Gallo (winery)

GALLO (also stylized Gallo, previously E. & J. Gallo Winery) is an American wine producer and distributor headquartered in Modesto, California. The company was founded in 1933 by Ernest Gallo and Julio Gallo of the Gallo family and primarily produces California wines. It is the largest family-owned winery in the United States and has reported an annual revenue of $5.3 billion.

History

During Prohibition in the United States, Ernest and Julio Gallo grew grapes, selling them to Eastern states, where home winemaking was legal.

thumb|[[Muskrat trappers in Delacroix, Louisiana, 1941, gathered around a large bottle of "Cream of California - California Claret", an early Gallo mass-produced wine]]

The winery was established in the fall of 1933, The brothers studied commercial oenology by reading pre-Prohibition pamphlets published by the University of California, which they retrieved from the basement of the Modesto Public Library. Julio focused on the production of wine, and Ernest on its sale. Early operations utilized a single tractor operated on consecutive 12-hour shifts. In their first year of activity, the brothers produced 177,000 gallons of wine. As the US wine market gradually shifted away from lower-cost wines,

During the 1980s and 1990s, Gallo bought wine labels from Europe and Australia. Julio Gallo died in a car accident on May 2, 1993.

In 2002, Gallo purchased the Louis M. Martini Winery, providing the company with its first location in Napa Valley. On September 14, 2007, Martha Stewart Living Omnimedia announced a partnership with Gallo to produce a brand of wine labeled "Martha Stewart Vintage." In 2011, Gallo sold Hornsby's hard cider to the C&C Group for an undisclosed amount and partnered with the Boisset Collection to purchase the Mondavi estate. In 2017, Gallo bought the Stagecoach Vineyard in Napa Valley.

In April 2019, Constellation Brands Inc. announced a deal to sell wine brands, including Clos du Bois and Mark West, to Gallo for $1.7 billion. The deal was later amended, twice, to exclude sparkling wine brands Cook's California 'Champagne' and J. Roget American 'Champagne' (both retained by Constellation for four years post final agreement). Under the amended terms, Paul Masson Brandy was divested to Sazerac Company Inc., while Sheffield Cellars and Fairbanks were sold to Precept Brands LLC, and its High Color Concentrates division was divested to Vie-Del Company. The deal, now with an adjusted price agreement of $1.1B, included a $250 million earn-out if brand performance provisions were met over two years after closing. The agreement was finalized on January 6, 2021, for $810 million.

In 2020, the University of California, Merced announced plans for the Ernest & Julio Gallo School of Management, the first new school established at the campus since its opening.

In 2024, the company shortened its name to GALLO.

Legacy

Ecological impact

In collaboration with the Wine Institute and the California Association of Winegrape Growers, Gallo helped develop and implement the Code of Sustainable Wine Growing Practices, which addresses viticulture, grape growing, winemaking, and facility operations, with the overall goal of reducing the environmental impact of wine production.

Gallo received ISO 14001 certification (a standard created to reduce environmental impact) from the International Organization for Standardization. for allegedly channeling water from the Russian River into an unlicensed reservoir

In March 2015, the California Department of Toxic Substances Control sued Gallo Glass Company in Modesto over the alleged improper storage and recycling of hazardous dust used in wine bottle production. The company said the material was being recycled in accordance with standard industry practice.

In February 2023, the Central Valley Regional Water Quality Control Board ordered Gallo to pay $378,668 in fines for discharging irrigation and wastewater into the Merced River, which the board stated posed a threat to the health of fish and other aquatic life.

Vineyard trials

Viticulturists at the company conduct trials on different grape varieties across various California climates and soil types to assess growth efficiency. One of the varieties that Gallo has been trialing in the San Joaquin Valley is the French wine grape Ederena.

Awards

Gallo was named the "Bon Appétit Winery of the Year" in the 1996, 1998, and 2001 San Francisco International Wine Competitions.

Intangible Business, a brand valuation firm, rated Gallo as the world's "Most Powerful Wine Brand" in 2006, 2007, 2008, and 2009.

Controversies

Legal disputes

In 1986, Ernest and Julio took legal action against their younger brother, Joseph, for using the Joseph Gallo Farms name on cheese products. Joseph hit back with a counterclaim, alleging that the two brothers had conspired to deprive him of his rightful inheritance, including the winery itself, which his attorney argued was originally founded by their father. Joseph lost on both counts and was required to rebrand his business as Joseph Farms.

