Exclusive: Gallo Acquires California Luxury Player Rombauer Vineyards

E.&J. Gallo has reached a deal to acquire California winery Rombauer Vineyards, known for luxury Chardonnay, for an undisclosed sum. The acquisition includes the Rombauer Vineyards brand, three winery and production facilities, two tasting rooms, and more than 700 acres of sustainably farmed vineyards in Carneros, Atlas Peak, St. Helena, Calistoga, Sonoma Valley, and the Sierra Foothills.

“The Rombauer brand and family have built a reputation around quality and integrity,” said Joseph C. Gallo, vice president and general manager of Gallo’s Luxury Wine Group. “It’s an iconic brand rooted in distinctive and respected wines.” He added, “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.”

The Rombauer portfolio includes its Proprietor Selections (retailing from $65-$175), single vineyard wines ($45-$140), and the core portfolio of globally distributed Classic wines ($28-$75). According to Impact Databank, U.S. depletions for the Rombauer Vineyards brand totaled approximately 220,000 9-liter cases last year, averaging $42 a bottle at retail. Total production is approximately 350,000 cases. Rombauer is known especially for Chardonnay, with its Carneros Chardonnay bottling being a repeat selection among Wine Spectator’s Top 100 Wines of the Year.

Gallo told SND it has no plans to change the Rombauer portfolio, which was attractive for its well-established reputation for fruit-driven wines and consistent critical acclaim. Rombauer’s leadership and winemaking teams—including president and CEO Bob Knebel; vice president of viticulture and winemaking Richie Allen; and winemaker Luke Clayton—will remain in place.

The winery was founded by military and commercial airline pilot Koerner Rombauer and his wife Joan in 1980. Rombauer quickly developed a following for its opulent style of Chardonnay, along with Zinfandel, Cabernet Sauvignon, and Sauvignon Blanc among other classic varietals. Most recently, the winery introduced a Santa Lucia Highlands Pinot Noir this spring.

“We are thrilled that we were able to find a dedicated, multi-generational family who share in our vision and passion of providing exceptional wines with a long-term focus on quality and reinforcing community. Gallo places great importance in stewardship of the land, the Rombauer brand, and their employees,” said owner K.R. Rombauer, son of Koerner and Joan Rombauer.

Rombauer joins a Gallo premium domestic portfolio that also includes Pahlmeyer, Orin Swift, and Louis M. Martini in Napa; J Vineyards & Winery in Sonoma County; and Denner Vineyards and Talbott Vineyards in California’s Central Coast.

Gallo remains the top wine marketer in the U.S. with annual volume of approximately 90 million cases, according to Impact Databank, more than twice that of its closest competitor, The Wine Group. And it continues to add to the portfolio at a steady clip. The play for Rombauer follows two recent purchases in the Central Coast: Hahn Family Wines in June and Denner Vineyards last November.—Daniel Marsteller

Tagged : E.&J. Gallo, Rombauer

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