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Published: Wednesday, Jun. 29, 2011

E. & J. Gallo Winery buying Edna Valley Vineyard

The purchase, expected to close in a few weeks, will allow the winery to expand in the Central Coast

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By John Holland | The Modesto Bee

E. & J. Gallo Winery announced Tuesday afternoon that it is buying Edna Valley Vineyard, a winery south of San Luis Obispo.

Modesto-based Gallo has agreed to pay an undisclosed price to Diageo Chateau & Estate Wines Co. and Paragon Vineyard Co., which have held Edna Valley in a joint venture.

Gallo will continue to partner with Paragon as a source of grapes for the Edna Valley Vineyard wines.

The purchase, expected to close in a few weeks, continues Gallo’s move into premium wines from coastal regions of California.

Gallo, which was founded in Modesto in 1933 and has become the world’s largest winemaker, has built or acquired wineries in Napa, Sonoma and Santa Barbara counties.

“Edna Valley will help us expand both our footprint in the Central Coast and in the Chardonnay category,” said Roger Nabedian, senior vice president and general manager of Gallo’s premium wine division. “The brand represents wines from a superior appellation and is well positioned to offer consumers wines of extraordinary value long into the future.”

Located off Biddle Ranch Road, Edna Valley Vineyard produces a range of wines, specializing in chardonnay. They are priced from $15 to $45 on its website.

The purchase includes 62 acres of vineyard.

It’s the second recent sale of a San Luis Obispo County winery.

In December, Justin Vineyards & Winery, one of the oldest and best-known local wineries, was sold to Roll International Corp., owner of Fiji Water.

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