Gallo buying Asti Winery in Sonoma County

E.&J. Gallo Winery is buying a premium Sonoma County producer that dates back 134 years and was once known as Italian Swiss Colony.

Gallo, based in Modesto, is paying an undisclosed sum for Asti Winery, including 275 vineyard acres and its current brand, Souverain.

Gallo has mostly made lower-priced wine from the San Joaquin Valley since its founding in 1933, but it also has been a major presence in higher-end coastal regions for a quarter-century.

The Asti website lists bottles for $15 to $40, including cabernet sauvignon, merlot, chardonnay and sauvignon blanc.

“We are thrilled to add the Asti Winery and vineyards to our North Coast fine wine operations,” said Roger Nabedian, senior vice president and general manager of Gallo’s premium wine division, in a news release.

Asti is one of Sonoma’s largest wineries, capable of handling about 35,000 tons of grapes per year. The purchase includes an event center at the site, in the northern part of Alexander Valley. The deal is scheduled to close July 31.

Italian immigrant Andrea Sbarboro founded the winery as Italian Swiss Colony in 1881. It was in the Sonoma County community of Asti, named for a city in Italy. Like Gallo, this company was a major producer of low-cost wines in the 20th century.

The Souverain brand started at a Napa winery in 1944, moved to Sonoma County in 1973 and has been at its current site since 2006.

“The property is filled with rich history and is located in a growing wine region that consumers recognize as being among the world’s best,” Nabedian said. “We look forward to bringing the Souverain brand into our expanding premium portfolio, in order to keep pace with growing consumer demand worldwide.”

The purchase comes just four months after Gallo purchased J Vineyards & Winery in Healdsburg. Its other Sonoma brands are Frei Brothers Reserve, Laguna, MacMurray Ranch, Rancho Zabaco and Gallo Family Vineyards Estate.

Gallo’s domestic production also takes place in the Napa Valley, Central Coast, San Joaquin Valley and Washington state. It imports wines from Italy, Spain, Germany, Argentina, Australia and New Zealand.

This story was originally published July 21, 2015 at 2:15 PM with the headline "Gallo buying Asti Winery in Sonoma County."