Gallo (winery)

Winery and distributor in California From Wikipedia, the free encyclopedia

GALLO (also stylized Gallo, previously E. & J. Gallo Winery) is an American wine producer and distributor, headquartered in Modesto, California. The company was founded in 1933 by Ernest Gallo and Julio Gallo of the Gallo family and primarily produces California wines. It reported an annual revenue of $5.3 billion.[1][2] It is the largest family-owned winery in the United States.[3]

LocationModesto, California, United States
Coordinates37.6335°N 120.9851°W / 37.6335; -120.9851
FormerlyE & J Gallo Winery
Other labels
Quick facts Location, Coordinates ...
Gallo
LocationModesto, California, United States
Coordinates37.6335°N 120.9851°W / 37.6335; -120.9851
FormerlyE & J Gallo Winery
Other labels
Founded1933; 93 years ago (1933)
Key people
VarietalsCabernet Sauvignon, Chardonnay, Merlot, Pinot noir, Sauvignon blanc, Syrah
DistributionInternational
Websitewww.gallo.com, gallofamily.co.uk
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History

During Prohibition in the United States, Ernest and Julio Gallo grew grapes and sold them to Eastern states where home winemaking was legal.[4]

Muskrat trappers in Delacroix, Louisiana, 1941, gathered around a large bottle of "Cream of California - California Claret", an early Gallo mass-produced wine

The winery was established in the fall of 1933,[5] following the repeal of Prohibition.[1] Their starting capital was less than $6,000 ($152,240 in 2026), with $5,000 of that borrowed by Ernest from his mother-in-law, Teresa Franzia.[6] The brothers studied commercial oenology by reading pre-Prohibition pamphlets published by the University of California, which they retrieved from the basement of the Modesto Public Library.[7] Julio focused on the production of wine, and Ernest on its sale.[8] Early operations were resource-intensive, utilizing a single tractor operated on consecutive 12-hour shifts. In the first year of activity, the brothers produced 177,000 gallons of wine.[4]

In 1957, E. & J. Gallo began to sell fortified white wine, Thunderbird. In 1962, E. & J. Gallo launched the one-gallon finger-ringed jug of wine, Red Mountain (later Carlo Rossi Red Mountain), named after a winery above Oakdale that closed during Prohibition.[9][10][11] Later, the US market began to move away from lower-cost wines.[4] Ernest and Julio introduced brand management practices to wine marketing and established long-term grower contracts for varietal grapes and grape research programs.[7] The company built a foreign sales and marketing operation to export California wines overseas.[1] The company's 1960s advertisements were made to associate their US-made wines with Europe's fine wine regions.[12]

During the 1980s and 1990s, E. & J. Gallo bought wine labels from Europe and Australia.[4] By 1993, E. & J. Gallo was the country's largest winery, with a 25% share of the American wine market.[5] Julio Gallo died in a car accident on 2 May 1993.[8] Ernest died in 2007, and his son Joe Gallo took over the company as CEO.[13]

In 2002, E. & J. Gallo purchased the Louis M. Martini Winery, giving the company its first Napa Valley location.[14] On September 14, 2007, Martha Stewart Living Omnimedia announced a partnership with E. & J. Gallo Winery to produce a brand of wine labeled "Martha Stewart Vintage".[15] In 2011, E. & J. Gallo sold Hornsby's hard cider to the C&C Group for an undisclosed amount [16] and partnered with Boisset Collection to purchase the Mondavi estate.[17] In 2017, E. & J. Gallo Winery bought the Napa Valley Stagecoach vineyard.[18]

In April 2019, Constellation Brands Inc. announced a deal to sell wine brands, including Clos du Bois and Mark West, to E. & J. Gallo Winery for $1.7 billion.[19][20] The deal was later amended, twice, to exclude sparkling wine brands Cook's California 'Champagne' and J. Roget American 'Champagne' (both retained by Constellation for four years post final agreement). Under the amended terms, Paul Masson Brandy was divested to Sazerac Company Inc., while Sheffield Cellars and Fairbanks were sold to Precept Brands LLC, and its High Color Concentrates division was divested to Vie-Del Company.[21] The deal, now with an adjusted price agreement of $1.1B, included a $250 million earnout if brand performance provisions were met over a two-year period after closing.[22][23] The agreement was finalized on January 6, 2021, for $810 million.[24]

In 2020, the University of California, Merced announced plans for the Ernest & Julio Gallo School of Management, the first new school established at the campus since its opening.[25]

