The California wine industry is facing significant turbulence.
Bronco Wine Company, known for Trader Joe’s “Two Buck Chuck,” is closing a production facility in the Central Valley, laying off 81 workers, and cutting staff at its Napa Valley bottling center, citing a “significant downturn.” This comes amidst a broader trend of declining wine sales, with many major producers seeing drops in volume.
However, Bronco is also expanding. They’ve acquired the assets of Wine Hooligans, including brands like Portlandia and Shortbread, and say they’ll retain most of its employees. Industry experts say this acquisition is a sign of the times, with more mergers and acquisitions expected as companies grapple with challenging market conditions.
While some established brands remain attractive to buyers, others are struggling to find their footing. This shake-up reflects a shifting landscape for California wineries.
