Popular Trader Joe's wine brand has bad news, making harsh choice

Many businesses will tell you that nothing turned things around for them like covid did in the early 2020s. 

For some, the turmoil we all went through in 2020 was actually a good thing for business. 

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That tended to be the case for many health and wellness companies. 

Over the past few years, more people have gotten interested in taking charge of their own personal wellness. 

Perhaps that meant getting more active, so some companies that make personal gym equipment or workout accessories have been flying high. 

Consider brands like Hoka, which makes popular running sneakers, and Oura, which makes a wearable fitness ring. 

Some companies, however, saw covid turn things upside down for them. 

This included many brick and mortar businesses, which were flattened by a retreat in customers. Many mom and pop shops struggled to make it through months with little to no foot traffic. And many were gobbled up by larger corporate incumbents. 

Other businesses that struggled operated in the food and drink industry, particularly some in the alcohol business. 

The alcohol industry is fickle

At the beginning of covid, when there was little else to do, drinking rates went up around the U.S.

Many liquor stores either never closed or reopened quickly, identifying demand for booze from bored customers. 

More closings:

• Iconic ice cream chain unexpectedly closing locations
• Struggling auto parts chain closing down all stores but one
• Another discount retailer closing over 1,000 stores
• Iconic retail chain closing nearly 500 stores

And some restaurants quickly followed. Many began offering cocktails to go in portable pouches. Some breweries and vineyards followed suit, offering outdoor seating and limited capacities for people to drink in the great outdoors. 

But interest in drinking has steadily waned since the height of the pandemic. 

Many Americans are taking more of an interest in their health and cutting down on alcohol consumption. 

This is particularly true for younger generations; about 65% of Gen Z indicated they plan on drinking less, and drinking rates among young people is down by between 40-60% over the last 20 years. 

Popular cheap winemaker is struggling

And while there will probably always be a market for wine, particularly the expensive kind that you can impress your dinner guests with, other pockets of the industry are encountering trouble. 

Bronco Wine Co., the maker of the popular Trader Joe's Charles Shaw brand -- and better known as Two Buck Chuck -- is one such brand. 

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The California winery announced its second round of layoffs, indicating it plans to eliminate over 140 positions. 

The layoffs will be across several key areas, including: 

• 21 drivers
• 14 cellar operators
• 3 territory sales representatives

Many of the layoffs will take place in its Central Valley facility in Ceres, Calif. and are slotted to happen by June 16, 2025.

Earlier in 2025, it eliminated over 80 positions.

The company has cited operational issues and squeezed profits as a reason for the layoffs. 

“This decision was not made lightly … While these changes are difficult, they are also necessary. We stand at a critical juncture – not just responding to current challenges, but making bold moves to build a resilient, more focused organization for the future,” Bronco CEO Dom Engels said in a statement.

Earlier in 2025, the company said a “major reorganization in operations and workforce” was necessary to continue.