Gallo terminates Lodi crush facility as California wine downturn deepens

Modesto-based wine producer E. & J. Gallo Winery will close its crush facility in Lodi, California, resulting in the loss of approximately 20 jobs, according to industry reports. The facility on West Turner Road provides grape-crushing and winemaking services for growers who do not operate their own production facilities.

A company spokesperson said the closure reflects available capacity at Gallo’s other wineries in the region and is part of ongoing operational adjustments. Employees affected by the shutdown have been notified individually and are receiving support from the company.

The move marks the latest in a series of facility closures by Gallo amid prolonged market challenges in California’s wine industry. Earlier this year, the company announced the closure of three Bay Area facilities, including its Ranch Winery in Helena, affecting nearly 100 workers. In 2025, Gallo also shut down its 300,000-square-foot Courtside Cellars winery in San Luis Obispo County.

California’s wine sector, valued at roughly USD 55 billion, has struggled for several years amid declining alcohol consumption in the United States, growing consumer awareness of alcohol-related health risks, and increased competition from alternative beverages such as hard seltzers and ready-to-drink products.

Industry forecasts indicate the downturn is likely to continue through 2026, although at a slower pace than in 2025. Analysts expect wine sales to stabilize by 2027 or 2028, with premium-producing regions such as Napa Valley and Sonoma County expected to recover more quickly than other U.S. wine-growing areas.

Source: San Francisco Chronicle