E&J Gallo has acquired Napa Valley winery Pahlmeyer as part of its ‘super premium’ strategy.
The deal, of which terms were undisclosed, includes both the Pahlmeyer and Jayson by Pahlmeyer wine brands, which range in price from $30 to $350 and are known for producing iconic Bordeaux-style wines.
As part of the agreement, Gallo will lease Waters Ranch - a vineyard in Atlas Peak - and will continue to operate the Jayson tasting room that opened in The Village at Vista Collina Resort in August of 2018.
The Wayfarer brand and Wayfarer Vineyard are not part of the sale and will continue to be run by Cleo Pahlmeyer.
Pahlmeyer complimented E&J Gallo’s portfolio “nicely”, allowing Gallo to “continue competing in luxury wine and fuelling strategic growth for the company”, said Roger Nabedian, senior vice president and GM of Gallo's Premium Wine Division.
“Founder Jayson Pahlmeyer's passion for wine is evident in everything he's done. We are thrilled to continue working with both Jayson and his daughter Cleo as we incorporate the esteemed Pahlmeyer brands into our luxury portfolio,” he said.
Pahlmeyer said he was “thrilled” to transition ownership of Pahlmeyer Winery to the Gallo Family.
"The two companies share similar principles and, with Gallo's long-standing commitment to quality, I am confident they will take Pahlmeyer to even greater heights in the future."
Dreaming of creating a ‘California Mouton’, Pahlmeyer left behind his career in law and travelled to Northern California, his native soil, where he partnered with the owner of a 55-acre site in south-east Napa Valley to pursue his dream.
Together the duo took several trips to elite vineyards in France studying the finest red Bordeaux varieties and worked with the University of Bordeaux to evaluate soil samples from their land in California, and in 1981 planted several French cuttings in Napa.
In 1986, Pahlmeyer's Proprietary Red was born, a blend of Cabernet Sauvignon, Merlot, Cabernet Franc, Petit Verdot and Malbec, with the 30 vintage of this released earlier this year.