Trader Joe's 'Two Buck Chuck' Winemaker Announces More Mass Layoffs

Newsweek

01-05-2025

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A California winery has revealed plans to eliminate nearly 150 positions, citing shifting industry trends and ongoing economic challenges as the driving factors.
The Bronco Wine Company, known for its Charles Shaw brand or "Two Buck Chuck," sold exclusively at Trader Joe's, said the move was necessary due to the "evolving dynamics of the wine industry and broader economic pressures."
When contacted by Newsweek, the Bronco Wine Company said it had no comment on the layoffs beyond its initial statement.
Why It Matters
The U.S. wine industry is facing a number of headwinds at present, including a decline in consumption, particularly among younger drinkers. Adding to this is the potential impact of the administration's trade policies, and the prospect of rising operational costs from tariffs leading to even narrower margins for American producers.
What To Know
The Ceres, California-based company was founded in 1973, and has since grown into one of the country's largest wine producers, according to VinePair. Bronco Wine Co. employed around 750 people in Ceres at the start of the year, CBS reported.
Earlier this month, the company submitted a Worker Adjustment and Retraining Notification (WARN) to the state of California, indicating plans to lay off 146 employees at its Bystrum Road facility in Ceres.
Stock image: A case with logo for Charles Shaw wine is pictured, Lafayette, California, December 8, 2021.
Stock image: A case with logo for Charles Shaw wine is pictured, Lafayette, California, December 8, 2021.
Gado/Getty Images
In a statement quoted by the Sacramento-based outlet KCRA 3, Bronco said that the decision was necessary "due to a significant downturn in business revenues, necessitating a major reorganization in operations and workforce."
This follows Bronco's February announcement that it would be laying off 81 people at its Stanislaus County winery, bringing the total workforce reduction in 2025 to nearly 230.
As quoted by CBS Sacramento at the time, the company attributed the layoffs to "challenging headwinds in the wine industry," including "shifting population demographics, consumer trends and industry headwinds, and over supply of wine grapes in the marketplace."
In addition to these longer-term difficulties, the U.S. wine industry is currently grappling with the impacts of the President Donald Trump administration's trade policies, including the global, 10 percent tariff announced on April 2, as well as the higher rates on certain import partners. In March, Trump threatened to impose a 200 percent tariff on wine and champagne from the European Union, though this has not come into effect.
Stock image: Rolling hills with grape vines are seen in a vineyard, Camino, California, September 14, 2024.
Stock image: Rolling hills with grape vines are seen in a vineyard, Camino, California, September 14, 2024.
Smith Collection/Gado/Getty Images
U.S. winemakers, who spoke to NPR earlier in April, said that tariffs on imported items such as barrels, corks and bottles could raise their operational costs substantially, which they would be forced to pass on to customers.
In addition, the ongoing "buy Canadian" boycott, adopted in response to Trump's tariffs and calls to turn Canada into a 51st state, has taken aim at American-made wines and resulted in further headwinds for domestic producers. According to the Wine Institute, a California-based advocacy organization, Canada had previously accounted for 35 percent of all U.S. wine exports before this protest.
What People Are Saying
Dom Engels, Bronco Wine Co. president and CEO, said: "This decision was not made lightly. We deeply appreciate the valuable contributions of every employee affected, and we are committed to providing support and resources to help ease the transition. While these changes are difficult, they are also necessary. We stand at a critical juncture—not just responding to current challenges, but making bold moves to build a resilient, more focused organization for the future."
Bronco Wine Co., in a statement shared with Newsweek, said: "In recent months, Bronco Wine Co. has taken a series of intentional steps to redefine the company and strengthen its position in the U.S. wine industry. Today's announcement marks a pivotal moment for Bronco Wine Co., as it now directs its attention toward growth and long-term stability."
The Wine Institute, in response to Trump's April 2 tariff announcements, said: "Today's announcement of new tariffs will only make it harder for American wineries to regain access to Canada, by far our most important export market. In early March, Canada cleared its shelves of all U.S. wine and continues to block its sale. As this dispute drags on, it is creating economic instability at a time when the industry is already under significant pressure."
What Happens Next
The layoffs are set to go into effect on June 16, KCRA reports.