Trader Joe’s ‘Two Buck Chuck’ Maker Announces Mass Layoffs
Headlines
- Bronco Wine Co., maker of Trader Joe’s popular Two Buck Chuck wine, has announced more than 80 permanent layoffs at its Stanislaus County headquarters.
- The layoffs are scheduled for April 8th and will impact a variety of positions, including drivers, lift truck operators, mechanics, security officers, cellar supervisors, viticulturists, and microbiology technicians.
- The company cited a significant downturn in business revenues as the reason for the layoffs, necessitating a major reorganization in operations and workforce.
Background
Bronco Wine Co. is a family-owned winery based in Ceres, California. The company was founded in 1973 and includes multiple brands, including Charles Shaw (Two Buck Chuck), Rosenblum Cellars, Carmenet, Picket Fence, Crane Lake Cellars, and Longevity Wines.
Two Buck Chuck, introduced in 2002, has been a huge success for Bronco Wine Co. and Trader Joe’s. The wine is known for its affordability and availability, and has helped introduce many consumers to California wines.
Industry Context
The announcement of layoffs at Bronco Wine Co. comes at a time of uncertainty in the wine industry. Several small wineries have recently shut down, and large-scale companies like Southern Glazer have reportedly laid off hundreds of employees.
The industry is facing challenges such as rising production costs, changing consumer preferences, and increased competition from imported wines.
Impact on Local Economy
The layoffs at Bronco Wine Co. will have a significant impact on the local economy in Stanislaus County. The company’s headquarters is a major employer in the area, and the layoffs will likely lead to a reduction in local spending and economic activity.
Historical Context
The founder of Bronco Wine Co., Fred Franzia, was a controversial figure in the wine industry. Known as the "Bad Boy of California Wine," Franzia was critical of high-end wines and focused on producing affordable, everyday wines.
He died in September 2022 at the age of 79.
Additional Facts
- The layoffs were listed as part of the Worker Adjustment and Retraining Notification (WARN) Act, which requires employers with 100 or more employees to provide 60 calendar days advance notification of planned closings and mass employee layoffs.
- Bronco Wine Co. and its affiliated entities, Bivio Transport and Logistics Co., LLC and WC Ag, are listed on the WARN notice.
- The notice for 81 permanent layoffs was filed and processed on February 6th.
- Besides Charles Shaw, the Bronco Wine Co. portfolio includes Rosenblum Cellars, Carmenet, Picket Fence, Crane Lake Cellars, and Longevity Wines.
- The company cited a significant downturn in business revenues as the reason for the layoffs, necessitating a major reorganization in operations and workforce.
- Eliminated positions include drivers, lift truck operators, mechanics, security officers, cellar supervisors, viticulturists, and microbiology technicians.
- The layoffs come after a handful of small wineries, including Carlisle, Tarpon, and Vinca Minor, have shut down, according to the Chronicle, and large-scale companies like Southern Glazer reportedly laid off hundreds of employees last fall.
