Gallo Sonoma - stewardship of Ernest and Julio Gallo Winery - Cover Story

A new generation is shaping the future of the world's largest winery

The E.&J. Gallo story was one of the 20th century's post-prohibition big wine stories, maybe the biggest, at least in California. You know that one. Two young guys from Modesto, California, building the world's largest wine empire. That empire was built on a base of inexpensive table wines and even cheaper street wines. One might not always admire the wines but one had to salute the marketing genius and the dedication to consistency and quality (within the category) that brought Gallo to the top.

It's not a new story that Gallo has long had vineyard interests in premium wine-growing regions, notably Sonoma County, nor is it particularly new that some of those North Coast wines have been very good, indeed. That shouldn't be a big surprise, given that dedication to quality that has always been a Gallo hallmark.

So what's the excuse for a Gallo redeaux? The way I see it, just as Gallo set the standards for inexpensive table and jug wines of the 20th century in California, they are bidding to set the standards for the super-premium California wines of the 21st century. Gallo has, of course, an outstanding team of winemakers, both at the mother ship in Modesto and at Gallo Sonoma in Dry Creek Valley. But what's driving Gallo winemaking now as never before is the vineyards.

Let's do a little recapping:

* Gallo owns close to 15,000 acres of California vineyard land. That puts them in a tight race with Southcorp of Australia for the world's largest wine-grape owners;

* More importantly, from a quality standpoint, more of that vineyard land than ever before is in coastal growing regions. There's 3,000+ acres in Sonoma (Gallo is the largest vineyard owner in Sonoma), plus the recent purchase of 650 acres near Paso Robles;

* Gallo is no stranger to coastal vineyards. One of the first wines Ernest and Julio Gallo made after Repeal in 1934 was a Sonoma County Zinfandel, made from grapes purchased from the Frei family in Dry Creek Valley, so the Sonoma equation has been there from the beginning. As early as 1947, Gallo entered into a contract with the Frei family regarding the site where the Gallo Sonoma facility is now in place. In 1977, Gallo purchased the facility outright.

As for the future, Gallo is continuing vineyard expansion (as on the Central Coast) but has also moved into brand extensions, including wines from Italy, as the family-owned company moves to become a complete player in the global wine market of the 21st century. (See sidebar, The Gallo California Portfolio.)

But the most exciting project underway at Gallo Sonoma is not taking place in the vineyards nor in the physical plant, but in the Zen of the operation, how it works and who is driving it.

An example: E.&J. Gallo has always been at the head of the pack, technically, with vineyard and winery experiments. As early as 1947, Gallo began a research program to evaluate various viticultural techniques and pest control. Information from the program was often shared with Gallo growers and the winery established what is believed to be the industry's first formal grower relations program. An enology research program was established in 1954, which included studies in cold fermentation, yeast and the impact of oak barrels on aging.

However, in the past, many of those experiments were drowned in a sea of wines blended for marketplace consistency or put on the back burner for other reasons. Now, those experiments are beginning to see shelf space as a third generation of the Gallo family comes into its own in viticulture, in winemaking and in the market. Here are three key players, all grandchildren of Julio Gallo:

* Caroline Bailey takes the Gallo Sonoma wines and the new brands to an international market and to a younger market, largely unaware and/or uninterested in Gallo's notorious days of Thunderbird and Night Train, as why should she be?

* Matt Gallo manages the North Coast vineyards with an eye to emerging varietals, to experimental plantings that will capture the essence of the vine and the soil.

* Gina Gallo, the third generation winemaker at Gallo Sonoma (there are five players on that team) is following the lead of what's happening in the vineyard to produce wines of a particular place and vintage: no longer is everything molded to meet a mass audience demand for consistency. Now it's OK for Gallo wines to taste different from vintage to vintage, from vineyard to vineyard.

