The world’s largest winemaker is planning to shut down a facility in California’s wine country amid a recent survey showing a decline in alcohol consumption among Gen Z.
Gallo, the largest wine producer in the world by volume, plans to close down one of its facilities in California, U.S.
The company made the announcement on Feb. 12, and the cuts will be effective by Apr. 15.
“Gallo is aligning parts of our operations with our long-term business strategy to ensure we remain well-positioned for future success. […],” it said.
“As part of this process, we made the difficult decision to reduce certain wine country operations. These changes are driven by market dynamics, evolving consumer demand and available capacity across our wineries,” the company added.
Almost 100 workers are being laid off at several wineries and tasting rooms in Napa County and Sonoma County, regions known for luxury wine tasting and tourism.
Employees will receive support and opportunities within the company.
Gallo was founded in 1933 by two brothers and is the largest family-owned winery in the U.S., owning over 100 different wine labels.
From 1997 to 2023, at least 60 per cent of Americans reported drinking alcohol but that percentage has fallen to 54 per cent, according to an August 2025 Gallup poll.
Gen Z Amy C., living in the U.S. said, “I don’t really see people drinking wine like my age. It’s either like tequila or like vodka.”
Another Gen Z Kelly L said, “It definitely damages your liver early stage. Like you become like an alcoholic.”
Non-alcoholic wine and beverages have entered the market, displayed alongside vintage wines at major trade shows in Paris, France.
Katja Bernegger, Founder & CEO of Zeronimo Wine said people are more cautious about consuming alcohol nowadays.
“It’s a growing market and I would say it’s not a trend. It’s here to stay,” she said.
“As people are more mindful of their body, people are more watching about the consequences of alcohol. If you drink today, you probably have a headache tomorrow. And they don’t want it because you need to function.”
“You have kids, you have a job. So yeah, it’s a performance society. So more and more mindfulness is becoming an issue and it will stay,” Bernegger added.
