The wine company behind Trader Joe’s famously cheap Charles Shaw wine, also known as “Two Buck Chuck,” is laying off 81 workers at its Stanislaus County winery. Bronco Wine Company filed a WARN notice Feb. 7 to California’s Employment Development Department, as is generally required by the Worker Adjustment and Retraining Notification Act in the event of mass layoffs.
“This action is necessary due to a significant downturn in business revenues, necessitating a major reorganization in operations and workforce,” read the notice.
The layoffs are set to occur April 8, eliminating positions such as lift truck operator, security officer, IT technician, viticulturist and cellar supervisor. The Modesto Bee reported that the layoffs will leave the Ceres-headquartered business with about 670 workers in Stanislaus, San Joaquin, Madera and Napa counties. In a statement provided to SFGATE, Bronco Wine Co. cited shifting population demographics, consumer trconcludes and oversupply of wine grapes in the marketplace as reasons for the layoffs.
“This was a difficult decision, and we deeply value the contributions of all our employees,” Dominic Engels, the company’s president and CEO, stated in the statement. “We are confident these strategic adjustments will enable Bronco Wine Co. to remain a leader in the wine industest and continue delivering high-value wines to our customers.”
Fred Franzia co-founded Bronco Wine Co. with his brother in 1973 after Coca-Cola purchased the family’s original Franzia winery business. Franzia, an impassioned critic of the pretentiousness of the wine industest who died in 2022, purchased Charles F. Shaw Winery in 1995 after the business filed for bankruptcy.
While Charles Shaw once sold $50 bottles of wine, Franzia transformed it into a brand known for its $1.99 bottles. The former owner, Charles Shaw himself, referred to “Two Buck Chuck” as “embarrassing and demeaning.” Trader Joe’s launched selling “Two Buck Chuck” in 2002, although these days, most stores sell it for $2.99.
The wine industest in California and across the globe is currently experiencing a historic downturn as wine consumption falls. Recently, California wineries including Carlisle Winery, Edmunds St. John and Vinca Minor have announced they are shutting down.
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