E.&J. Gallo Winery of Modesto adds to its luxury brands in the Napa Valley

E. & J. Gallo Winery has purchased Pahlmeyer Winery in the Napa Valley, another addition to the Modesto company’s luxury portfolio.

Gallo did not disclose the price in Tuesday’s announcement. The deal includes a new tasting room in the southeast part of the valley and a purchase agreement for Pahlmeyer grapes from the Atlas Peak area.

Pahlmeyer wines sell for $30 to $350. They include Bourdeaux-style reds along with chardonnay.

Gallo, the world’s largest wine producer, mainly marketed lower-priced products after its 1933 founding in Modesto. It moved in the 1980s into Napa, Sonoma and other premium regions. It also imports from several countries.

Pahlmeyer dates to 1981, when former attorney Jayson Pahlmeyer and a partner planted vine cuttings from France. The first wine was made in 1986 and was followed by numerous award winners.

“I am thrilled to transition ownership of Pahlmeyer Winery to the Gallo family,” Jayson Pahlmeyer said in a news release. “The two companies share similar principles, and with Gallo’s long-standing commitment to quality, I am confident they will take Pahlmeyer to even greater heights in the future.”

Gallo employs about 6,500 people at its headquarters and elsewhere, making and marketing more than 100 brands. Its holdings in Napa also include Louis M. Martini, William Hill and Orin Swift.

“Pahlmeyer complements our portfolio nicely, allowing Gallo to continue competing in luxury wine and fueling strategic growth for the company,” said Roger Nabedian, senior vice president and general manager of Gallo’s Premium Wine Division, in the release.

The purchase includes two brands: Pahlmeyer and Jayson by Pahlmeyer.