MODESTO, Calif., June 28, 2011 /PRNewswire/ — E. & J. Gallo Winery (Gallo) announced today an agreement to purchase Edna Valley Vineyard from Diageo Chateau & Estate Wines Company and Paragon Vineyard Company, who have held Edna Valley Vineyard in a joint venture. Gallo will continue to partner with Paragon as a source of grapes for the Edna Valley Vineyard wines.

Edna Valley Vineyard produces a range of wines, specializing in Chardonnay. Included in the purchase are the winery, the brand, and 62 acres of which 44 acres are planted in Chardonnay and Pinot Noir. The vineyard and winery are located just 5 miles from the Pacific Ocean in San Luis Obispo.

This purchase will expand Gallo’s presence and properties in California‘s prestigious Central Coast wine country. In 2004, Gallo purchased the Bridlewood Estate Winery located in the Santa Ynez Valley of Santa Barbara County. In 2007, Gallo purchased the William Hill Estate Winery in Napa.

According to Roger Nabedian, Senior Vice President and General Manager of Gallo’s Premium Wine Division, “Edna Valley will help us expand both our footprint in the Central Coast and in the Chardonnay category. The brand represents wines from a superior appellation and is well positioned to offer consumers wines of extraordinary value long into the future.”

“We are excited to be working with Gallo to continue to grow the world class grapes that provide the foundation for the Edna Valley Vineyard wines,” said John R. Niven of Paragon Vineyard Company.

The transaction is expected to close in the next few weeks. Terms of the deal were not disclosed.

About E.&J. Gallo Winery

Established in 1933 in Modesto, California, by Ernest and Julio Gallo, E. & J. Gallo Winery has become the world’s largest winery and the foremost winery in the art of grape growing, winemaking, distribution and marketing of wines. With seven wineries strategically located in California‘s wine regions and access to grapes from vineyards in all of the premier grape-growing areas of the state, Gallo produces wines in every category, to suit every taste. Gallo imports wines from eight of the major wine growing countries in the world. Some of the brands in Gallo’s wine portfolio include Gallo Family Vineyards, Barefoot Cellars, Louis M. Martini, MacMurray Ranch, Bridlewood, Mirassou Vineyards, Frei Brothers, DaVinci, Martin Codax, Don Miguel Gascon, Ecco Domani, McWilliam’s Hanwood Estate, and William Hill Estate. Recently, the Winery has expanded its portfolio to include distilled spirits with the introduction of New Amsterdam Gin and Familia Camarena Tequila.

SOURCE E. & J. Gallo Winery