E. & J. Gallo Winery brings merlot to the masses. The
company is the world's largest family-owned winemaker, thanks
in part to value-jug and -box labels Carlo Rossi and Peter Vella.
The vintner owns nine wineries and some 16,000 acres of California
vineyards; it also contracts with other growers statewide to
meet its supply needs. It is the leading US exporter of California
wine, selling some 60 brands, including table and sparkling wines,
and imports 14 of its name brands from countries dotting the globe.
Gallo Family Vineyards Sonoma Reserve and the Italian wine Ecco
Domani are among its premium wines and imports. E. & J. Gallo
Winery was established in 1933 and is still owned and run by the
For a stiffer drink, Gallo offers several distilled
spirits, including gin and tequila. The two brands of
distilled spirits include New Amsterdam Gin and Familia Camarena
Tequila. The vintner also imports and sells wine from Argentina,
Australia, France, Germany, Italy, Spain, South Africa, and New
In addition, the vintner makes its own labels and
bottles through subsidiary Gallo Glass Company.
Headquartered in Modesto, California, Gallo Winery owns nine
wineries in California and Washington and more than 16,000 acres of
vineyards across the Golden State. Gallo products are sold in more
than 90 countries.
Sales and Marketing
Gallo's supplier development team works with 3,000-plus
suppliers to support and grow its business.
While privately-owned E. & J. Gallo Winery doesn't report
its financial results, the vintner rings up an estimated $3.6
billion in sales.
The company aims to fuel growth through an expansion of its
international presence. In 2014 the company earned the exclusive
rights to distribute Italy's Allegrini wines in the US. Nestled in
the Valpolicella region, Allegrini Estates produces several
noteworthy wines. In 2012 it inked a distribution deal to
distribute Italy's Brancaia wines in the US. As part of the
distribution deal, E. & J. Gallo sells Brancaia's portfolio of
wines, which include Brancaia Chianti Classico, Brancaia Tre
(Sangiovese, Merlot, and Cabernet Sauvignon), Brancaia Ilatraia
(Cabernet Sauvignon, Sangiovese and Petite Verdot), Brancaia Il Blu
(Sangiovese, Merlot, and Cabernet Sauvignon).
Gallo's dominance in the US market has grown from a focus
on popularly priced wines. Pursuing a broader domestic
base, it has extended its range of prices and products, from
alcohol-added wines and wine coolers to mid-priced and
imported varietals that fetch more than $50 a bottle. A number of
premium wines, including Whitehaven and Frei Brothers, debuted with
the Gallo name omitted to keep the company's reputation for
ubiquity from tarnishing the tony brands.
Amid a competitive lower-end market, the
company is targeting consumer niches through
sponsoring pro volleyball tournaments and other events.
Concurrently, it has buffed the image of certain
California wines with genteel names (Gallo Family Vineyards)
and removed the Ernest & Julio tag from packaging and
advertising for those labels. The changes reflect Gallo's strong
research and development capacity both in wine processing and
positioning. A Research Winery facility produces between 400- to
700-pilot wines a year based on reams of data gathered at wine
tastings as well as from retailers, distributors, and social media
Mergers and Acquisitions
Adding to its acreage in east of Napa Valley, Gallo acquired
Ledgewood Creek Winery and Vineyard in Solano County is April 2014.
The 400-acre ranch consists of about 230 acres of vineyard, which
produces a variety of wine grapes.