Bronco Wine Co., the producer of the well-known Trader Joe’s Charles Shaw wine, commonly called “Two Buck Chuck,” has announced over 80 permanent layoffs at its headquarters in Stanislaus County. The company, which has been family-owned since 1973, is known for multiple wine brands.
The layoffs were disclosed under the Worker Adjustment and Retraining Notification (WARN) Act, which mandates employers with 100 or more workers to provide a 60-day notice before mass layoffs or business closures. The affected companies include Bronco Wine Co. and its affiliated entities, Bivio Transport and Logistics Co., LLC, and WC Ag.
Reasons for Layoffs and Impact on Workforce
The layoffs, which will officially take effect on April 8, were filed on February 6. According to reports, Bronco Wine Co. cited a “significant downturn in business revenues,” which has forced the company to reorganize operations and reduce its workforce.
Affected positions include drivers, lift truck operators, mechanics, security officers, cellar supervisors, viticulturists, and microbiology technicians. The layoffs reflect broader challenges in the wine industry, with smaller wineries closing and larger companies also making workforce reductions.
Bronco Wine Co. Announces Over 80 Layoffs Amid Industry Challenges and Declining RevenuesCharles Shaw wine, launched in 2002 at Trader Joe’s, became famous for its affordability, originally selling for $1.99, which earned it the nickname “Two Buck Chuck.” Over time, prices have varied, with some bottles now selling for $3.99.
The brand is part of Bronco Wine Co.’s portfolio, which also includes Rosenblum Cellars, Carmenet, Picket Fence, Crane Lake Cellars, and Longevity Wines. Despite its low price, Charles Shaw wine gained a strong consumer following, helping establish Trader Joe’s as a key player in the budget wine market.
Fred Franzia and the Growth of Bronco Wine Co.
Fred Franzia, the winemaker behind the Charles Shaw brand, passed away in 2022 at the age of 79. He co-founded Bronco Wine Co. in 1973 alongside his brother Joseph and cousin John. Known as the “Bad Boy of California Wine,” Franzia was recognized for his opposition to expensive wines and his strategy of acquiring bankrupt vineyards in the 1980s.
In 1995, Bronco Wine Co. purchased the Charles Shaw name for just $25,000, later using it to launch the now-iconic wine brand in Trader Joe’s stores.
The layoffs at Bronco Wine Co. are part of a broader trend in the wine industry, where several small wineries, such as Carlisle, Tarpon, and Vinca Minor, have closed. Additionally, larger companies, such as Southern Glazer, have reportedly laid off hundreds of employees in recent months. These industry challenges, including declining revenues and shifting consumer preferences, suggest that the wine sector is undergoing significant transformations that could impact businesses of all sizes.
