Wine company behind Trader Joe's ‘Two Buck Chuck' lays off dozens of workers amid ‘significant downturn'

Independent

13-02-2025

The California winemaker behind the famously affordable Charles Shaw wine — better known to some as the Trader Joe's staple "Two Buck Chuck" — announced last week that it plans to layoff 81 workers.
The affected employees at the Bronco Wine Company, which filed a WARN notice on February 7 announcing the layoffs, all work at the business' winery in Stanislaus County, according to SF Gate.
WARN notices are generally legally required to be filed with state governments prior to mass layoffs.
"Bronco Wine Co. today announced a reduction in force (RIF) impacting a number of positions across the organization, as part of a strategic restructuring plan to enhance operational efficiency and adapt to the challenging headwinds in the wine industry," the company said in a statement. "Bronco Wine Co. made this decision after careful consideration to streamline operations and position the company for long-term sustainability in the face of shifting population demographics, consumer trends and industry headwinds, and over supply of wine grapes in the marketplace."
The notice says that the layoffs were needed due to the current state of the economy and upcoming changes in the company's organization.
'This action is necessary due to a significant downturn in business revenues, necessitating a major reorganization in operations and workforce,' the notice says.
The layoffs are scheduled for April 8 and will eliminate a lift truck operator position, a security officer, an IT tech, a viticulturist and a cellar supervisor, according to the notice.
Once the layoffs are over, only 670 staff will be left working for the company in Stanislaus, Madera, Napa and San Joaquin counties.
Bronco Wine told SF Gate that shifting demographics and an oversupply of wine making grapes were among the reasons for the layoffs.
'This was a difficult decision, and we deeply value the contributions of all our employees,' Dominic Engels, the company's president and CEO, said in the statement. 'We are confident these strategic adjustments will enable Bronco Wine Co. to remain a leader in the wine industry and continue delivering high-value wines to our customers.'
Bronco Wine Company was started by Fred Franzia and his brother in 1973 after the family's original wine business, Franzia, was sold to Coca-Cola.
In 1995, the company acquired Charles F Shaw Winery after that company filed for bankruptcy. Under Franzia, the company began offering the now-beloved "Two Buck Chuck." The actual Chuck — Charles Shaw — never took a liking to the wine or his name being attached to it, calling it "embarrassing and demeaning." Prior to its acquisition by Franzia, Charles Shaw sold wines that cost as much as $50 per bottle.
Bronco isn't the only winery hurting right now. Wine consumption has been on the downturn, and wine makers across the world are feeling the effects. At least three wineries in California — Carlisle, Edmunds St John, and Vinca Minor — have all announced their closures.