US-based Delicato Family Wines has stopped production at a satellite site used for its Francis Ford Coppola wines in Geyserville, California.
The company told Just Drinks it had stopped crushing at the facility, while bottling and canning activities continue.
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Ceasing winemaking at the facility, known as Virginia Dare Winery/Geyser Peak, has resulted in the layoff of 15 employees.
Delicato’s move is part of a “long-planned” integration of the Francis Ford Coppola wine business, acquired by Delicato in 2021, into its “broader production network”, it said.
Over the past three years, Delicato has gradually been relocating winemaking operations from satellite site to the main Francis Ford Coppola Winery, located nearby in Geyserville, and other Delicato locations.
The satellite facility which has been “underutilised” for wine production, is being “right-sized” as part of a broader strategy to “optimise resources” across Delicato’s portfolio, the group added.
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By GlobalDataThe California-based group’s portfolio includes brands such as Coppola Diamond, Bota Box and Gnarly Head. Transcendent Wines, its fine wines portfolio features the brands Black Stallion, Diora and Torbreck, among others.
The development comes amid a difficult operating climate for US wine producers.
Jackson Family Wines pointed to a “challenging business environment” after announcing employee layoffs this April.
At the time, the company told Just Drinks it had “made some recent adjustments as part of broader efforts to navigate the challenging business environment facing many in and beyond our industry and to protect the long-term health of our business”.
Delicato, however, emphasised that its decision to shut the Francis Ford Coppola facility was “not tied to sales performance or industry trends – on the contrary, the Francis Coppola Diamond Collection has grown 6% since we acquired the brand in 2021”.
Earlier this month, The Duckhorn Portfolio announced plans to concentrate its investment on a select group of wineries and close several tasting rooms as part of efforts to “profitably scale.”
