July 2015 Issue of Wines & Vines

Gallo to buy Asti Winery


Cloverdale, Calif.—E. & J. Gallo Winery entered an agreement to purchase the Asti Winery in Cloverdale for an undisclosed sum, the Modesto, Calif.-based company announced July 20. Treasury Wine Estates revealed its intent to sell the historic structure in late March. The purchase includes ownership of the Souverain wine brand.

Founded in 1881 and known for years as Italian Swiss Colony, the winery is permitted to crush 35,000 tons of grapes per year and has a tank capacity of 750,000 gallons.

Robert Nicholson, the listing agent for the property, told Wines & Vines in March that Asti was the largest winery on the market at that time. The site was expected to draw interest due to its longstanding senior water rights, which date back to 1914.

According to a statement released by Gallo, the company owns 12 wineries located in wine regions throughout California and Washington, and this latest purchase supports the company’s desire to have a larger presence in Sonoma County. The winery is comprised of 535 total acres within the Alexander Valley, with 275 acres planted to vineyard. 

“We look forward to bringing the Souverain brand into our expanding premium portfolio, in order to keep pace with growing consumer demand worldwide,” said Roger Nabedian, senior vice president and general manager of Gallo’s Premium Wine Division.

The sale is scheduled to close on July 31. Terms of the deal were not disclosed.

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