Why a Popular Napa Winery's Sale to America's Largest Wine Company Is Making Waves

02 Sep, 2023

Why a Popular Napa Winery's Sale to America's Largest Wine Company Is Making Waves

Earlier this week, E. & J. Gallo, a wine industry giant, made a surprising move by acquiring Rombauer Vineyards, a renowned Chardonnay producer in the United States. In a subsequent bold move just two days later, Gallo has expanded its portfolio by purchasing Massican, a unique brand exclusively dedicated to white wines, originating from the Cabernet-dominated Napa Valley.

Founded by Dan Petroski, who earned the title of the San Francisco Chronicle’s Winemaker of the Year in 2017, Massican specializes in crafting crisp and vibrant Mediterranean-inspired wines. Notably, many of their offerings feature esoteric Italian grape varieties rarely found in California, such as Ribolla Gialla, Tocai Friulano, and Falanghina. This aligns with the evolving preferences of consumers who seek refreshing, high-acid, and lower-alcohol wines—a stark contrast to the rich, round, and buttery Chardonnay that Rombauer is famous for. Gallo's brand manager, John Irwin, highlighted that while Massican wines are unconventional for California, this acquisition allows the company to provide a stylistic counterpoint, furthering Gallo's mission to create a more inclusive identity for California wine.

Irwin emphasized that when consumers add a bottle of Massican Hyde Chardonnay to their shopping basket alongside a bottle of Rombauer Chardonnay, they will experience two distinctly different perspectives on Napa's Carneros region. This strategic move marks Gallo's third significant wine acquisition in recent months, following its purchase of Central Coast powerhouse Hahn Family Wines in June. While the purchase price remains undisclosed, the Massican acquisition includes the brand and the remaining 2022 inventory. Notably, Dan Petroski, the visionary behind Massican, will continue as the winemaker and figurehead of the brand for the foreseeable future, estimated to be at least 5-10 years.

Massican's journey began with Petroski's experiences living in Italy, and it swiftly garnered a devoted following among wine enthusiasts since its inception in 2009. The brand achieved instant success, with all three wines from Massican's debut vintage earning a place on the prestigious French Laundry's wine list. Right from the start, Dan Petroski envisioned Massican as more than a niche brand cherished by sommeliers. While many of his peers in Napa Valley pursued exclusivity, Petroski aimed for mainstream recognition, aspiring to become one of the most widely consumed white wines in America—a goal he openly acknowledged, even mentioning the possibility of selling Massican in 2021.

Petroski's rationale for this strategic shift was driven by his desire to enhance accessibility and affordability in a wine market that had witnessed record-breaking bottle prices in Napa. However, this decision to "sell out" has stirred controversy within the Napa winemaking community, particularly given Petroski's reputation as an outspoken advocate for addressing urgent climate change concerns. He has consistently pushed the boundaries of wine marketing, embracing innovative approaches such as launching an Instagram magazine, exploring NFTs, and introducing a white wine emoji—all aimed at engaging younger consumers, a demographic highly sought after by wineries. Moreover, Petroski has convened industry leaders for thought-provoking discussions on pertinent topics through traditional salon-style events.