US wine producer Bronco Wine Co. has announced plans to cut jobs throughout the business.
In a statement, the Ceres, California-based group said the “reduction in force” would affect “a number of positions across the organisation”.
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Just Drinks asked the company to confirm how many employees would lose their jobs but Bronco Wine said it would not comment further at this time.
Local media, including CBS News, suggested 81 employees are at risk.
The move has been made as the group carries out “a strategic restructuring plan to enhance operational efficiency and adapt to the challenging headwinds in the wine industry”, according to the statement.
The group is seeking to “streamline operations” and ensure the business remains sustainable “long term”, as it witnesses a change in “population demographics, consumer trends and industry headwinds”, along with a general wine glut in the market, the company said.
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By GlobalDataBronco Wine did not confirm in what areas the jobs would be cut, but said “numerous departments” would be impacted.
It added that it was “committed to providing severance packages and transition support to affected employees”.
Dominic Engels, president and CEO, said: “This was a difficult decision, and we deeply value the contributions of all our employees. 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.”
Engels was picked to head up Bronco Wine in November, succeeding Daniel Leonard, who retired after a 38-year stint at the winemaker. Engels formerly held CEO positions at Revolution Foods and Stone Brewing.
Set up in 1973, family-owned Bronco Wine sells a range of brands, including domestic names Rosenblum Cellars and Cedar Brook, and imported brands Chateau de la Roche and Tierra Brisa.
According to its website, the group also manages an agricultural commodities business, supplying winemakers, called WC AG Services, a transport and logistics service called Bivio, as well as co-packing and import and export services.
It also has its own namesake sales and distribution division, working with on- and off-trade partners in 49 states, as well as a separate wines and spirits distribution service called Classic Wines of California.
The US wine industry is projected to have seen falling sales by value and volume in 2024 amid a “significant reset”, a report from Silicon Valley Bank said last month.
According to the research, the US wine market is anticipated to have seen volumes fall by 1-3% last year.
