E. & J. Gallo announces the closure of one of its main production sites in Napa Valley and an overall reduction of 93 jobs across Napa and Sonoma County. In the same weeks, Vermeil Wines announced the closure of its tasting room in downtown Napa. Two decisions impacting employment and wine tourism in California’s Wine Country.
E. & J. GALLO CLOSES THE RANCH WINERY IN ST. HELENA
The Modesto-based group, among the world’s largest wine producers by volume, notified the California Employment Development Department of the permanent closure of The Ranch Winery, a production facility located in St. Helena, Napa Valley. Operations will cease by April 15. Fifty-six layoffs are expected at the facility.
The reorganization also involves other group entities in Napa and Sonoma County. The cuts affect Louis M. Martini Winery and the Orin Swift Tasting Room in St. Helena, as well as J Vineyards and Frei Ranch in Healdsburg. A total of 93 positions are being eliminated across the two counties. In 2025, the company had already closed Courtside Cellars, a production facility of approximately 28,000 square meters in San Luis Obispo County, with 47 layoffs.
CORPORATE STATEMENTS AND US WINE MARKET TRENDS
In an official statement, a spokesperson explained: “Gallo is realigning parts of its business with its long-term corporate strategy to ensure a solid position for the future.” They added: “As part of this process, we have made the difficult decision to scale back some operations in Wine Country. These changes are driven by market dynamics, evolving consumer demand, and available capacity in our wineries.”
According to the announcement, affected employees will be offered personalized support, transition packages, and the opportunity to apply for other positions within the group. These decisions come during a period of declining consumption. A Gallup poll from August 2025 indicates that 54% of US adults report consuming alcohol. In 2025, there were 4,727 wineries in California. By February 2026, that number dropped to 4,646, according to industry data.
VERMEIL WINES CLOSES DOWNTOWN NAPA TASTING ROOM
On January 31, Vermeil Wines’ tasting room in downtown Napa also closed. The company announced it on its official channels: “After nearly 15 unforgettable years, we are sharing an important update: we will be closing our Downtown Napa Tasting Room on January 31.”
The message also reads: “As one of the first tasting rooms to open its doors in downtown Napa, this space has been home to countless memories, friendships, and shared glasses.” It continues: “Saying goodbye isn’t easy, but the time has come to open a new chapter.” The winery explained its intent to adapt its model to the evolving wine market. Operations will continue through the wine club, with priority access to new releases and special selections for members.
Personalized tastings also remain available at one of Thomas Rivers Brown’s wineries in St. Helena. Founded in 2007 by former NFL coach Dick Vermeil, a Calistoga native, Vermeil Wines bottled its first vintage of Jean Louis Vermeil Cabernet Sauvignon in 1999, the year Vermeil led the St. Louis Rams to victory in Super Bowl XXXIV.
