Gallo left legacy for family, wine industry

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The death of Ernest Gallo on Tuesday marked the end of an era and the passing of an icon, not only in the general world of table wines but also in the California fine-wine industry.

Two local wine industry professionals 7 including one who worked for Gallo 7 said his impact on California wines was immense.

They say he opened the door to the hundreds of wineries that now fuel the state/s economy and set an example for family-run businesses that few have emulated.

Gallo died at his home in Modesto less than two weeks shy of his 98th birthday, surrounded by his family that has become an integral part of the E&J Gallo Winery.

He and his late brother, Julio, the sons of an Italian immigrant father, grew up working in the family vineyard near Modesto.

In 1933, as Prohibition was ending, the brothers borrowed ,5,900 and, using a wine recipe they found at the local library, started the E&J Gallo Winery.

They parlayed that into what, at one time, was the world/s largest winemaking empire and still stands at No. 2.

When he died, Ernest Gallo was listed by Forbes magazine as one of the 400 richest Americans, with a family estate valued at ,1.3 billion.

But some say his impact on the California wine industry can/t be estimated, despite his company/s reputation for producing low-cost table wines.

&#8220He did a huge amount to pave the way for the rest of the wine industry,C said James Ontiveros, head of sales and marketing for Bien Nacido Vineyards, noted for the high-quality wines its grapes produce.

&#8220Bien Nacido is one of the most respected vineyards in the world, and none of this would have been possible if not for the fact the Gallos created the wine industry in California,C he said.

Ontiveros, a native of Santa Maria, worked for Gallo in 2000 and 2001 on the company/s pinot noir and chardonnay ranches. He started out as a grape buyer and ended up managing the Gallo ranches in southern and western Sonoma County.

&#8220I was fortunate to have met him on several occasions and pleased to sit through a couple of meetings with him,C Ontiveros recalled.

&#8220I/m a huge fan of what they did,C he said of the Gallos. &#8220They put quality wines at an affordable price in front of people who otherwise might not buy an expensive wine. They gave them a product they could enjoy with consistency. I/m a huge supporter of their operation.C

Ontiveros said he believes Gallo was a &#8220great leader in the industry who lived a long, full and rewarding life.C

&#8220This is a bittersweet day,C he said. &#8220It/s sad that he/s gone, but at his age and the life he lived, he had a pretty amazing career.

&#8220The entire industry owes their family a debt of gratitude, in my opinion,C he added. &#8220We all hope their family fares OK in their time of loss.C

Alfredo Koch, the new coordinator of the viticulture and enology department at Allan Hancock College, agreed Gallo was a driving force behind California wines.

&#8220I think he had a tremendous impact on the industry in California,C Koch said. &#8220That/s mainly noticed in the Central Valley where so many producers sell their grapes to Gallo.

&#8220I think you see many people who are starting wineries and (in wine) sales today, and many of those people started with Gallo,C he added.

But Koch said Gallo/s legacy to his family may be one of his biggest contributions.

&#8220One of the things I think are really important and worthwhile to mention is that he built from scratch this huge company by working extremely hard when he was young,C Koch said.

&#8220Few family businesses are so successful for such a long time,C he continued. &#8220And he was able to organize the whole family to work with the company for a long period of years. I think that/s very remarkable.

&#8220It/s also very important that the whole family can continue with the business. The situation is different for each winery, but, for example, Robert Mondavi (winery) has changed hands … and is no longer in the family.C

Koch said Gallo also was instrumental in creating a demand for Gallo wines. While Julio made the wine, Ernest directed sales, marketing and distribution.

&#8220His was one of the first wineries to have organized their own distribution in the state and have their own sales force,C Koch explained. &#8220He was very good at marketing and selling.C

Gallo knew that having a consistent product would make people keep buying his wines, because they would always know what to expect.

Yet at the same time, he was working to create higher quality wines that would raise the image of Gallo.

&#8220I think lately 7 in the last 10 years 7 he was trying to change the impression of the company,C Koch said. &#8220They were doing things differently, and some of those things might seem contradictory.

&#8220For example, he was trying to have a system that controlled the quality by spectrometry 7 how the light is reflected in the juice can give an indication of the content of acids and phenols,C he explained.

&#8220They were trying to develop standards so the product would taste the same year after year. Of course, every year the grapes are different and the product is different,C Koch noted. &#8220But they were hiring chemistry people to see if they could do things the same year after year.

&#8220On the other hand, they were working on making a higher quality of wines at Gallo of Sonoma,C he said. &#8220And they/ve made some great quality, some very successful wines. So they were trying to change the image.C

Mike Hodgson can be reached at 739-2221 or mhodgson@santamariatimes.com.

March 11, 2007

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