G-3 Enterprises, a California-based logistics company founded by the family behind E. & J. Gallo Winery, has laid off 66 employees in its wine cap closure operations. The company cited "significant headwinds" and "changes in customer purchasing patterns and production volumes" as reasons for the restructuring, according to an email from Laura Bream, vice president for human resources.
These layoffs occur as national alcohol consumption trends show a decline. A 2025 Gallup poll indicated that a record-low 54% of Americans reported consuming alcohol, with 46% abstaining. This marks the largest percentage of non-drinkers recorded since the poll began in 1939. Pollsters suggested this trend may be linked to recent research highlighting potential negative health effects of alcohol consumption, a departure from earlier recommendations that suggested moderate drinking could offer protective benefits.
Rob McMillan, a wine business analyst at Silicon Valley Bank, acknowledged a broad consumer shift impacting the entire wine industry, not just in California. This trend has been particularly noticeable among younger generations, such as Gen Z and millennials, who have shown less interest in wine. One California winery owner suggested that the decline is partly due to the aging out of the Baby Boomer generation, historically the largest consumers of wine, and the insufficient uptake by younger demographics.
The California wine sector has seen other impacts, including winery closures in Napa and Sonoma counties this year. Despite these challenges, McMillan anticipates the industry will eventually stabilize.
The affected G-3 Enterprises employees in wine cap closure operations are expected to be laid off between October 6 and December 31. The company is a wine, alcohol, and food logistics provider and was founded by the family of E. & J. Gallo Winery, the largest winery in the United States.