The
largest U.S. winery by sales volume, E. & J. Gallo (Gallo), is
terminating its longtime in-house distributor, Gallo Sales Co. Inc.,
and laying off 355 employees across California. The
California-headquartered and family-owned wine producer is reportedly
outsourcing its California operations to a Texas company, Republic
National Distributing Co.
- Gallo declined to disclose financials, sales volumes, or distribution statistics.
- The
distributor Gallo Sales Co. Inc., established in 1933 by Gallo's
founders Ernest and Julio Gallo, plans to close its facilities in
March.
- According to Ted Seburn, Gallo's president of sales,
“RNDC has been a great distributor for Gallo brands nationally, and we
look forward to expanding our relationship with them as we transition
our chain business in California."
- Gallo had approximately $5B in sales in 2019, and the family's net worth was about $12.4B as of late 2020, Forbes estimates.
- Gallo owned 23,000 acres of California and Washington vineyards as of 2021.
- In 2021, Gallo acquired 30 wine brands and five wineries from Constellation for $810M, one of the most significant wine acquisitions in history.
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