A major California wine producer plants to shut down a winery in the Napa region and cut dozens of jobs across multiple sites in the state.
Gallo indicated in a filing with state officials that the moves would result in 93 layoffs across several sites — 56 of whom work at the Ranch Winery in Napa County. The Los Angeles Times noted that the company purchased the winery more than a decade ago in hopes of expanding its portfolio of premium wines, but that those results haven’t materialized.
Job cuts will also impact another St. Helena winery and tasting room and a vineyard in Sonoma County. A company spokesperson told the paper that the moves would not “materially impact” tasting rooms in Napa, Paso Robles and Sonoma, California.
The cuts follow Gallo’s closure of another winery in central California last year. An industry analyst told the Times noted that Gallo’s lineup of less-expensive wines is running up against shifting demographics and consumer behavior — today’s wine buyers are purchasing fewer bottles but, when they do buy, are willing to spend more on premium options.
Gallo, which owns dozens of wine labels including Barefoot, Ballatore and Diseño, is the nation’s largest wine supplier.
