Latest news with #BroncoWineCompany
Newsweek
01-05-2025
- Business
- Newsweek
Trader Joe's 'Two Buck Chuck' Winemaker Announces More Mass Layoffs
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. 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.
CBS News
26-04-2025
- Business
- CBS News
California winery that produces "Two Buck Chuck" to cut nearly 150 more jobs
CERES – For the second time this year, Bronco Wine Company, more known for its product Charles Shaw or "Two Buck Chuck," is cutting jobs. The wine company in Ceres says it has to cut 146 employees as it adjusts to what it calls "evolving industry dynamics," and it's not the first time. The company laid off more than 80 workers earlier this year. One of the Central Valley's biggest producers has laid off more than 220 workers since the start of the year. Their reason is consumer behavior and population shifts. Some students at Stanislaus State said wine just isn't on their radar. "I think Gen Z goes towards Hard Arizona, Twisted Teas, Iced Smirnof,f things like that," a student said. Grower Stuart Spencer agrees, saying the issue isn't how much Gen Z drinks, it's what they're drinking. Hard seltzers, cocktails in a can and cheaper grab-and-go options are dominating. "One of the rising categories are these ready-to-drink, RTD type products that are competing directly with wine," Spencer said. The changing taste buds are leaving a big mark on the industry. "There's a lot that's happening right now," Spencer said. "There's a lot growers are doing it, removing vineyards and reducing supply." In Stanislaus County, the total wine grape production value is on the decline, falling 21% from 2019 to 2023. "You know, the whole industry has been struggling the last couple years as we've seen decreased demand," Spencer said. Spencer said the economy plays a role in demand and young people. At the start of the year, Bronco Wine Company stated they had 750 employees here in Ceres. They've lost over 220 employees since.
The Independent
13-02-2025
- Business
- The Independent
Wine company behind Trader Joe's ‘Two Buck Chuck' lays off dozens of workers amid ‘significant downturn'
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.
