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E. & J. Gallo Winery Entered Napa Valley with Another Brand, This Time Franciscan Estate, Under a $ 1.7 Billion Contract to Acquire 30 Wines and spirits of Constellation Brands. The agreement also included six winemaking facilities spread across Washington, New York and California.
The transfer of brands and wineries by Constellation to Gallo, the largest wine company in the United States, marks part of Constellation's move to cheaper wines, and a vote of confidence in virtually all of its Napa brands , with the exception of Franciscan.
While the sale mainly included wines under $ 11 a bottle, such as Ravenswood, Wild Horse, Mark West and Clos du Bois, Constellation will remain loyal to Napa wine brands such as the Robert Mondavi family of brands, Schrader Cellars, Mount Veeder Winery and the Prisoner Wine Company.
Bill Newlands, president of Constellation, said in a statement: "This decision will help strengthen the organizational focus on a more premium brand of premium wines and spirits that will better position our company to deliver accelerated growth and shareholder value. . "
For Franciscan, the transfer puts an end to the chapter of the vineyard under Constellation, during which he enjoyed a significant presence in Napa which has been significantly reduced over time.
Founded in 1973, the first owners of the Franciscan ran out of funds and left the cellar even before it opened. The founders of Silver Oak, Justin Meyer and Ray Duncan, bought the estate in 1975 and sold it again a few years later.
The Eckes family then owned the estate throughout the 1980s. In 1985, he was associated with wine magnate Agustin Huneeus. As Franciscan President, Huneeus would have put the fortune that revolved around him before being sold to Canandaigua in the 90s. Brands – later to become Constellation. This agreement also includes Mount Veeder Winery, which Constellation plans to retain.
Huneeus Vintners, Huneeus' new post-Franciscan company, will buy Prisoner Wine Company from vintner Dave Phinney and in 2016 will also sell the brand to Constellation for around $ 285 million.
Constellation then closed the Franciscan property of Galleron Road and Highway 29, just south of St. Helena, in 2017, and reopened the premises last year, but as a new tasting room of the prisoner.
Now, with its desiccated profile and no longer connected to a property in Napa, we do not know what the future holds for the Franciscan brand under the auspices of Gallo. But, with its new owners, the brand is now in the company of Napa brands such as Orin Swift and Louis Martini, as well as renowned properties such as Stagecoach Vineyard.
In a press release on Wednesday, Chief Executive Officer Joseph Gallo said, "We are committed to remaining a family business focused on growing the wine industry. As we continue to invest in our luxury and luxury businesses, this acquisition offers a great opportunity to introduce new consumers into the wine category. "
The sale is subject to regulatory approval and is expected to close in the first quarter of 2020 in Constellation.
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