California wine giant Gallo announces another facility closure, layoffs

Modesto-based alcohol producer and distributor Gallo announced it will close one of its facilities and lay off 20 workers, industry publication Wine Business reported, the latest in a string of shutdowns the company has enacted during a troubling period for the wine industry.

A spokesperson for Gallo, the country's largest wine company, said the closure of its Lodi (San Joaquin County) crush facility - a production house that turns grapes into wine for growers lacking their own facilities - "reflects available capacity in our other wineries in the region."

Laid-off workers had been "individually notified" and were receiving support from the company, the spokesperson said.

The closure of Gallo's crush facility on West Turner Road is one of a string of recent shutdowns for the alcohol giant. Earlier this year, the company announced the closure of three Bay Area locations, including its Ranch Winery in Helena, causing nearly 100 workers to lose their jobs. The wine giant also shuttered its 300,000-square-foot Courtside Cellars winery in San Luis Obispo County last year.

California's $55 billion wine industry has been in crisis for three years, driven by record declines in American alcohol consumption, growing awareness of alcohol's health risks and the increased popularity of wine alternatives such as hard seltzers.

An industry report published in January by Silicon Valley Bank predicted that U.S. wine sales will continue to decline in 2026, albeit not as steeply as in 2025, then essentially flatline in 2027 or 2028.

Analysts predict at that point the industry will begin to recover, with Napa and Sonoma counties improving more rapidly than other wine-growing regions of the U.S.

Copyright 2026 Tribune Content Agency. All Rights Reserved.

This story was originally published June 7, 2026 at 7:10 PM.