Modesto-based Gallo Winery acquires coastal producer, including tasting room in Carmel

Another premium brand from the Central Coast has joined E.&J. Gallo Winery of Modesto.

The company announced Tuesday that it has purchased the Hahn Family Wines portfolio. It comes from vineyards in the hills near the Monterey County coast.

Hahn sells its wines online for $15 to $90 a bottle. The family will retain ownership of the vineyards while Gallo markets the products.

Gallo has become the world’s largest producer since its founding in 1933 by the late Ernest and Julio Gallo. It relied for decades on lower-priced grapes from the San Joaquin Valley and moved into premium regions in the 1980s.

“I am pleased to transition our Hahn Family Wines portfolio to the E.&J. Gallo Winery,” President Thomas Duhameau said in a news release. “Not only do we share similar family values, but both organizations are deeply committed to creating a sustainable future.”

The purchase price was not disclosed. The deal includes a Hahn tasting room in the coastal town of Carmel-by-the-Sea.

Hahn is the nation’s 40th largest winery, according to an annual report from winebusiness.com. It estimated U.S. sales at about 450,000 cases. Gallo was at about 100 million.

Nicky and Gaby Hahn founded the winery in 1980. Today, it has about 1,100 acres in the Santa Lucia Highlands and the Arroyo Seco and Paso Robles areas. The wines are sold under the Hahn, Smith & Hook and Hahn SLH labels.

“We are honored to welcome their brands into our portfolio,” said Steve Carlotti, senior vice president and general manager of commercial brands at Gallo. “This acquisition reinforces Gallo’s strategy for continued growth while supporting our goal of delivering superior quality at great value to our consumers across all usage occasions.”

The Central Coast wine region includes Santa Cruz, Monterey, San Luis Obispo and Santa Barbara counties. Gallo acquired several labels in a 2021 purchase from Constellation Brands. It has added others in smaller transactions over the years.

Gallo also sells wine from Napa and Sonoma counties, the states of Washington and New York, and several foreign nations. A new plant in South Carolina handles distribution to the East Coast.

The trade publication’s second-largest producer is The Wine Group, including the former Franzia Winery near Ripon. Delicato Family Wines near Manteca is fourth. Bronco Wine Co. near Ceres is sixth.