Gallo expands vineyard holdings in Napa Valley

E&J Gallo Winery announced Tuesday that it has purchased 642 acres in the Napa Valley as the nation’s No. 1 vintner makes further inroads into the North Coast wine industry.

The Modesto-based company said an affiliate bought the Cypress Ranch and a portion of the Palisades Vineyard, representing 258 acres of cabernet sauvignon, merlot, zinfandel and malbec vineyards. The property is next to the company’s Sun Lake Vineyard, where it farms 100 acres of planted vineyards. The purchase price was not disclosed.

“The purchase of Cypress Ranch and Palisades Vineyard continues Gallo’s commitment to having vineyards in the premier winegrowing appellations in California,” said Roger Nabedian, senior vice president and general manager of Gallo’s premium wine division, in a statement.

“These two vineyards are a great addition to our portfolio and are key to our growth of luxury wines,” Nabedian added.

The deal comes after Gallo in March announced it had bought Healdsburg-based J Vineyards & Winery, which was founded almost 30 years ago by Judy Jordan and carved out its name through high-end sparkling wine. That sale also included more than 300 acres spread over nine vineyards within the Sonoma Coast and Russian River Valley American Viticultural Areas.

Analysts applauded the J purchase because they said it would give Gallo more play in the premium sparkling market.

Last year, Gallo purchased two North Coast properties totaling more than 500 acres in Solano County. It owned more than 3,000 acres in Sonoma County prior to the J Vineyards & winery purchase.

You can reach Staff Writer Bill Swindell at 521-5223 or bill.swindell@pressdemocrat.com. On Twitter @BillSwindell.