Gallo, a major wine manufacturer, announced the closure of a large Napa Valley production facility and the elimination of nearly 100 jobs across Napa and Sonoma counties — a stark sign of the shifting landscape around alcohol consumption in America.
Considered the world’s largest winemaker by volume, Gallo filed a “warning” notice with the California Employment Development Department on Feb. 12, confirming it will permanently pull the cork on the Ranch Winery in St. Helena.
Wine glasses with different wines paired with a picnic basket of treats, including cheese, salami, duck rillette, truffle popcorn, and wild mushroom and truffle pizza. Los Angeles Times via Getty Images
UFW president Arturo Rodriguez (right) speaks as Gallo wine is poured Wednesday, Sept. 14, 2005, in San Francisco. AP
A selection of Gallo Family Sonoma Reserve wines, including Pinot Gris, Chardonnay, Cabernet Sauvignon, Merlot, Zinfandel, Pinot Noir, and Syrah. BLOOMBERG NEWSThe closure will leave 56 workers high and dry by April 15.
Gallo is also slashing staff at some of its other prestigious labels, including the Louis M. Martini Winery and the Orin Swift Tasting Room in St. Helena, as well as J Vineyards and Frei Ranch in Healdsburg. The moves will impact a total of 93 jobs in a region synonymous with luxury wines and tourism.
The Modesto-based giant has been on a downsizing tear lately. In 2025, it closed Courtside Cellars in San Luis Obispo County, a 300,000-square-foot production facility, and let 47 workers go.
The percentage of American adults who say they consume alcohol has fallen to 54%, according to an August 2025 Gallup poll.
Gallo is the worlds largest winemaker by volume. Timon Schneider/SOPA Images / Shutterstock
A large sign reads “Welcome to this world famous wine growing region Napa Valley” next to a smaller sign bearing a quote from by Robert Louis Stevenson. Anadolu via Getty Images“Gallo is aligning parts of our operations with our long‑term business strategy to ensure we remain well‑positioned for future success,” a spokesperson for the company told The Post.
“As part of this process, we made the difficult decision to reduce certain Wine Country operations. These changes are driven by market dynamics, evolving consumer demand, and available capacity across our wineries.”
Wine barrels in the cellar of a winery in Napa Valley, California. Alamy Stock PhotoAccording to the spokesperson, all employees who are being affected by the closure are receiving “personalized support, transition packages, and opportunities to explore other roles” within the company.
According to a recent report from Wine Business Monthly, there were 4,727 wineries in California in 2025. As of February 2026, there are 4,646.
