Wine giant Gallo to lay off 90, shut down a key Napa facility - Los Angeles Times

Los Angeles Times

by Iris Kwok

February 20, 2026

AI-Generated Deep Dive Summary

California wine giant Gallo is making significant operational changes, including laying off 93 employees across five sites and closing its Ranch Winery in St. Helena. These moves come as part of the company's adaptation to market dynamics and shifting consumer preferences, particularly among younger generations who prioritize quality over quantity. The closure of the Ranch Winery, which Gallo purchased in 2015 to expand its presence in the premium wine segment, marks a strategic pivot away from bulk production. Layoffs are also planned at other facilities, including Louis M. Martini Winery and J Vineyards & Winery. The broader U.S. wine industry is facing challenges as consumers increasingly favor premium wines over budget-friendly options like those in the sub-$12 category, which has struggled for years. Additionally, the aging of baby boomers, who have been a key market, and declining alcohol consumption among younger generations have compounded the industry's struggles. Gallo's decision reflects a broader trend in the sector, with companies like Courtside Cellars also closing in recent years. Gallo, the largest wine supplier in the U.S., owns over 100 brands, including Barefoot and Apothic, and employs thousands globally. While the company has diversified its portfolio to include spirits and ready-to-drink cocktails, these changes highlight the ongoing challenges of adapting to evolving consumer tastes and market competition. The layoffs and closures underscore the shifting landscape of the wine industry, with a growing emphasis on quality and premium products. This news is significant for readers interested in business trends, labor issues, and the state of the U.S. wine industry. It also reflects broader economic shifts, including the impact of trade policies and changing consumer behaviors. Gallo's strategic adjustments aim to position the company for long-term success, but the layoffs and closures signal a challenging period for its workforce and the industry as a whole.

Verticals

newscalifornia

Originally published on Los Angeles Times on 2/20/2026