Katie Dowd
Four months after being acquired by wine giant Gallo, Sonoma County’s Clos du Bois has been hit by mass layoffs.
Nearly 40 employees — close to the entire staff — at Clos du Bois were laid off Thursday, the Press-Democrat first reported. An employee told the Press-Democrat that Clos du Bois sales “went from $4.5 million to $1.8 million,” a loss the employee attributed to their parent company Constellation’s disinterest in the brand after being bought by Gallo.
E. & J. Gallo purchased 30 low-cost wine labels from Constellation Brands in January for $810 million, one of the biggest wine acquisitions in history. Among them was Clos du Bois, a 40-year-old Sonoma County winery known for its inexpensive, generally under $10, wines. The winery maintained vineyards in Sonoma County and the Central Coast. It was purchased by Constellation in 2007.
Gallo confirmed the Clos du Bois layoffs, telling the Press-Democrat that employees will receive help finding potential employment in other parts of the company. “We are transitioning the bulk of our production from the Clos du Bois winery to our other wineries in Sonoma County,” a spokesperson said. “We will maintain some operations at Clos du Bois moving forward, but the current staffing levels are not needed for future production.”
As part of the restructuring, Clos du Bois’ Geyserville winemaking and wine-tasting facility will also be shut down.
