E.J. Gallo closes historic winery facility, lays off staff
Lower wine consumption since 2020 has forced major wine companies like E. & J. Gallo to shut down facilities and lay off employees.
The industry's annual revenue has declined by $19.7 billion, or 21%, to $74.3 billion in 2025 since generating $94 billion in 2020, according to Silicon Valley Bank's State of the US Wine Industry Report.
"Boomers are drinking less, and there are fewer of them every day," wrote Rob McMillan, executive vice president and founder of the Silicon Valley Bank Wine Division, which is a division of First Citizens Bank.
"They are replaced by the younger cohorts who aren't as much in love with wine as their elders," McMillan, author of Silicon Valley Bank's State of the US Wine Industry Report, wrote.
Gallo Winery closes crush facility
The largest U.S. wine company E.J. Gallo Winery said it will close its Turner Road West grape crush facility in Lodi, Calif., which a winery co-op originally opened in 1946, and lay off about 20 workers at the site, Wine Business reported.
Gallo will continue operating its Tetra Pak blending and bottling, as well as finished good distribution, at its nearby Turner Road East facility in Lodi.
The wine company had recently added a 200-milliliter Tetra line at Turner Road East.
"Gallo has decided to suspend crush operations at its Turner Road location," E.J. Gallo said in a statement. "This decision reflects available capacity in our other wineries in the region."
"Impacted employees have been personally notified and are receiving individualized transition support, including the opportunity to explore other roles within the organization."
Workers voted for union
The closure announcement comes just weeks after 37 of the company's 43 eligible employees at 5852 West Turner Road in Lodi on May 20, 2026, voted in favor of union representation by the United Food Commercial Workers, Wine Distillery and Allied Worker, Local 186D union, according to a National Labor Relations Board filing.
Gallo purchased the Turner Road facilities in 2021 from Constellation Brands, which in 2001 had acquired the facilities from the iconic Sebastiani wine family.
The Turner Road West grape crush facility serves growers who don't have their own production operations.
Gallo closed other facilities
Gallo has been reducing its holdings this year, which has included the closing of its Ranch Winery in St. Helena, Calif., and laying off all 56 by April 15, 2026, according to a Worker Adjustment and Retraining Notification notice it filed with the California Employment Development Department on Feb. 12.
Gallo also filed WARN notices to lay off 37 other employees by April 15 at four of its wine facilities, including Louis M. Martini Winery and Orin Swift Tasting Room in St. Helena, Calif., and J Vineyards & Winery and Frei Ranch in Healdsburg, Calif.
"Gallo is aligning parts of our operations with our long-term business strategy to ensure we remain well positioned for future success," the company said in a statement reported by the San Francisco Chronicle.
"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," the statement said.
Winemaker sold wineries
The wine industry downturn since 2020 led Gallo to close Courtside Winery in San Miguel, Calif. in July 2025, according to the Chronicle. The wine company also sold its Wild Horse Winery in Templeton, Calif., and its Edna Valley facility in San Luis Obispo, Calif., in 2024.
Gallo's business since 2020 hasn't been all about divesting as it also purchased Four Roses Bourbon for $775 million in early February 2026, The Spirits Business reported. It also purchased Gen Z-inspired winery, Whiny Baby, in September 2025, VinePair reported.
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This story was originally published June 9, 2026 at 1:13 PM.