G3 Enterprises to cut 66 jobs at Modesto wine cap plant amid industry slump

G3 Enterprises, a Modesto-based packaging supplier, filed a Worker Adjustment and Retraining Notification indicating it will permanently eliminate 66 roles at its wine-closure plant, primarily in screw-cap production, from Oct. 6 through Dec. 31. The company said the move reflects broader market pressures, including reduced wine consumption, inflation and rising operating expenses. While the wine-cap line will be trimmed, the facility will keep producing other screw caps, capsules and Diam corks.

The decision mirrors a statewide shake-out as wineries grapple with excess grape inventories and shifting consumer preferences toward premium, lower-volume wines. Analysts note that aging baby-boomers and younger drinkers favoring spirits and craft beers are eroding mass-market wine sales, though they expect the sector to stabilize within two years. Similar layoffs have been announced by Gallo, Constellation Brands and Foley Family Wines & Spirits this year.