Constellation Brands will close its Mission Bell winery in Madera County, California. The closure results in the loss of approximately 200 jobs.
E. & J. Gallo triggered the shutdown by not renewing a five-year production contract. This contract was established in 2020 as part of an $810 million brand sale agreement.
The shutdown highlights broader difficulties facing the U.S. wine industry. The sector currently grapples with declining consumer demand, oversupply, and a general sales slump. Constellation implements this operational adjustment to optimize production based on its portfolio and market conditions.