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Gallo lays off 355 staff across California
E & J Gallo, the largest wine producer by volume in the US, will make hundreds of staff redundant from March, according to documents.
Papers filed with California’s Employment Development Department reveal that EJ & Gallo is planning to make more than 300 staff redundant, effective of 12 March.
The documents were filed on 10 January following the wine giant finalising a deal with Republic National Distribution Co. to manage Gallo’s retail distribution, which was previously looked after in-house.
Earlier this month, the drinks business reported that Republic National Distribution Co. is being sued by Sazerac for refusing to pay millions of dollars worth of invoices.
Republic National, which has been embroiled in a battle with Sazerac for almost a year, took over Gallo’s independent market distribution in 2021.
According to a report by the San Francisco Business Times, Gallo plans to close its own distribution facilities, including its 68,000 square foot warehouse, in March. Layoffs will effect staff at seven different sites around the state.
The company has said that employees will have the chance to interview for similar positions with RDNC or apply for new roles at Gallo.
Many have been left reeling by the news, especially in light of significant successes for EJ & Gallo in the last year.
In January 2021, EJ & Gallo completed one of the biggest acquisitions in US wine history, snapping up 30 low-cost brands from rival company Constellation Brands for US$810 million. According to reports at the time, the move meant that Gallo brands represented almost 30% of all bottles of wine produced in California, making it the biggest wine producer by sales volume in the US.
This year, Gallo has signed a multi-year deal with the NFL to become the football league’s official wine sponsor, which will ensure its visibility before, during and after the game on Sunday 12 February.
The success of its wine brands has also continued to soar around the world and in November it was announced that Barefoot Pinot Grigio had become the best-selling wine in the UK.
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