California’s wine industry is experiencing a significant shift as another major player exits the scene.
The renowned wine-producing region is seeing its fourth closure since the beginning of 2026, with industry giant Jackson Family Wines ceasing operations at a key facility.
The company has halted activities at its Carneros Hill site, located in Sonoma’s Carneros area, and has laid off over a dozen workers, as per a Worker Adjustment and Retraining Notification submitted to California officials on February 12.
Sean Carrol, the communications director, informed the SF Chronicle that the Carneros Hill location, previously under Buena Vista Winery’s ownership, was used primarily for excess production and wasn’t linked to any specific brand.
Carrol mentioned that the facility had become “underutilized,” prompting the company to streamline operations.
Jackson Family Wines holds a prominent position as one of the leading wine producers in the United States, ranking as the sixth largest wine company nationwide.
It owns the Kendall-Jackson label and about 40 other brands, producing around six million cases a year, according to an industry review. More than 25 of those wineries are in the Golden State.
Last week, major winemaker Gallo announced the closure of a large production facility and the elimination of nearly 100 jobs across the wine growing region of Napa and Sonoma counties.
Considered the world’s largest winemaker by volume, Gallo filed a “warning” notice with the California Employment Development Department on Feb. 12, confirming it will permanently pull the cork on the Ranch Winery in St. Helena.
Gallo is also slashing staff at some of its other labels, including the Louis M. Martini Winery and the Orin Swift Tasting Room in St. Helena, as well as J Vineyards and Frei Ranch in Healdsburg.
“Gallo is aligning parts of our operations with our long‑term business strategy to ensure we remain well‑positioned for future success,” a spokesperson for the company told The Post.
“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.”
Earlier this month, Foley Family Wines & Spirits shut down its production facility for the historic Central Coast winery Chalone.
In January, Constellation Brands notified more than 200 people at the Mission Bell Winery in Madera that they would be out of work. And Jean-Charles Boisset Collection closed two Napa Valley tasting rooms.
According to a recent report from Wine Business Monthly, there were 4,727 wineries in California in 2025. As of February 2026, there are 4,646.
The number of American adults who say they consume alcohol has fallen to 54%, according to an August 2025 Gallup poll.