In 2024, the company shortened its name to Gallo.[26]

Legacy

Ecological impact

In collaboration with the Wine Institute and the California Association of Winegrape Growers, Gallo helped develop and implement the Code of Sustainable Wine Growing Practices,[27] which addresses viticulture, grape growing, winemaking, and facility operations, with the overall goal of reducing the environmental impact of wine production.[28][29]

Gallo received ISO 14001 certification (a standard created to reduce environmental impact) from the International Organization for Standardization.[3]

In April 2009, the California State Water Resources Control Board served Gallo Glass Co. (a Gallo Winery subsidiary) with a cease and desist order and a $73,000 fine[30] for allegedly channeling water from the Russian River into an unlicensed reservoir[30] – there are provisions for licensing the reservoir under proper monitoring of flow and capacity.[31]

In March 2015, the California Department of Toxic Substances Control sued the E. & J. Gallo glass production plant in Modesto for improper storage and treatment of the glass bottles. E. & J. Gallo would use the dust collected by its air pollution control devices and introduce it into the components of their glass bottles during production. E. & J. Gallo argued that this process was standard in the wine industry.[32]

In February 2023, the Central Valley Regional Water Quality Control Board ordered E. & J. Gallo to pay $378,668 in fines for discharging irrigation and wastewater into the Merced River, which the board stated posed a threat to the health of fish and other aquatic life.[33]

Vineyard trials

Viticulturists at the company conduct trials on different grape varieties across various California climates and soil types to assess growth efficiency. One of the varieties that Gallo has been trialing in the San Joaquin Valley is the French wine grape Ederena.[34]

Awards

E. & J. Gallo Winery was named the "Bon Appétit Winery of the Year" in the 1996, 1998, and 2001 San Francisco International Wine Competitions.[35]

Intangible Business, a brand valuation firm,[36] rated Gallo as the world's "Most Powerful Wine Brand" in 2006,[37] 2007,[38] 2008,[39] and 2009.[40]

Controversies

In 1970, David Gallo considered suing country rock group Boone's Farm over the use of their name.[41]

In 1986, Ernest and Julio sued their younger brother, Joseph, for selling cheese that was branded with the Joseph Gallo Farms name. Joseph then counterclaimed, alleging that Ernest and Julio conspired to steal his share of the inheritance from their father. This claim included the winery, where the evidence submitted by Joseph's attorney suggested that it was actually started by their father. Joseph Gallo lost both suits and was forced to change the name of his business to Joseph Farms.[42]

In the 1990s, Gallo Winery made an agreement with Gallo Pasta (a Spanish company) that the latter would not sell its pasta in the United States.[43] Gallo filed a cease-and-desist order[44][45] in April 2009 against "The Spanish Table", a Seattle-based specialty food retailer, for carrying the pasta despite the previous agreement with the manufacturer.[43]

In February 2010, a French court convicted twelve winemakers and traders of fraud. They had mislabeled wine supplied to Gallo for its Red Bicyclette brand, falsely claiming that it was Pinot noir.[46]

In October 2019, a lawsuit was filed in the Eastern District of California claimed Gallo used patented technology without a license to develop their irrigation system.[47]

Labor relations

The United Farm Workers (UFW) began boycotting Gallo in the summer of 1973 after Gallo did not renew their contract and signed with the International Brotherhood of Teamsters (IBT).[48] The dispute occurred during a broader period of labor conflict in California agriculture in the early 1970s. Following the contract expiration, the UFW called a strike beginning June 27, 1973, and organized a nationwide consumer boycott of Gallo products.[49]

The conflict reflected broader tensions between the United Farm Workers and the Teamsters union, as growers across California signed agreements with different labor organizations during the period.[50]

Led by Cesar Chavez, the UFW alleged that Gallo had worked out a "sweetheart deal" with the IBT that offered fewer protections. The UFW also alleged that workers did not agree to Teamster representation. An estimated 10,000 workers and supporters of the UFW marched 100 miles over the course of a week to the Gallo winery in Modesto.[48] A significant portion of workers participated in the strike, with the boycott continuing for several years.[51]

Nationwide supporters of the boycott protested the buying and selling of Gallo wines, including student groups at Harvard University in Cambridge, MA, who demanded a boycott of Gallo by the university and picketed local stores.[52] In October 1974, approximately 70 demonstrators picketed a Harvard-area store urging customers to boycott Gallo wine during the dispute.[53] The boycott also coincided with broader legislative changes in California, including the 1975 California Agricultural Labor Relations Act, which established formal union election procedures for farmworkers.[54]

The boycott against Gallo was called off by the UFW in 1978, after the union felt it had improved workers' rights of representation in labor disputes.[52]

In October 2009, the California Agricultural Labor Relations Board (CALRB) revoked a 2007 election to eject the United Farm Workers from Gallo Winery,[55] citing interference from Gallo. This was the second time in a decade a vote to remove the union was overturned due to allegations of Gallo illegally trying to influence proceedings; the other was a 2003 ruling in which the CALRB threw out an election, citing a foreman who improperly requested signatures for the petition for the vote.[56] Gallo appealed the 2003 decision.