In the 1990s, Gallo Winery agreed with Gallo Pasta (a Spanish company) that the latter would not sell its pasta in the United States. Gallo filed a cease-and-desist order in April 2009, against "The Spanish Table", a Seattle-based specialty food retailer, for carrying the pasta despite the previous agreement with the manufacturer.

In October 2019, a lawsuit was filed in the Eastern District of California that claimed Gallo used patented technology without a license to develop their irrigation system.

Labor relations

The United Farm Workers (UFW) began boycotting Gallo in the summer of 1973 after Gallo did not renew their contract and signed with the International Brotherhood of Teamsters (IBT). The dispute occurred during a broader period of labor conflict in California agriculture in the early 1970s. Following the contract expiration, the UFW called a strike beginning June 27, 1973, and organized a nationwide consumer boycott of Gallo products.

The conflict reflected broader tensions between the United Farm Workers and the Teamsters union, as growers across California signed agreements with different labor organizations during the period.

Led by Cesar Chavez, the UFW alleged that Gallo had worked out a "sweetheart deal" with the IBT that offered fewer protections. The UFW also alleged that workers did not agree to Teamster representation. An estimated 10,000 workers and supporters of the UFW marched 100 miles over the course of a week to the Gallo winery in Modesto.

Nationwide supporters of the boycott protested the buying and selling of Gallo wines, including student groups at Harvard University in Cambridge, MA, who demanded a boycott of Gallo by the university and picketed local stores. In October 1974, approximately 70 demonstrators picketed a Harvard-area store, urging customers to boycott Gallo wine during the dispute. The boycott also coincided with broader legislative changes in California, including the 1975 California Agricultural Labor Relations Act, which established formal union election procedures for farmworkers.

The boycott against Gallo was called off by the UFW in 1978, after the union felt it had improved workers' rights of representation in labor disputes.

In October 2009, the California Agricultural Labor Relations Board (CALRB) revoked a 2007 election to eject the United Farm Workers from Gallo Winery, citing interference from Gallo. This was the second time in a decade a vote to remove the union was overturned due to allegations of Gallo illegally trying to influence proceedings; the other was a 2003 ruling in which the CALRB threw out an election, citing a foreman who improperly requested signatures for the petition for the vote. Gallo appealed the 2003 decision.

In 2023, Gallo laid off 355 of its California workers after a Texas company, Republic National Distributing Co. (RNDC), took control of handling partnerships with chain retailers in California.

Wine brands

thumb|A bottle of André.

thumb|A bottle of Barefoot White Zinfandel.

thumb|right|An open bottle of Carlo Rossi jug wine with a [[drinking straw.]]

thumb|A bottle of Gallo Family Ruby Cabernet.

In addition to the Gallo Family Vineyards brand, the company makes, markets, and distributes wine under more than 100 other labels.

The company also makes the low-end fortified wines Thunderbird and Night Train Express.

André was one of the best-selling brands of sparkling wine in the United States in 2018. It is available in varietals including Brut, Extra Dry, Cold Duck, Blush, Spumante, Strawberry, and peach-flavored California Champagne, among others. André's California Champagne is bulk-fermented. Under a 2006 agreement between the United States and the European Union regarding wine labeling, André is permitted to continue using the term "Champagne" on its labels under a grandfather clause. One champagne expert said the wine is "like ginger ale – pale yellow in color, lemony and on the sweet side, with maybe an apple flavor as well and low bubbles".
Carlo Rossi is a brand of wine produced by the E. & J. Gallo Winery. The brand was named after Charles Rossi, who starred in TV ads for the brand in the 70s and was a relation of the Gallo family by marriage. Carlo Rossi is referenced in popular culture in E-40's single, "Carlos Rossi," and also in Lil B's song, "Swag Like Ohio".
Boone's Farm was formerly a brand of apple wine produced by the E. & J. Gallo Winery. Now, flavors are malt-based instead of wine-based due to changes in tax laws. The brand saw success within college campuses due to its low price. In some US states, such as Utah, some Boone's Farm products are labeled as malt beverages and not as flavored apple/citrus wine products, as some state liquor laws prohibit the sale of wine in grocery and convenience stores. The line offers 17 varietals and blends: Zinfandel, Shiraz, Merlot, Pinot noir, Cabernet Sauvignon, White Zinfandel, Moscato, Pinot grigio, Sauvignon blanc, Chardonnay, Riesling, Sweet Red, Brut Cuvee Chardonnay sparkling wine, Extra Dry sparkling wine, Pinot Grigio sparkling wine, Moscato Spumante, and Pink Cuvee sparkling wine. In January 2020, Barefoot Wine announced the launch of a line of wine-infused hard seltzer.

===Additional brands===