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Let’s TalkE. & J. Gallo Winery Acquires Award-Winning Rombauer Vineyards
Wine Giant E. & J. Gallo Acquires Premium Wine Producer Rombauer Vineyards
E. & J. Gallo Winery, a global wines and spirits producer based in California, United States, acquired Rombauer Vineyards, a producer of wines in California, United States, on August 29, 2023. E. & J. Gallo acquired Rombauer to expand its portfolio of luxury wines. Rombauer’s wines have consistently won accolades for their exceptional quality and taste.
Transaction Summary
Our Take on the Acquisition
E. & J. Gallo Winery (acquirer) acquired Rombauer Vineyards (target) for its portfolio of award-winning wines and will position the new brand in its Luxury Wine Group. In addition to its portfolio of wines, E. & J. Gallo will acquire 670 acres of vineyards in California, which it will utilize to make the Rombauer brand wine. E. & J. Gallo already owns and operates 23,000 acres of vineyards in California, so it will be able to seamlessly integrate the new location.
The Facts of the Acquisition
- Target: Rombauer Vineyards is a family-owned winery based in California. It has 670 acres of vineyards in California that the company utilizes to make 340,000 cases, at 12 bottles per case, a year.
- Acquirer: E. & J. Gallo Winery has been expanding its portfolio by distributing for smaller companies, acquiring vineyards through acquisition, and securing the supply of grapes from growers. Its estimated sales in the United States are almost 100 million cases annually.
The Transaction
| Date: | August 29, 2023 |
| Price: | Undisclosed |
| Purpose: | To expand Gallo’s wine portfolio in the luxury or premium wine category |
| Acquirer’s Statement: | Joseph C. Gallo, Vice President and General Manager of Gallo’s Luxury Wine Group – “The Rombauer brand and family have built a reputation around quality and integrity. It’s an iconic brand rooted in distinctive and respected wines. We are excited to work on this next chapter alongside the very talented Rombauer leadership and winemaking team. Their values, along with their long-term focus, align seamlessly with our culture. Our shared goal is to honor and build on this legacy.” |
Target/Seller: Rombauer Vineyards
Company Information
| Target: | Rombauer Vineyards |
| Website: | rombauer.com |
| Founded: | 1980 |
| Industry: | Alcoholic Beverages, Winery, Farmland |
| Type: | Private, Family-Owned |
| Employees: | 81 (Self-published on LinkedIn) |
| Locations: | Head Office and Winery: 3522 Silverado Trail North, Saint Helena, California, United States Tasting Room: 12225 Steiner Road, Plymouth, California, United States |
Product Information
| Products: | Barbera – Dry, medium-bodied, red wine Cabernet Sauvignon – Dry, full-bodied wine from red-skinned grapes Chardonnay – White wine from green-skinned grapes Merlot – Dry, medium-bodied wine from red-skinned grapes Sauvignon Blanc – Popular white wine with flavors of lime, apple, passion fruit, and white peach Zinfandel – Sweet, full-bodied red wine |
| Market Reach: | United States |
Financial Information
| Revenue: | USD $49 million (Unconfirmed source: ZoomInfo) |
| Revenue per Employee: | USD $604,938 (i.e., USD $49 million / 81 employees = USD $604,938 – estimated based on the self-published number of employees and revenue from ZoomInfo) |
Did You Know?
As of 2023, there are 11,700 wineries in the United States, employing about 48,700 workers and generating sales of approximately $24 billion. The four largest U.S. wineries include E. & J. Gallo, The Wine Group, and Constellation Wines, which generate about 41% of the total industry revenue. America’s wine export sales exceed $1.6 billion annually to 156 different countries.
Target/Seller Overview: Rombauer Vineyards
Koerner and Joan Rombauer founded Rombauer Vineyards in 1980. It is a Napa Valley-based, family-owned winery spanning 670 acres of vineyards in Carneros, Atlas Park, Stags Leap, St. Helena, Calistoga, and the Sierra Foothills in California, United States. Today, three generations of the Rombauer family work in different roles within the company. The company sells 340,000 cases of wine a year. The Rombauer Vineyards’ portfolio is world-renowned for its quality and distinctive fruit-driven style. Rombauer wines are consistently awarded top accolades and featured numerous times on Wine Spectator’s Top 100 list.
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Explore Your Options NowBuyer/Acquirer: E. & J. Gallo Winery
Company Information
| Buyer: | E. & J. Gallo Winery |
| Website: | gallo.com |
| Founded: | 1933 |
| Industry: | Alcoholic Beverages, Winery, Farmland |
| Type: | Private, Family-Owned |
| Employees: | 7,000 (Self-published on company website) |
| Locations: | Head Office: 600 Yosemite Blvd, Modesto, California, United States |
Product Information
| Products: | The portfolio includes more than 100 products. Wine – Alcoholic drink made from fermented grapes Spritzer – White wine mixed with carbonated or sparkling water Sangria – Red wine mixed with fruits or spirits Tequila – A distilled beverage made from the blue agave plant Whisky – Liquor made from fermented grain mash Brandy – Liquor produced by distilling wine Vodka – Clear, distilled spirit made from fermented cereal grains and potatoes Margarita – Cocktail consisting of tequila, triple sec, and lime juice RumChata – A cream liqueur made from rum, dairy cream, cinnamon, vanilla, sugar, and other |
Financial Information
| Revenue: | USD $5.3 Billion (2022) (Source: Forbes) |
| Revenue per Employee: | USD $757,142 (i.e., USD $5.3 billion / 7,000 employees = USD $757,142 – estimated based on the self-published number of employees and revenue from Forbes) |
Buyer/Acquirer Overview: E. & J. Gallo Winery
E. & J. Gallo Winery is a family-owned winery with 15 family members actively working in the business. Established in 1933 and headquartered in Modesto, California, E. & J. Gallo Winery remains a privately held and ever-growing company that employs more than 7,000 people worldwide.
The company offers a vast array of products comprising more than 130 brands, including table, sparkling, and luxury wines, beverage products, dessert wines, and distilled spirits like vodka, tequila, and brandy. Gallo is an exporter of California wine, with its products available in more than 100 countries. Also, it imports wines from Argentina, Chile, France, Germany, Italy, New Zealand, South Africa, and Spain. Additionally, Gallo imports spirits from Australia, the Caribbean, Italy, Mexico, the United Kingdom, and Venezuela.
E. & J. Gallo owns more than 20 wineries strategically located in wine regions throughout California, Washington, and New York and owns over 23,000 acres of vineyards across California and Washington. In addition, the company contracts with growers who supply grapes yearly.
The company has led the way in developing new environmentally friendly practices such as limiting the use of synthetic chemicals, fertilizers, and pesticides, recycling and reusing processed water, creating new wetlands, and protecting existing riparian habitats.
Previous Acquisitions by E. & J. Gallo Winery (Partial List)
- Hahn Family Wines (2023) – A 1,100-acre vineyard and estate winery based in California, United States.
- The Alixir Company (2023) – A zero-sugar canned wine company selling under the brand name Bev, headquartered in California, United States.
- Denner Vineyards (2022) – A 130-acre vineyard and estate winery in California, United States.
- Agave Loco (2021) – Owner of RumChata, a leading cream liqueur brand established in 2009. The company is headquartered in Illinois, United States.
- Pahlmeyer Winery (2019) – A winery based in Napa Valley, California, United States.
- Orin Swift Cellars (2016) – A California winery established in 1998.
Sources
- Company Profile
- Other Sources
- Unconfirmed Sources
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