To fine-tune the example a bit, Matt Gallo said during a recent tour of a few of the Sonoma Vineyards that last year alone, more than 500 small batch wines were made based on vineyard experiments, ranging from differences in ground cover to vine spacing, to root-stock and clonal selection. These wines are first made in very small batches of 100 pounds or slightly more. "If they look good at that level, we'll go to about a two-ton experiment so we can do barrel evaluation. Or sometimes we might go from a 100-pound lot to full production," he said.

One project that Matt Gallo is very enthusiastic about is the Sonoma Leafer, which was developed at Ag Industrial Engineering (AIM) in Lodi and was first tested in 1995 by Gallo in Sonoma. Its use will be expanded this year, according to Matt Gallo.

The Leafer is mounted on a trailer which is pulled through the vineyards by a tractor. The Leafer itself is a propane-powered steam generator that superheats deionized water to 600 [degrees] F. The steam is then directed through a hose and nozzle onto the vine canopy at the fruiting level, reaching the leaves at about 400 [degrees] F, according to information from the Gallo Sonoma Winery. The steam wilts the leaves, causing them to dry and fall, while the fruit and the leaves at the top of the canopy remain.

This, of course, opens up the canopy to bring more sunlight to the fruit and has the added benefit of aiding in hand-harvesting. According to Matt Gallo, using the Leafer also helped eliminate insects.

The development of the Leafer was a collaboration between Gallo Sonoma and AIM, according to AIM president Claude Brown. Brown said the Sonoma Leafer has a clear advantage over handleafing. "Pulling the leaves by hand results in some broken canes and damage to young, tender grape clusters. It also leaves a small wound in the grape berry which can lead to further damage, and may also attract insect pests."

There's a curious story behind the invention of the Leafer. Jeff Lyon, a viticulturist at Gallo Sonoma, was burning trash near some vines one morning when he noticed that some of the leaves were wilting on the canes, exposing the grape clusters. "I wondered if we could use heat to remove leaves from the vines without damaging the fruit, and Matt gave me the go-ahead to give it a try. From that moment on, we began to work to perfect the use of a heat source to remove leaves. Some of the trials included flame sources, like propane. We also tried infra-red heat. Finally we reached a point where we needed more engineering expertise, and we took the idea to AIM. AIM then came up with the idea of super heated steam."

Gina Gallo made experimental lots of wine from fruit harvested during the Leafer trial and the wine showed excellent results.

Matt Gallo also is tracking the always critical question of quality and quantity. "It's a question we are very concerned with here," he said. "One thing we do is not base it on tons per acre but on yield per foot of cordon. Therefore, different trellis systems, different soils, many factors go in the equation."

Matt Gallo's vineyard calculations even involve when to mow the ground cover between the rows. "If we mow it at the wrong time, it disturbs the insects which normally live in the ground cover rather than on the vine. If there is no ground cover, they hop up into the vine. So we try to mow to match the life cycle of the insect or stagger the mowing. Basically, we have to look at the entire ecosystem."

Returning to the various experimental projects, Matt Gallo said he was very pleased with plantings of Sangiovese and Barbera, which will be produced as commercial wines.

Gina Gallo, a member of the winemaking team at Gallo Sonoma, was tracking down a barrel of 1996 Monterey County Pinot noir in the enormous barrel storage area. One longed for a bicycle or at least a skateboard. It's no wonder it took her a little time to find it. The building is 130,000 square feet. It's half underground and maintains a temperature of between 55 [degrees] and 65 [degrees] F. There's a regulation soccer field on top (with plenty of room leftover) where winery and vineyard workers can get their kicks. The building has a storage capacity of 50,000 barrels. There are 40,000 now in place.

"We have oak here from everywhere," Gina Gallo was saying, "and we can track it all right through to the bottle."

Along part of one wall were barrels of experimental wines (stacked three-high rather than the six-high stacks elsewhere). The experimental section contained enough barrels to fill many North Coast wineries.

