Madera winery facing possible layoffs as contract to make box wine ends
AI-generated summary reviewed by our newsroom.
- Mission Bell faces closure of boxed-wine contract with Gallo, operations uncertain
- Constellation ends transition contracts, prompting layoffs affecting about 200-300 workers
- Madera County mobilizes assistance as local economy faces multiple plant closures
The future of a long-running Madera winery is uncertain after it’s contract to produce a boxed wine for Gallo Winery is ending.
Mission Bell Winery, founded in 1919 by farmer and entrepreneur Krikor Arakelian, has been a mainstay in the San Joaquin Valley’s wine industry. At one time, the company employed 400 people and bottled about 10 million cases of wine a year, according to the Madera County Economic Development Commission.
But over the years, ownership of the winery has shifted from local to corporate. In 2020, the owner of the winery, the New York-based Constellation Brands, divested itself of several mainstream wine and spirit brands to the Gallo Winery. Included in that deal was Mission Bell.
As part of their agreement, Constellation entered into “transitionary supply contracts” with Gallo for the making, cellaring and storing its Black Box brand at the Mission Bell winery, said company spokesperson, Bethany Burke.
“Gallo and Constellation have come to an agreement to end these contracts, so we are taking necessary steps to optimize our operations to support our future production needs at this facility,” Burke said. “This will unfortunately impact a number of roles within our Mission Bell operations. We are committed to supporting impacted employees throughout this process in transitioning to other opportunities either within or outside the company.”
About 200 workers will be out of a job, according to KMPH Fox 26. Burke did not respond to a question about how many workers will be affected. The company is expected to end production of the boxed wine by the end of March.
Kristina Gallagher, executive director of the Madera County Economic Development Commission, said that while the full impact of the layoffs is still unknown, the county is ready to assist impacted employees.
Madera County Supervisor David Rogers estimates the job loss could reach about 300. County officials received word Thursday of a second manufacturing company expected to be shuttering its plant with about 100 workers.
“This is a challenging situation for those directly impacted, and I want to assure them that Madera County is prepared to help during this transition. The affected employees have played an important role in our local economy, and their skills remain valuable,” Rogers said.
Constellation Brands is one of the leading beverage companies in the world with more than 100 brands in its portfolio and operating in approximately 80 countries. It also has about 40 facilities and employs about 8,000 people.
Privately owned, Gallo was founded in 1933 by brothers Ernest and Julio Gallo, and is a global leader in wine, spirits, malt beverages and ready-to-drink beverages.
