One of the largest wine suppliers in the U.S. is shuttering a vineyard and laying off 93 employees across various locations as it better positions its business amid falling alcohol consumption
E & J Gallo Winery, which owns brands including Barefoot and Apothic, is closing its Ranch Winery in Saint Helena, California, in April, according to a WARN notice filed with the state. The closure of the production facility impacts 56 workers.
In addition, the company is laying off approximately two dozen workers at a handful of other locations across California, including 15 workers at another winery in Saint Helena and two more at its nearby tasting room. Gallo is also cutting 11 workers at its Healdsburg winery and nine at its Frei Ranch facility. These layoffs are effective in April.
The broader wine market has been challenged by an aging consumer base and consumption declines, according to IWSR. Companies also have faced challenges in recruiting younger, legal drinking-aged consumers. As demand stagnates, Gallo is aiming to bring production more in line with demand and position itself for “future success,” a spokesperson said in an email.
Gallo’s tasting rooms in Napa, Sonoma and Paso Robles will remain open, the spokesperson added.
“These changes are driven by market dynamics, evolving consumer demand, and available capacity across our wineries,” the spokesperson said.
Privately held and family-owned Gallo was established in 1933 and is headquartered in Modesto, California. In addition to wine, the company also makes ready-to-drink and malt beverages, distilled spirits and beer.
WineBusiness monthly places Gallo as the largest winery in the U.S., with an estimated annual case sales volume of 94 million.
Gallo is best known for its affordable wines, which have been hit hard by slumping sales and increased competition from spirits and canned cocktails. Wines under $12 struggled the most in 2025, according to Silicon Valley Bank, pushing production levels to their lowest mark in more than a decade.