"For my experimental wines, I have small stainless tanks that can hold about two tons," she said. She found a barrel of Pinot noir made in an open top-tank which had been punched down by hand. It was marvelous. "This year, I want to develop some kind of mechanical punch-down and increase production of this."

Another experiment was a barrel of Pinot noir made by carbonic maceration. It was less than marvelous and she quickly agreed that it lacked the charm and fruit usually associated with Pinot noir. "But as part of a blend, it might work, right?" she asked, as if filing the question away for future debate.

Tasting through more experimental barrels, plus many of the regular wines, Caroline Bailey reminded that Gallo Sonoma is growing bigger by growing smaller. It isn't just a super-size winery making thousands and thousands of cases of uniform wines, but a super-size winery making dozens of small-batch wines, honing in on vineyard characteristics and other components.

The five members of the winemaking team - including Marcello Monticelli - taste the competition on a weekly basis. "It's very important that we don't develop palate blindness," Gina Gallo said. Unlike many winemaking teams, Gina Gallo said the five winemakers there do not specialize. "I think by each of us being able to do anything, we can help with problems and develop new approaches," she said.

(Besides Gina Gallo, the team, which is headed by Marcello Monticelli, includes Bob Bertheau, Ted Coleman [a grandson of Julio Gallo], Skip Wright and Troy McEnery.)

Being finished just in time for this year's crush is a new gravity-flow receiving area for white wines. A similar area will be built later for the incoming red wines, which will go to rotary fermenters, then direct to press.

Currently, about 25,000 tons annually are received there.

It was strange, walking through a battery of stainless steel tanks - the newer tanks are all smaller, reflecting the shift in winemaking to vineyard lots and small production lots - and find the core of the winery, built in 1885 by Charles Dunz and later bought by the Frei family, then in turn by the Gallos. The enthusiastic young woman I was following from tank to tank, as she drew off samples of 1995 Zinfandel and 1994 Cabernet about to be bottled, was, after all, part of a long Sonoma Valley winemaking tradition.

Resources:

Ag Industrial Engineering, P.O. Box 53, Lodi, Calif. 95241; (209) 369-1994.

RELATED ARTICLE: THE GALLO CALIFORNIA PORTFOLIO

These wines are all available nationally in first release and range from about $8 to $11 suggested retail.

Indigo Hills. These wines are made from North Coast grapes, in most cases with the bulk of the grapes coming from Mendocino County. The prices are mostly in the $10-and-under-range and the quality represents very good value at that price. Current releases include:

* Brut Chardonnay sparkling wine, non-vintage made from 98% Chardonnay and 2% Pinot blanc, with residual sugar of 1.00. The grapes are 63% Sonoma and 37% Mendocino. The wine was made by Spirito Ballatore and the wine was en tirage for a minimum of 12 months.

* Chardonnay, 1995, made from 95% Mendocino County grapes and barrel-fermented in a combination of American and French oak. Residual sugar is 0.30%

* Sauvignon blanc, 1995, made from 70% Mendocino County grapes, 27% Sonoma County and 3% California. There is 9% Chardonnay in the blend. Residual sugar is 0.41%.

* Zinfandel, 1994, made from 66% Sonoma County, 29% Mendocino County and 5 % California grapes, with 75% Zinfandel, 17% Carignane and 4% Petite Sirah, aged in European oak casks. And if the varietal mix sounds like one of those wonderful slightly old-fashioned but very delicious California Zinfandels, you've got it just about right.

Zabaco. Odd name, yes, but legit. When I first heard it I thought it was a public relations stretch, but I checked it out in "A Noble Heritage," Jack W. Florence, Sr.'s book on the history of Dry Creek Valley, and sure enough, it was there. Well, Gallo changed the name a little. Here's what Florence had to say in his book:

"In 1843, at the age of 14, German Pina, who could neither read nor write, petitioned the King of Mexico for the lands known as Tzabaco. The track consisted of four square leagues (approximately 17,000 acres) taking in Geyserville from the Russian River across to northern Dry Creek Valley, then down the valley to just short of Lytton Springs Road."

