Another California wine giant shuts site and axes staff as chaos rips across Napa Valley
California’s wine industry is facing closures and staff reductions.
Another prominent player in the wine-growing region has ceased operations, marking the fourth closure since the beginning of 2026.
Jackson Family Wines has halted production at its Carneros Hill facility in Sonoma’s Carneros region, resulting in more than a dozen layoffs, as reported in a Worker Adjustment and Retraining Notice filed with California authorities on February 12.
According to communications director Sean Carrol, Carnero’s Hill, previously owned by Buena Vista Winery, was used as overflow production capacity and was not associated with any specific brand.
Carrol mentioned that the site had become underutilized, leading the company to consolidate its operations.
Jackson Family Wines is recognized as one of the top US wine producers and ranks as the sixth-largest wine company in the country.
The company owns the Kendall-Jackson label and approximately 40 other brands, producing around six million cases annually, with over 25 wineries in California.
Recently, major winemaker Gallo also announced the closure of a large production facility and the elimination of nearly 100 jobs across Napa and Sonoma counties.
Gallo, known as the world’s largest winemaker by volume, disclosed its decision to permanently close the Ranch Winery in St. Helena.
Gallo is also reducing staff at some of its other labels, including the Louis M. Martini Winery, Orin Swift Tasting Room, J Vineyards, and Frei Ranch.
Regarding these changes, a spokesperson for Gallo stated, “Gallo is aligning parts of our operations with our long-term business strategy to ensure we remain well-positioned for future success.”
Earlier in the month, Foley Family Wines & Spirits closed its production facility for the historic Central Coast winery Chalone.
Other closures in the industry include Constellation Brands notifying over 200 employees at the Mission Bell Winery in Madera, and Jean-Charles Boisset Collection closing two Napa Valley tasting rooms.
According to a recent report from Wine Business Monthly, the number of wineries in California decreased from 4,727 in 2025 to 4,646 in February 2026.
The percentage of American adults consuming alcohol has also declined to 54%, as per an August 2025 Gallup poll.
