E & J Gallo, the largest US wine maker, would lay off hundreds of workers in March

According to documents filed with California’s Employment Development Department, EJ & Gallo intends to lay off more than 300 employees on March 12.

The paperwork were submitted on January 10th, after the winery’s agreement with Republic National Distribution Co. to oversee Gallo’s retail distribution, which had previously been handled in-house.

The beverages industry revealed earlier this month that Republic National Distribution Co. is being sued by Sazerac for failing to pay millions of dollars in bills.

Republic National, which has been at odds with Sazerac for almost a year, will take over Gallo’s independent market distribution in 2021.

The San Francisco Business Times says that Gallo plans to sell off its own distribution facilities, including its 68,000-square-foot warehouse, in March. Layoffs will affect employees at seven different locations around the state.

Employees will be able to interview for similar positions with RDNC or apply for new roles at Gallo, according to the business.

Many people have been left stunned by the revelation, especially given EJ & Gallo’s recent accomplishments.

In January 2021, EJ & Gallo executed one of the largest purchases in US wine history, paying $810 million acquiring 30 low-cost brands from rival business Constellation Brands. According to sources at the time, the move meant that Gallo brands accounted for about 30% of all bottles of wine produced in California, making it the largest wine producer in the US by sales volume.

This year, Gallo signed a multi-year deal with the NFL to become the official wine sponsor of the football league. This will make sure that Gallo is well-known before, during, and after the game on Sunday, February 12.