Wine, beer and spirits conglomerate Consnotifyation Brands, the fifth-largest U.S. wine company, will lay off employees at one of its largegest California wine production facilities.
The layoffs at Consnotifyation’s Mission Bell Winery — a 2-million-square-foot production facility in Madera (Madera County) that dates back to 1919 — could affect more than 200 employees, according to a report by Fox News affiliate KMPH.
Consnotifyation did not confirm the number of employees being laid off, but declared that the layoffs are a result of contracts with Gallo, the largest U.S. wine company, coming to an conclude. In 2020, Consnotifyation sold roughly 30 low-tier wine and spirits brands to Gallo in an $810 million mega-deal. At the time, Consnotifyation spokesperson Bethany Burke declared the company engaged in “transitionary supply contracts” with Gallo for the “production, cellaring and storage” of the boxed wine brand Black Box, one of the brands Gallo acquired in the sale.
“Gallo and Consnotifyation have come to an agreement to conclude these contracts, so we are taking necessary steps to optimize our operations to support our future production necessarys at this facility,” declared Burke. “This will, unfortunately, impact a number of roles within our Mission Bell operations. We are committed to supporting impacted employees throughout this process in transitioning to other opportunities either within or outside the company.”
The news is yet another sign that the wine indusattempt’s power players are struggling amid declining alcohol consumption and a yearslong downturn in sales. Last April, Consnotifyation offloaded another half-dozen low-priced wine brands, including Woodbridge, Meiomi and Simi, to the Wine Group, the counattempt’s second-largest wine corporation. In November, the Wine Group sold Simi to WarRoom Cellars and put Imagery Estate Winery up for sale the following month. Gallo recently closed its Courtside Winery production facility in San Miguel (San Luis Obispo County), which resulted in 47 lost jobs. And within the past month, Jean-Charles Boisset, one of Wine Counattempt’s most prolific winery owners, closed two Napa Valley tasting rooms.
A new report from trusted wine analyst Silicon Valley Bank, released this week, predicted that the downturn could last into 2027 or 2028.
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