E&J Gallo Winery, the largest winery operation in the U.S., has wrapped up a very active 2015 with the announcement that it has acquired The Ranch Winery in St. Helena, California from Rutherford Wine Studios for an undisclosed amount, according to a company statement.

 

With more than 70 acres, including 26.5 acres of cabernet sauvignon, 4.6 million cases of bottling capacity, eight million gallons of storage, and a winery facility with the capacity to crush 30,000 tons of grapes, the Ranch Winery is a custom crush winery active in both small and large scale production.

 

The strategic acquisition will serve E&J Gallo in two respects. First is location – The Ranch Winery is located within just 15 miles of E&J Gallo’s two other wineries, Louis M. Martini and William Hill, placing The Ranch Winery in an optimal location to handle spillover from large crushes at Gallo’s existing sites. The second is competition – the deal will add to E&J Gallo’s position in the premium wine category, giving it strength to compete with rival Jackson Family Wines in Santa Rosa.

 

"We are excited to have this highly capable winery in close proximity to our other Napa wineries,” said Roger Nabedian, Senior Vice President and General Manager of Gallo's Premium Wine Division in a release announcing the acquisition. “This purchase supports the company's continued growth in the super premium and luxury wine segment.”

 

So far this year, E&J Gallo has acquired the Asti winery, one of the largest winery operations in Sonoma County and the Souverain brand, J Vineyards and Winery in Healdsburg, an additional winery in Monterey County, and 525 acres of high quality vineyards, reports The Press Democrat.

 

This latest acquisition, which is scheduled to close on December 31, 2015, brings the number of wineries owned by E&J Gallo across California and Washington State to 15. However, it also occurs as Napa County regulators are debating the question of placing restrictions upon wineries because of growth and traffic. Any possible restrictions, however, will likely only apply to new facilities, resulting in higher values for established operations with existing permits, according to The Press Democrat.