A fresh wave of closures and restructurings is hitting America’s food and beverage sector, with more than 1,100 jobs eliminated across alcohol distribution, wine production and food manufacturing. From Colorado to California to Idaho, companies are citing acquisitions, weak demand and production realignment as reasons for the cuts.
Eagle Rock Distributing — 514 layoffs
One of the largest blows came in Colorado, where Eagle Rock Distributing (a major beer distributor) announced the shutdown of its Colorado operations, impacting 514 employees. The move follows the sale of its Colorado assets to Southern Glazer’s Wine & Spirits.
WARN filings said all Colorado workers would be permanently terminated as operations wind down in June, though a statement from Southern Glazer’s specified that the plan is to retain and retrain employees during the transition.
Gallo — 93 layoffs
California’s struggling wine industry was hit again after Gallo confirmed the closure of a Napa Valley production facility and additional staff reductions at multiple winery sites. In total, 93 jobs are being cut across locations in St. Helena and Healdsburg. The company said it is aligning operations with long-term market realities as wine demand softens.
Idahoan Foods — 61 layoffs
In Idaho, mashed potato maker Idahoan Foods is permanently closing its Rupert processing plant, resulting in 61 layoffs. Company notices said the shutdown is part of a broader production network optimization tied to long-term demand forecasts. Operations are expected to continue through late June before the cuts take effect.
Breakthru Beverage Group — 514 layoffs
Another major shakeup reportedly came from alcohol distributor Breakthru Beverage Group, where industry reports indicated roughly 514 positions were cut during a restructuring tied to slowing alcohol demand and margin pressure.
Industry under pressure
The combined losses underscore a growing trend: consolidation in alcohol distribution, declining wine consumption, and manufacturers trimming capacity as consumer habits shift in 2026. Meanwhile, other food manufacturers are consolidating operations nationwide, including big names like Campbell’s.
Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same
Leave a Comment