E&J Gallo to close SLO County winery, lay off workers. Why?
AI-generated summary reviewed by our newsroom.
- E&J Gallo will close Courtside Cellars in San Miguel on Sept. 8, 2025.
- Company cites reduced coastal demand and excess production capacity elsewhere.
- Closure follows sales of multiple Central Coast properties in past two years.
E&J Gallo is closing yet another of its San Luis Obispo County properties as it continues to withdraw from the Central Coast.
Gallo is expected to permanently close Courtside Cellars in San Miguel and lay off 47 workers on Sept. 8, according to a recent Worker Adjustment and Retraining Notification from the California Employment Development Department.
Companies are required to give 60-day notice to impacted employees and the state before a plant closes or a mass layoff.
The company purchased the San Miguel winery, located at 2425 Mission St., in 2012, at a point when what has been called the “world’s largest winery” was expanding its local operations.
Now however, it’s looking to cut back that footprint, citing a decreased demand for coastal production.
“Due to reduced demand for Coastal production and available capacity elsewhere in the company, fewer wineries are needed on the Coast,” Gallo director of corporate communications and public relations Krista Fontana told The Tribune.
Fontana said impacted employees were notified in early 2025 of the decision to shutter the winery and “are receiving personalized support.”
“Gallo is also offering transition packages and encouraging employees to explore other opportunities within the company,” she added.
‘World’s largest winery’ has been selling off Central Coast properties
The closure comes roughly a year after Gallo sold its Edna Valley Vineyard and Winery property on the outskirts of San Luis Obispo — but elected to keep producing wines under the Edna Valley label.
At the time, Fontana told The Tribune that decision was the result of an assessment of the company’s portfolio to “ensure we are operating as effectively as possible.”
Headquartered in Modesto, E&J Gallo sources grapes from throughout California and the United States, as well as some other international locales.
Its portfolio includes brands like Apothic, Barefoot, La Marca, Manischewitz, Prophecy, Proverb, Talbott Vineyards and more.
Over the years, it bought up properties throughout the Central Coast, starting with the 2004 purchase of Bridlewood Estate Winery in Santa Barbara County and the 2007 purchase of William Hill Estate Winery in Napa.
It acquired its first San Luis Obispo County property in 2011 with Edna Valley Vineyard, followed the next year with Courtside Cellars. It later acquired Wild Horse Winery in 2019 and Denner Vineyards in Paso Robles in 2022.
That spate of purchases culminated in Gallo being the sixth largest property taxpayer in the county in the 2022-23 fiscal year.
But since then, the company has taken a step back from the region.
Before it sold Edna Valley Vineyard, Gallo also sold Wild Horse Winery to Continental Wine Collection for $8 million in March 2024, according to WineBusiness.com.
That leaves it with only Denner Vineyards in San Luis Obispo County, as well as its other properties throughout the larger Central Coast area.
Fontana said the Courtside closure will not impact the company’s Talbott Vineyards tasting room in Carmel, nor will it impact other Gallo brands or production sites.
This story was originally published July 24, 2025 at 2:47 PM.
%20Cropped.jpg)