The immediate impact is the loss of approximately 200 jobs. The decision comes after Gallo, which in 2020 purchased thirty brands from Constellation for €700 million with a five-year production contract, decided not to renew that agreement.
This is a phase that is part of Constellation's repositioning.
Last April, the group attempted to sell its entire wine division, but retained its premium brands.
The message is clear: in a shrinking market, commodity wine is no longer profitable for large corporations. For California, which in 2024 accounted for more than 80% of US wine production, this is a time of severe crisis.
