Gallo finalizes acquisition of wine brands

Wineries includes Wild Horse on Central Coast

-January 11,2021-

E & J. Gallo Winery announced in January that it has completed the acquisition of more than 30 wine brands from Constellation Brands, Inc.  The closing of the agreement between Gallo and Constellation was approved by the Federal Trade Commission on December 23, 2020.

The acquisition includes well known wine brands such as Arbor Mist, Black Box, Clos du Bois, Estancia, Franciscan, Hogue, Manischewitz, Mark West, Ravenswood, Taylor, Vendange, and Wild Horse that will join the Gallo portfolio. With this acquisition, Gallo will expand its operational footprint with the addition of five wineries located in California, Washington, and New York, along with Constellation’s Polyphenolics business. Gallo will also acquire the Nobilo New Zealand Sauvignon Blanc brand in a separate transaction with Constellation.

“The closing of this transaction represents our company’s long-term commitment to the wine industry,” said Chief Executive Officer, Ernest J. Gallo. He added, “We are pleased to welcome the new employees joining the Gallo family.”

First announced by Gallo and Constellation in April  2019 the completed deal was smaller than originally announced. Screen Shot 2021-01-11 at 6.25.31 AM

The included wineries are Mission Bell (Madera), Turner Road Vintners (Lodi), Clos du Bois(Geyserville) and Wild Horse (Templeton) in California, Hogue Cellars in Washington, and Canandaigua in New York.

Brands are typically lower cost labels-under $11 a bottle.

News reports say “According to research by wine sector consultant Jon Moramarco, Gallo brands now represent almost 30% of all bottles of wine produced in California, by far the country’s largest producer. Last year, Gallo’s share was at 24.4%. Meanwhile, Constellation drops from 12% to 6.5% of the state’s wine wine production.”

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