicon Valley Bank's State of the US Wine Industry Report.

"Boomers are drinking less, and determination are less of them each day," wrote Rob McMillan, enforcement vice president and laminitis of the Silicon Valley Bank Wine Division, which is simply a part of First Citizens Bank.

"They are replaced by the younger cohorts who aren't arsenic overmuch successful emotion with vino arsenic their elders," McMillan, writer of Silicon Valley Bank's State of the US Wine Industry Report, wrote.

Gallo Winery closes crush installation

The largest U.S. vino institution E.J. Gallo Winery said it volition adjacent its Turner Road West grape crush installation successful Lodi, Calif., which a winery co-op primitively opened successful 1946, and laic disconnected astir 20 workers astatine the site, Wine Business reported.

Gallo volition proceed operating its Tetra Pak blending and bottling, arsenic good arsenic finished bully distribution, astatine its adjacent Turner Road East installation successful Lodi.

The vino institution had precocious added a 200-milliliter Tetra enactment astatine Turner Road East.

"Gallo has decided to suspend crush operations astatine its Turner Road location," E.J. Gallo said successful a statement. "This determination reflects disposable capableness successful our different wineries successful the region."

"Impacted employees person been personally notified and are receiving individualized modulation support, including the accidental to research different roles wrong the organization."

Workers voted for national

The closure announcement comes conscionable weeks aft 37 of the company's 43 eligible employees astatine 5852 West Turner Road successful Lodi connected May 20, 2026, voted successful favour of national practice by the United Food Commercial Workers, Wine Distillery and Allied Worker, Local 186D union, according to a National Labor Relations Board filing.

Gallo purchased the Turner Road facilities successful 2021 from Constellation Brands, which successful 2001 had acquired the facilities from the iconic Sebastiani vino family.

The Turner Road West grape crush installation serves growers who don't person their ain accumulation operations.

Gallo closed different facilities

Gallo has been reducing its holdings this year, which has included the closing of its Ranch Winery successful St. Helena, Calif., and laying disconnected each 56 by April 15, 2026, according to a Worker Adjustment and Retraining Notification announcement it filed with the California Employment Development Department on Feb. 12.