Major U.S. Wine Supplier Announces Layoffs and Potential Closure of Key Napa Facility

California’s largest wine producer, Gallo, is set to lay off over 90 employees while closing a prominent Napa Valley wine-making facility, a move aimed at adapting to evolving market demands. The company announced on Thursday that 93 positions across five sites would be eliminated as part of these operational changes.

Among the affected facilities, the Ranch Winery in St. Helena will shut down. Gallo acquired this winery in 2015 with aspirations to enhance its offerings in the super-premium and luxury wine segments, a venture that has not yielded desired results. The closure will impact 56 roles, including many wine technicians, with job losses slated to occur from April 15 to January 2027.

Further layoffs will occur at associated wineries, including Louis M. Martini and Orin Swift Tasting Room in St. Helena, along with J Vineyards & Winery and Frei Ranch in Healdsburg. This is not the first time the company has faced such challenges, having previously closed its Courtside Cellars winery and laid off 47 workers in 2025.

These layoffs reflect broader issues facing the U.S. wine industry. Changing consumer preferences have led customers to seek quality over quantity, with many opting for premium products over lower-priced wines that Gallo often offers. The company’s wines, traditionally retailing under $12, have struggled for the past decade as younger generations drink less wine and older consumers gradually age out of the market.

The challenges Gallo faces are exacerbated by increasing competition from premium beers and spirits, as well as foreign wine imports. The sector has also been impacted by political factors, such as tariffs introduced during the prior administration, further complicating the landscape for wine shops and importers.

Founded in 1933, Gallo has transformed into the largest supplier of wine in the U.S., with a portfolio exceeding 100 brands, including Barefoot and Apothic. As of 2023, the company employed over 7,000 people globally and sold approximately 90 million cases of wine in 2025.

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