Pretty good Zinfandel territory.

Current Zabaco releases include:

* Sauvignon blanc, 1995, 77% Sonoma County, it was aged in a combination of French and American oak barrels.

* Chardonnay, 1994, 84% Sonoma County grapes; the wine was barrel-fermented in French barrels.

* Zinfandel, 1994, made from 92% Sonoma County grapes; it's a classic Dry Creek Valley Zinfandel, which means very good, indeed.

* Cabernet Sauvignon, 1993, made from 90% Sonoma County grapes, including 75% from Gallo ranches.

Anapamu Cellars is another odd name. In the Chumash language (one of the Native American tribes living on the Central Coast of California when the Spanish arrived) it means "rising or ascending place." The Gallo marketing folks picked on that term to symbolize their new Central Coast line of varietals:

* Cabernet Sauvignon, 1994, is made from 76% Monterey County, grapes, 17% North Coast, 5% Californian and 2% other Central Coast counties. The variety makeup starts with 81% Cabernet Sauvignon but also includes smaller amounts of Carignane, Zinfandel and Petite Sirah. Beyond that, it tastes good.

* Chardonnay, 1995, is made from Central Coast grapes, barrel-fermented and aged sur lie for almost five months. It is typical of Central Coast Chardonnay.

There will be two wines from Napa released this fall under the Marcelina label (named for longtime Director of Winemaking Marcello Monticelli), a Chardonnay from the 1995 vintage and a 1993 Cabernet Sauvignon.

The Italian Line

Ecco Domani. Italian varietals are priced to sell at a suggested retail of $10 to $12 and work very well as wine by the glass pours for restaurants and wine bars. The wines are made from grapes grown in the region of Venezie:

* Pinot Grigio 1995 is a wine true to the region, with good acidity and a crisp finish.

* Merlot 1995 is a soft Merlot with attractive cherry fruit.

L.W.

RELATED ARTICLE: THE GALLO RANCHES

Laguna Ranch Vineyard is planted to 360 acres of vines, chiefly Chardonnay. It is in the Russian River Valley appellation.

Frei Ranch Vineyard is planted to 625 acres of vines, Cabernet Sauvignon, Chardonnay, Zinfandel, Merlot and Cabernet franc. It's in the Dry Creek Valley appellation.

Stefani Vineyard is planted to 200 acres of Chardonnay, Cabernet Sauvignon and Zinfandel. It's also in Dry Creek Valley appellation.

Chiotti Vineyard is planted to 55 acres of Chardonnay, Zinfandel and Cabernet Sauvignon in the Dry Creek Valley Vineyard.

Barrelli Creek Vineyard (formerly Asti Vineyard) is planted to 600 acres of Cabernet Sauvignon, Chardonnay, Sauvignon blanc, Merlot, Zinfandel, Sangiovese, Cabernet franc, and Petite Sirah in the Alexander Valley appellation.

Stony Point Vineyard near Cotati in the Sonoma Coast appellation and Twin Valley Vineyard in the Russian River Valley appellation are now being developed. They will total about 850 acres when planted.

RELATED ARTICLE: A TRIO OF WINNING NEW WINES

Three exceptional new wines on the Gallo label coming from the Sonoma estates include:

Gallo Sonoma Valdigue Barrelli Vineyard, 1994. This bottling of Valdigue (Napa Gamay) shows more depth and character than many Valdigues, with more concentrated fruit. (The Barrelli Vineyard was once known as the Asti Vineyard.)

Gallo Sonoma Barbera, Barrelli Vineyard, 1994. There's lively and vivid fruit in this wine, with a good acid balance.

Gallo Sonoma Sangiovese Barrelli Vineyard, 1994. A delicious wine, true to the varietal.

L.W.

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