Gallo triples production capacity in Napa

Gallo has tripled its production in Napa Valley with the purchase of The Ranch Winery, a custom grape-crush facility with a capacity of 30,000 tons.

Gallo’s purchase of the Rancho Winery will triple its production capacity

Located between Highway 29 and the Silverado Trail, the Ranch Winery spans more than 70 acres and has a 4.6 million cases bottling capacity and approximately 8 million gallons of storage.

The Ranch Winery, one of the biggest facilities of its kind in the region, was originally a Trinchero winery used for the production of white Zinfandel during the 1980s. The facility was acquired by an investor group led by Napa winemaker Joel Gott in 2007, and has since been used as a custom-crush facility for boutique winemakers.

Currently, Gallo owns fourteen wineries throughout Napa and Washington. Its existing Napa Valley wineries – Louis M. Martini and William Hill – represent a total grape crush capacity of 15,000 tons. This acquisition will take that figure to 45,000 tons, tripling its production capacity in the region.

In a statement released this morning, Gallo said the purchase was made to support the growth of its premium and luxury wine ranges in Napa Valley.

“We are excited to have this highly capable winery in close proximity to our other Napa wineries”, said Roger Nabedian, senior vice president and general manager of Gallo’s premium wine division.

“This purchase supports the company’s continued growth in the super premium and luxury wine segment.” He added, “We look forward to integrating The Ranch Winery into our premium wine strategy and working with the existing customers.”

It is the latest move by Gallo to up its premium offering, and follows recent rash of vineyard acquisitions in top Californian wine regions. Earlier this year the US producer bought Talbott Vineyards in California’s Santa Lucia Highlands, to build on its premium portfolio. In March it snapped up sparkling wine specialist J Vineyards & Winery in a deal that included the Healdsburg winery and 121 hectares of vineyards in Sonoma and the Russian River Valley. Two months later it bought two vineyard sites in the Napa Valley – Cypress Ranch and part of the Palisades Vineyard near Calistoga – further strengthening its premium portfolio. Earlier this year the producer launched its premium brand Canyon Road onto the UK on-trade, following success in the US.

With this deal, Gallo will own 15 wineries throughout California and Washington. Financial terms of the sale, which is expected to be completed on 31 December, were not disclosed. As part of the agreement, Gallo will honor all contracts with existing Ranch Winery customers.

Founded by brothers Ernest and Julio Gallo in 1933 in Modesto, California, Gallo’s portfolio includes more than 80 unique brands including Barefoot Cellars, Dark Horse, and Gallo Family Vineyards, as well as premium box wines The Naked Grape and Vin Vault. Its premium range includes Columbia Winery, Ecco Domani, Edna Valley Vineyard and J Vineyards & Winery.

The Ranch Winery Facility in St Helena, Napa