E.&J. Gallo Winery recently announced that it had reached an agreement with Constellation Brands to acquire 34 wine and spirit brands for $1.7 billion. Some of the brands that Constellation will be selling include, Mark West, Ravenswood, Wild Horse and Black Box. As part of the agreement, Gallo will also be receiving six new winemaking facilities with four of them located in California in Madera, Lodi, Geyserville and Templeton.
Based in Modesto, Gallo has remained a family-owned company since it was established in 1933. “While we continue to invest in our premium and luxury businesses, we see a tremendous opportunity with this acquisition to bring new consumers into the wine category,” Chief Executive Officer for Gallo, Joseph E. Gallo said in a press release.
Constellation is said to be moving away from lower-prices wines, with the average price of the wines acquired by Gallo being around $11. Earlier in the year, Wine Business Monthly named Gallo as the largest U.S. winery by volume, with Constellation coming in third. The deal is expected to close later this year after the transaction receives regulatory approval.
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