Bronco Wine Company, the producer of the well-known Charles Shaw wine, commonly referred to as “Two Buck Chuck,” has announced plans to lay off 81 employees. The company filed a legally required Worker Adjustment and Retraining Notification (WARN) notice on February 7, informing the state of the upcoming job cuts.
The affected employees all work at the company’s Stanislaus County winery. According to the company, these layoffs are part of a strategic restructuring effort aimed at improving efficiency and addressing ongoing industry challenges.
Reasons for the Workforce Reduction
Bronco Wine Company cited multiple factors influencing its decision, including economic conditions, changing consumer preferences, and an oversupply of wine grapes. In its statement, the company explained that declining business revenues have made reorganization necessary.
Among the positions being eliminated are a lift truck operator, a security officer, an IT technician, a viticulturist, and a cellar supervisor. The layoffs are set to take effect on April 8, impacting employees across various departments.
Following the layoffs, Bronco Wine Company will have approximately 670 employees remaining at its locations in Stanislaus, Madera, Napa, and San Joaquin counties. Despite the job reductions, company leadership remains confident that these changes will help sustain the business. CEO Dominic Engels stated that while the decision was difficult, the restructuring will allow the company to remain competitive and continue providing affordable wines to consumers.
Bronco Wine Company and the Charles Shaw Legacy
Bronco Wine Company was founded in 1973 by Fred Franzia and his brother after their family’s original wine business, Franzia, was sold to Coca-Cola. In 1995, the company acquired the bankrupt Charles F. Shaw Winery and introduced the low-cost “Two Buck Chuck” wines, which became a major success at Trader Joe’s.
However, the original Charles Shaw was displeased with the use of his name, calling it “embarrassing and demeaning,” as his previous wines were high-end and sold for up to $50 per bottle.
Bronco Wine Company is not the only winery facing difficulties. Wine consumption has been on the decline, and producers worldwide are feeling the effects. Several California wineries, including Carlisle, Edmunds St John, and Vinca Minor, have recently announced their closures due to similar financial pressures. As consumer habits shift and the industry experiences supply and demand imbalances, winemakers are being forced to adapt in order to survive.