Modesto maker of wine caps, corks and more to lay off 66 in latest blow to industry

G-3 Enterprises will lay off 66 people at a Modesto plant that makes wine closures, an executive said Tuesday.

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The downturn in the wine industry forced the move at the Santa Rosa Avenue site, said an email from Laura Bream, vice president for human resources.

She did not say how many people will still work at all G-3 sites after the layoffs take effect Oct. 6. She did say it “will continue to be one of the region’s larger private employers.”

G-3 also does labels and bottling for beverage producers, along with warehousing and hauling across several industries. The closures include natural and synthetic corks, along with screw caps.

G-3 was founded by third-generation members of the Gallo family, which has its main winery near the beverage closure plant. Gallo continues to employ about 7,000 people in wine and spirits in California, South Carolina, and New York and Washington states.

The G-3 layoffs were in a notice required under state and federal law. Displaced people can get help toward new jobs at Stanislaus County Workforce Development.

The wine industry faces lagging demand, including from young adults who prefer other alcohol types, or none at all. The Wine Institute reported a total of 424,032 vineyard acres in California last year, vs. the 2013 peak of 469,790 acres.

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The biggest job hit was 227 of the 750 people at Bronco Wine Co. last year. It has a headquarters winery south of Ceres and other plants in San Joaquin, Madera and Napa counties.

Gallo in June cut 20 people from its Turner Road plant near Lodi. In February, the company laid off 93 at five sites in Napa and Sonoma counties. In July 2025, 47 lost their jobs with the closure of Courtside Cellars in San Luis Obispo County.

G-3 Enterprises is among many companies that have provided products and services to winemakers in good times and bad.

“The wine industry continues to experience significant headwinds,” Bream said in her email, “including declining consumer demand, inflationary cost pressures, rising production and operating expenses, and increased competitive dynamics across the supply chain. Like many companies in our industry, we have experienced changes in customer purchasing patterns and production volumes. While these changes have contributed to the need for restructuring, they reflect broader market dynamics affecting the entire wine sector.”

This story was originally published August 11, 2026 at 4:12 PM with the headline “Modesto maker of wine caps, corks and more to lay off 66 in latest blow to industry.”

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