Major Wine Producers Shutter Facilities Across Napa Valley

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Several major wine producers in California's Napa Valley have announced the closure of production facilities and significant job cuts in recent weeks. Jackson Family Wines, Gallo, Foley Family Wines & Spirits, and Constellation Brands have all shuttered sites and laid off workers, citing market dynamics, evolving consumer demand, and available capacity across their operations.

Why it matters

The closures and layoffs in the Napa Valley wine industry point to broader challenges facing the sector, including declining alcohol consumption among American adults and oversupply issues. The changes highlight the volatility and competitiveness of the wine market, especially for larger producers reliant on economies of scale.

The details

Jackson Family Wines has stopped production at its Carneros Hill facility in Sonoma's Carneros region, laying off more than a dozen employees. Gallo announced the closure of its large Ranch Winery in St. Helena, eliminating nearly 100 jobs, and is also slashing staff at some of its other labels. Foley Family Wines & Spirits shut down its production facility for the historic Central Coast winery Chalone, while Constellation Brands notified more than 200 people at the Mission Bell Winery in Madera that they would be out of work.

• On February 12, 2026, Jackson Family Wines filed a Worker Adjustment and Retraining Notice with California authorities regarding the Carneros Hill facility closure and layoffs.
• On February 12, 2026, Gallo filed a 'warning' notice with the California Employment Development Department on the closure of the Ranch Winery in St. Helena and staff reductions at other facilities.