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Gallo boosts Californian holding by acquiring Napa Valley vineyards

Published:  20 May, 2015

Gallo Wines is boosting its holding in Napa Valley after buying Cypress Ranch and part of the Palisades Vineyard for an undisclosed sum.

The acquisition - made an "an affiliate" of E&J Gallo Winery, comprises 642 acres, including 258 acres of vineyard that lies adjacent to its existing Sun Lake Vineyard. This will give it a combined planted acreage of 358 acres in the area, it said. 

In a statement, Roger Nabedian, senior vice president and general manager of Gallo's Premium Wine Division said: "The purchase of Cypress Ranch and Palisades Vineyard continues Gallo's commitment to having vineyards in the premier winegrowing appellations in California."

"These two vineyards are a great addition to our portfolio and are key to our growth of luxury wines."

The new vineyards are planted primarily with red grapes, including Cabernet Sauvignon, Merlot, Zinfandel and Malbec.

The move is the latest in a series of acquisition that has seen the company boost its holding in California. In March, it purchased J Vineyards and Winery in Sonoma County's Russian River Valley, which comprised nine vineyards amounting to 300 acres, as well as the winery, which produces upmarket sparkling Pinot Noir and Pinot Gris for the domestic market. In April 2014 it bought around 500 acres in Solona County on the North Coast with the acquisition of Ledgewood Creek winery and Vineyard.

The company said it had seen volume growth of 7% in its wine portfolio in the UK off-trade last year. This month it is launching new lighter 5.5% abv wines into the market, with Gallo Family Vineyard Spritz. Launching into Asda, it comes in two variants, a Pinot Grigio with passion fruit and pineapple and a Grenache rosé with raspberry and lime.