In 2023, Gallo laid off 355 of its California workers after a Texas company, Republic National Distributing Co. (RNDC), took control of handling partnerships with chain retailers in California.[57]

Wine brands

A bottle of André.
A bottle of Barefoot White Zinfandel.
An open bottle of Carlo Rossi jug wine with a drinking straw.
A bottle of Gallo Family Ruby Cabernet.

In addition to the Gallo Family Vineyards brand, the company makes, markets, and distributes wine under more than 100 other labels.[58][59][60]

The company also makes the low-end fortified wines Thunderbird and Night Train Express.

  • André was one of the best-selling brands of sparkling wine in the United States in 2018.[61] It is available in varietals including Brut, Extra Dry, Cold Duck, Blush, Spumante, Strawberry, and peach-flavored California Champagne, among others. André's California Champagne is bulk-fermented.[62] Under a 2006 agreement between the United States and the European Union regarding wine labeling, André is permitted to continue using the term "Champagne" on its labels under a grandfather clause. One champagne expert said the wine is "like ginger ale – pale yellow in color, lemony and on the sweet side, with maybe an apple flavor as well and low bubbles".[63]
  • Carlo Rossi is a brand of wine produced by the E. & J. Gallo Winery. The brand was named after Charles Rossi, who starred in TV ads for the brand in the 70s and was a relation of the Gallo family by marriage. Carlo Rossi is referenced in popular culture in E-40's single, "Carlos Rossi,"[64] and also in Lil B's song, "Swag Like Ohio"[65].
  • Boone's Farm was formerly a brand of apple wine[9] produced by the E. & J. Gallo Winery. Now, flavors are malt-based instead of wine-based due to changes in tax laws. The brand saw success within college campuses due to its low price.[66] In some U.S. states, such as Utah, some Boone's Farm products are labeled as malt beverages and not as flavored apple/citrus wine products, as some state liquor laws prohibit the sale of wine in grocery and convenience stores.[66]
  • Barefoot Wine, produced by Modesto-based Barefoot Cellars, was purchased by E. & J. Gallo Winery in 2005.[67] The line offers 17 varietals and blends: Zinfandel, Shiraz, Merlot, Pinot noir, Cabernet Sauvignon, White Zinfandel, Moscato, Pinot grigio, Sauvignon blanc, Chardonnay, Riesling, Sweet Red, Brut Cuvee Chardonnay sparkling wine, Extra Dry sparkling wine, Pinot Grigio sparkling wine, Moscato Spumante, and Pink Cuvee sparkling wine. In January 2020, Barefoot Wine announced the launch of a line of wine-infused hard seltzer.[68]

Additional brands

A–B

C–E

F–I

J–L

M

N–R

S–T

  • Saint Clair Family Estate – Exclusive import rights to the US[58]
  • Sebeka
  • Shackleton Scotch
  • Simply Naked[71]
  • Sleepy Hollow Vineyard – Vineyard[107]
  • Snows Lake Vineyard – Vineyard[108]
  • Souverain[109]
  • Stagecoach Vineyard – Vineyard only[110]
  • Starborough[58]
  • Storypoint[58]
  • Sun Lake Vineyard – Vineyard only
  • Sunseeker[58]
  • Talbott[58]
  • Taylor Country Cellars[71]
  • Taylor Dessert[71]
  • Taylor NY Table[71]
  • Tequila Komos[111]
  • The Dalmore Scotch[94] Exclusive importer rights in the US.
  • The Naked Grape[58]
  • The Ranch Winery[112]
  • The Tippy Cow[69]
  • Thrive[58]
  • Thunderbird
  • Tisdale Vineyards[58]
  • Toasted Head[71]
  • Tornatore[58]
  • Tott's[58]
  • Turner Road Vintners[58]
  • Turning Leaf[59]
  • Twin Valley

U–Z

See also

References

Further reading

External links

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