Gallo plans bottling plant in South Carolina. What it means for Modesto headquarters.
E.&J. Gallo Winery plans to build a South Carolina bottling plant, a major expansion for the Modesto-based company.
The plant would employ about 500 people but not affect any jobs in Gallo’s hometown, the industry giant said. The headquarters, in fact, has been hiring by the hundreds to meet the growing demand for wine.
The new plant would be in Fort Lawn, a rural town of less than 1,000 residents in the north-central part of South Carolina. It’s about 45 miles south of Charlotte, N.C.
It would package various Gallo products in bottles, boxes and cans. Some of the inventory would ship from the port of Charleston to export markets. The site also has rail.
Gallo is working with Chester County officials to win approval for the plant, expected to cost about $400 million. No timeline was announced.
Gallo has become the world’s largest wine producer since its founding in 1933 by brothers Ernest and Julio Gallo. It employs about 7,300 people around the world.
Most of the volume comes from the Central Valley, but the company also operates in premium California regions. It has acquired wineries in Washington and New York state, some of them via its $810 million purchase of part of Constellation Brands in January. Gallo imports from several nations.
The headquarters off Yosemite Boulevard has more than 3,000 people working in winemaking, sales, glass production, management and other jobs. Nothing would change with the South Carolina plant, a spokesperson told The Modesto Bee by email Monday.
“The Modesto site remains ideally located to support the growth of our Central Valley wine portfolio,” the spokesperson said. “In the past year, in Modesto, we have hired over 300 team members and have plans to hire additional team members in the months ahead.”
Investment of about $400 million
The family-owned business usually does not disclose financial details. The $400 million estimate for the new plant emerged last month as Gallo worked with South Carolina officials on the plan.
The money would be invested over eight years, including warehousing and distribution of some of the California-bottled products, WineBusiness.com reported. The plant could eventually make its own aluminum cans, a new trend in an industry dominated by glass bottles and plastic-lined cardboard boxes.
“This is really intended to be our East Coast home for the Gallo enterprise for decades and decades to come,” Rob Donoho, who oversees global chain functions, told South Carolina lawmakers last month.
Tasting room dispute emerges
Part of the proposal involves Gallo being allowed to open three tasting rooms around South Carolina, requiring an exception to state alcohol law. The idea drew opposition from restaurants, retailers and wholesalers concerned about unfair competition.
The state Senate voted Thursday to grant the exemption. It now goes to the state House and then to Gov. Henry McMaster, who has signaled his support.
“I look forward to signing this bill into law and welcoming Gallo to South Carolina,” the governor wrote.
Other officials welcomed the idea of the Modesto company boosting the economy of the former textile mill town.
“This is a world player choosing to locate only its second (bottling and distribution center) in this teeny town,” said Sen. Mike Fanning, whose district includes parts of Chester County.
