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G-3 Enterprises, a manufacturer of wine closures in Modesto, is set to lay off 66 employees due to a downturn in the wine industry. The layoffs, which take effect on October 6, were confirmed by Laura Bream, the company’s Vice President for Human Resources. While she did not disclose the exact number of remaining employees at G-3 facilities, she emphasized that it would still be one of the area’s larger private employers.

The company’s operations include producing natural and synthetic corks, screw caps, as well as labels and bottling for various beverage producers. Founded by members of the Gallo family, G-3 maintains a close relationship with the Gallo Winery, which currently employs around 7,000 people across four states.

This announcement follows broader challenges in the wine industry, including a decline in demand particularly among younger consumers who are gravitating toward alternatives or abstaining altogether. The Wine Institute reported a decline in vineyard acreage in California, falling from a peak of 469,790 acres in 2013 to 424,032 acres last year.

This is not an isolated event, as the wine industry continues to face considerable obstacles. Notably, Bronco Wine Co., based near Ceres, laid off 227 of its 750 employees last year. Gallo also made cuts, laying off 20 workers in June from its Turner Road plant and 93 from various locations in Napa and Sonoma counties earlier this year.

Bream highlighted that the restructuring at G-3 is reflective of larger market trends impacting the wine sector, citing decreased consumer demand, inflationary pressures, and heightened competition. As a response to the layoffs, affected workers can seek support for new job placements through Stanislaus County Workforce Development.