Modesto's Gallo buys another coastal-area winery

MODESTO -- E.&J. Gallo Winery announced Friday that it is buying Courtside Cellars, its second venture into San Luis Obispo County in as many years.

The Modesto-based company is paying an undisclosed sum for the 12-year-old winery in San Miguel, which includes 34 acres of vineyard and 60,000 tons of grape-crushing capacity.

The purchase comes about 13 months after Gallo acquired Edna Valley Vineyard, its first foray into the coastal county.

Gallo plans to use its new property for the Edna Valley and Bridlewood brands. The latter is in Santa Barbara County and was bought by Gallo in 2004.

"We've been expanding our presence in the Central Coast over the past few years and consider the region to be a key part of our premium wine strategy moving forward," said Roger Nabedian, senior vice president and general manager of Gallo's premium wine division. "We are excited to have this highly capable winery to support our Bridlewood and Edna Valley Vineyard businesses."

Courtside will retain a site in San Luis Obispo County for its Tolosa Winery brand.

The purchase is yet another effort by Gallo, the world's largest winemaker, to build up its premium business to go along with the lower-priced products it has made since its founding in Modesto in 1933.

In June, the company entered the Pacific Northwest with its purchase of the Columbia Winery and Covey Run labels from Ascentia Wine Estates.

Gallo has been adding to its imported wine portfolio, and has released the New Amsterdam line of gin and vodka.

The latest deal is expected to close next week.