Closure of Gallo Winery Production Facility

Gallo, the leading winemaker, has announced the shutdown of a significant production site in Napa Valley, resulting in nearly 100 job cuts across Napa and Sonoma counties. This decision reflects a notable shift in how alcohol is consumed in the United States.

On February 12, Gallo, noted as the world’s largest winemaker by output, filed a notification with the California Employment Development Department, revealing the permanent closure of its Ranch winery located in St. Helena.

This closure means that 56 employees will be laid off by April 15.

Additionally, the company is reducing roles at several other famous labels, such as the Louis M. Martini Winery and Olin Swift Tasting Room in St. Helena, along with J. Vineyards and Fry Ranch in Healdsburg. Altogether, these changes will impact 93 jobs in an area renowned for wine and tourism.

It’s worth noting that Gallo has been downsizing lately. Just last year, in 2025, the company closed Courtside Cellars, a sizeable 300,000-square-foot production facility situated in San Luis Obispo County, leading to the layoffs of 47 workers.

Interestingly, a Gallup poll from August 2025 indicated that only 54% of American adults reported consuming alcohol, suggesting a potential decline in alcohol consumption overall.

“Gallo is aligning certain aspects of our business with our long-term strategy to ensure we’re well-positioned for future success,” a spokesperson mentioned.

They further added, “In this process, we’ve made the tough call to cut operations in particular wine country locations. These shifts stem from market dynamics, changing consumer demands, and the production capacity we have across our wineries.”

Moreover, the spokesperson assured that all employees affected by these closures are being offered “individualized support, transition packages, and opportunities to look into other roles” at the company.

According to a recent report by Wine Business Monthly, the number of wineries in California shrunk from 4,727 in 2025 to 4,646 as of February 2026.