Gallo buys Las Rocas brand from European Cellars

[Robin Garr]

GALLO BUYS LAS ROCAS BRAND FROM EUROPEAN CELLARS

MODESTO, CA- February 6, 2009– California’s E. & J. Gallo Winery has purchased the Las Rocas brand of Spanish wines from European Cellars. Las Rocas wines are produced by Bodegas San Alejandro in Miedes, Spain, and European Cellars’ founder, Eric Solomon, will continue to consult with the winemakers on the products.

Gallo will begin importing Las Rocas wines in April, 2009. With regard to the new agreement, Mr. Solomon says, “I am looking forward to help both the winery and Gallo achieve the highest level of success and recognition for this brand.”

The progressive Bodegas San Alejandro cooperative was formed in 1962, in the Calatayud Denomination of Origin. Calatayud is in the Aragon region, about 150 miles northeast of Madrid. Las Rocas Garnacha is priced at $12, and the Viñas Viejas Garnacha is priced at $18. Both wines are 100 percent Grenache.

Las Rocas wines were introduced in the U.S in 2003 and won immediate critical acclaim. They have been perennially rated as a quality leader in the growing category of premium Grenache wines sold in America. Today, the wines are distributed around the world.

Yikes!!!!

Wow! I'm surprised..... But happy for Eric...

Yikes!!!!

Hmm. Why "Yikes!!!!", Carl?

Seems Las Rocas/Solomon decided the money was good, and Las Rocas is entirely the kind of brand Gallo wants to market. The original vision/intent of the brand, after all, was to make copious amounts of wine and sell them in the cheapo category. And Gallo does an impressive job at that.

You are aware, aren't you, that Gallo has been acquiring more imported wines to market in the US? And that they have a credible NZ Sauvignon Blanc, and a very reputable Albarino, just as two examples? Why is Las Rocas necessarily any different if Gallo is bringing it in rather than Solomon bringing it in?

So long as they leave the production alone, we'll be happy. They have screwed around with some of their U.S. acquisitions.

Gallo is also importing Martín Códax albariño and I don't think the quality has dropped (it was already a mass brand before they took over). Plus they are only buying the Las Rocas brand, not the winery, and the agreement indicates Eric Solomon will still be directing the blending.

Gallo is also importing Martín Códax albariño and I don't think the quality has dropped (it was already a mass brand before they took over). Plus they are only buying the Las Rocas brand, not the winery, and the agreement indicates Eric Solomon will still be directing the blending.

And what does El Mundo...and Victor de la Serna....think of the Las Rocas brand?

Does it have the same image in Spain as it does in the US? Is it widely distributed and well known in Spain?

At first this was only sold on the US market (Eric designed it for it), but now it's also sold in Europe. Nice entry-level grenache - not much more to it, basically. It's not that well known in Spain - lots of competition locally!

entry-level grenache - not much more to it, basically

I think you described it well, and concisely too.

And FWIW, those are pretty much my feelings about Las Rocas too. With the addition that, in the nature of things, it tends to be wildly inconsistent.

Thanks for the background, Victor.

I would guess that you also heard that Gallo has bought the US marketing rights to Alamos. They will not be dealing with the Catena wines. I guess we will just have to wait and see how it plays out. I am ITB out here in Oregon.

entry-level grenache - not much more to it, basically

I think you described it well, and concisely too.

And FWIW, those are pretty much my feelings about Las Rocas too. With the addition that, in the nature of things, it tends to be wildly inconsistent.

Thanks for the background, Victor.

I agree, a decent drink at the price point but nothing you want much of in the cellar.
Walt

For all the problems I have with Gallo--and they are legion!--they've done well with many of their acquisitions in the sense that they've stayed out of the winemaking and concentrated on improving distribution, which is their long suit anyway. I think they did a good job with Whitehaven in New Zealand and with Louis Martini in Napa/Sonoma.

BTW, they haven't purchased the Alamos brand; they've just bought the distribution rights. From what I hear, this may be a first step to actual acquisition. I find it interesting that Catena built a separate winery for the Alamos wines, and that Gallo entered the picture shortly thereafter.

As for Las Rocas, that was an Eric Solomon creation from the beginning, as noted; I remember Parker called the '02 "one of the great discoveries of his lifetime" or some such nonsense. I suppose you could make an argument that Las Rocas paved the way in the US for a whole host of inexpensive garnachas from Calatayud, Campo de Borja, etc. They're certainly popular now!

I think they did a good job with Whitehaven in New Zealand and with Louis Martini in Napa/Sonoma.

I disagree about the Louis Martini wines. I think they have deteriorated considerably since Gallo took over. They seem to do better with the overseas brands.

Carl, Why do you believe they've done poorly with Martini's wines?

Dave, I believe Parker's quote had to do with a "greatest value" , not greatest wine discovery. Big difference....

mark

From what I have seen over the years with Gallo is that they start out as great value. With the Martini Sonoma Cabernet I was very impressed with the first couple of vintages. With the 2006 it was not near as good as the previous vintages. To me it did not have the depth and character. It still is a pretty good deal at $12. I also think their Gallo Sonoma brand is not what it used to be.

I could well be wrong but my belief is that pressure from the marketers causes some of their domestic properties to produce more, and that sometimes affects the quality of the product. The Martini Sonoma Cabernet that Michael mentions is a good example. Another is Mirassou. Admittedly they were in decline before Gallo bought them, but they have since declined more rather than the hoped for improvement.

I can't speak for Mirassou. I've only tasted their line-up once. It was the latest vintage. All of the wines seemed varietally correct, but that was about it. Nothing exciting.

However, with Martini, Mike Martini seems to be fully in charge there. I don't believe that has changed. He's making some great wines. Especially out of the Monte Rosso Vineyard. His Zins and Cabs from there are beautiful. Having tasted this whole line-up from the '04 vintage, I will state I believe the '04 and the '05 to be better than the '06. But I chalk that up to vintage rather than intervention in winemaking practices. I guess only time will tell, but I think you guys are condemning unfairly.

Interestingly, in the past, I've stopped buying and even worse, stopped even tasting anything Gallo got their hands on. My thought was that they would turn their new ventures into mass factory making swill. Why I thought this, is anyone's guess. But I must have listened to someone.

We'll have to see what happens with Las Rocas. I like the wine, both the regular and the old vines. And it surely doesn't cost much to taste these year in and year out. I believe, that as long as Eric is still overseeing the production, there will be NO change. With Gallo taking over the financial side of things, who knows, maybe the wine will get even better fruit. We'll see.

mark

I would be curious to see what the production levels were on the Martini 2004-2006. It certainly has been my experience with these types of Gallo brands that the first few years the quality definitely goes up.