Barrels sit in a cool windowless building at Spottswoode Winery, where bottles of Cabernet Sauvignon range from $90 to $225. The wine making process is a nuanced and delicate scientific process that requires wine makers to work with Mother Nature through the year-long production process. Recently, spikes in temperatures in Napa Valley and across the globe have made it increasingly difficult for wineries to work their magic. Barrels
Ceres, California – Bronco Wine Company, the California-based producer of the popular Charles Shaw wine—better known as “Two Buck Chuck,” has announced plans to lay off 146 employees at its Ceres facility. This is the latest blow in a year of sweeping cuts across the wine industry.
The layoffs, disclosed in a Worker Adjustment and Retraining Notification (WARN) submitted to the state earlier this month, are expected to take effect on June 16. They are the second major workforce reduction the company has undertaken in 2025, following the termination of 81 positions earlier this year at a Stanislaus County winery. Combined, Bronco has laid off more than 220 workers since January, cutting nearly one-third of its local workforce.
Bronco, one of the nation’s largest wine producers, cited “evolving industry dynamics” and “ongoing economic challenges” as key reasons for the cuts. In a statement, the company said the move was necessary to realign operations with declining revenues and shifting consumer preferences.
“We deeply appreciate the valuable contributions of every employee affected,” said Bronco CEO Dom Engels. “This decision was not made lightly, but it is essential to our long-term survival in an increasingly competitive and disrupted market.”
The U.S. wine industry is experiencing a turbulent period marked by a steep decline in wine consumption — particularly among younger drinkers. Experts point to the rise of ready-to-drink (RTD) beverages such as hard seltzers, canned cocktails, and flavored malt drinks as eroding wine’s once-solid market share.
“Young consumers aren’t necessarily drinking less — they’re just not drinking wine,” said Stuart Spencer, a grower and industry analyst. “Products like Twisted Tea, Hard Arizona, and canned mixed drinks are the new go-to choices.”
In Stanislaus County, where Bronco is headquartered, wine grape production has also suffered. According to local agricultural reports, the total value of wine grape production dropped by 21% from 2019 to 2023.
To compound matters, broader economic pressures are squeezing producers. Tariffs on imported wine materials, recently reimposed under President Donald Trump’s trade policies, have pushed up the cost of essentials like barrels, bottles, and corks. Meanwhile, a Canadian boycott of U.S. wines — in response to the tariffs and controversial political rhetoric — has effectively eliminated what was once a significant export market for California producers.
The Wine Institute, an advocacy group for California winemakers, said Canada previously accounted for 35% of U.S. wine exports. “This dispute is creating instability at the worst possible time,” the group said in response to April’s tariff announcements.
Despite the setbacks, Bronco says it’s not giving up. The company emphasized that the layoffs are part of a broader restructuring strategy aimed at long-term stability. “We’re taking intentional steps to redefine the company and strengthen our position,” a spokesperson said.
For now, however, the job cuts are being felt acutely in Ceres, where Bronco had about 750 employees at the start of the year. The future of “Two Buck Chuck” may depend on whether the company — and the industry — can adapt to a changing marketplace.
