Booze is big business in California. Or… was.
In a move that’s rattled the entire alcohol supply chain, three major alcohol companies (including a wine giant and two massive distributors) are pulling out of California or cutting hundreds of jobs.
Over 2,000 layoffs have already been confirmed.
And it’s not just warehouse workers and drivers feeling the hit. Bartenders, restaurants, liquor stores (and anyone who enjoys a bottle of something strong) might be next in line to feel the ripple effects.
Here’s what’s going on:
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Republic National Distributing Company (RNDC) is one of the largest alcohol wholesalers in the U.S.
And in Q1 2025, it dropped a bombshell: Over 750 layoffs in California. Most of them in the Bay Area and SoCal.
The company is “consolidating operations,” which appears to be code for shutting down distribution centers.
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RNDC distributes HUGE names like Tito’s, Smirnoff, Crown Royal, and countless California wineries.
Its network stretched across the entire state, handling warehousing, logistics, sales, and delivery.
So when RNDC pulls back, the ripple effects hit hard.
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Yet another blow to California’s struggling wine industry: Gallo is closing its Courtside Winery facility in San Miguel, laying off all 47 employees.
According to state WARN filings, layoffs will occur in two phases – one in September and another in January – ahead of the facility’s full closure on December 1.
The 300,000-square-foot plant, located just north of Paso Robles, was originally purchased in 2012 during a period of Gallo expansion.
But now, operations are ceasing entirely.
And it’s not just Gallo feeling the squeeze…
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The company has already sold off two other Central Coast facilities in the past year, including Edna Valley and the Wild Horse winery in Templeton.
They’re not alone.
In 2025, Republic National Distributing Co. exited California with 1,700 job cuts. Delicato shut down its Geyserville plant. Duckhorn closed tasting rooms. Jackson Family Wines made layoffs. Constellation Brands offloaded six wine labels. And Bronco Wine Co. cut dozens of Central Valley jobs.
That’s not a coincidence.
California’s wine market is oversupplied, labor costs are high, and demand for lower-priced bottles is shrinking.
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Based in Stockton, Stefanelli Distributing had been operating since the 1980s.
But in early 2025, it shut down completely, laying off all 280 employees.
The family-owned beer and spirits distributor blamed high costs and shrinking margins.
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Alcohol is still selling, but it’s not as profitable.
Here’s what’s squeezing alcohol distributors:
– Soaring fuel and freight costs
– Warehouse and labor shortages
– Retailers demanding bigger discounts
– Increased automation requiring fewer workers
It’s a perfect storm for cutbacks.
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California’s alcohol laws are notoriously complex – layered with local taxes, zoning rules, delivery restrictions, and licensing hurdles.
Add in rising wildfire risks and insurance nightmares, and it’s no wonder big distributors are ditching the state and shifting ops elsewhere.
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Combined, these three companies are eliminating more than 2,000 jobs.
That’s thousands of drivers, warehouse workers, logistics staff, and admin roles. Gone.
Many of those jobs paid well, especially with overtime and union benefits. They won’t be easy to replace.
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When supply chains break down, guess who gets hit next?
– Small bars may struggle to get specific products
– Restaurants could face delayed shipments
– Liquor stores may see fewer promotions and higher prices
Not ideal in an already competitive market.
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If your go-to bottle suddenly disappears from the shelf, this could be why.
Behind the scenes, your favorite bourbon or Prosecco may no longer be distributed through California, or the company handling it just scaled way back.
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There’s another major factor behind these alcohol industry layoffs: demand is shifting.
Millennials and Gen Z aren’t drinking like their parents did.
– A 2024 Gallup poll found that only 62% of adults under 35 say they drink alcohol, compared to 70%+ in older age groups.
– Gen Z is especially sober-curious: According to Berenberg Research, over 50% of Gen Z say they’re trying to drink less.
– Mocktails, THC beverages, and non-alcoholic spirits are booming in popularity.
If younger consumers are skipping the booze aisle, that’s bad news for wine, beer, and spirits companies, especially in high-cost states like California.
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These alcohol exits are part of a bigger wave of factory, warehouse, and logistics closures across California, especially in food and beverage.
We’ve seen:
– Meatpacking plants shut down
– Food factories relocate out of state
– Beverage bottlers outsource operations
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Texas, Nevada, and the Southeast are picking up the slack.
With cheaper land, lower taxes, and looser regulation, these states are the new home base for warehousing and distribution.
Even Gallo has been investing in facilities outside California.
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– 2,000+ jobs gone
– Wine and liquor supply chains disrupted
– Local businesses on edge
And the scariest part is that it might not stop here.
Big companies are quietly slipping out of California…
So now I’m turning it to you: What do YOU think?
Have you noticed any changes at your local liquor store?
Drop your thoughts in the comments!
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