Rombauer Carneros Chardonnay Bottle Glass

America's Best-Selling "Luxury" Chardonnay Eyes Global Expansion Under New Ownership

Despite selling out annually in its domestic market, America's best-selling "luxury" Chardonnay, produced by Rombauer Vineyards, is now poised to expand its global presence under new ownership.

Acquired by E&J Gallo in August last year, Rombauer Vineyards has joined the "luxury portfolio" of the world's largest wine producer, which aims to transform this recent acquisition into a global fine wine brand, spearheaded by Rombauer’s esteemed Carneros Chardonnay.

Speaking at ProWein on Sunday, March 10, Edouard Baijot MW, director of Gallo’s luxury division, expressed confidence in Rombauer’s potential, stating, "Rombauer’s Chardonnay could become the number one selling SKU in our luxury portfolio within the next 2-3 years. We are investing heavily behind the brand… we think it has great potential." The Chardonnay, featured at ProWein this year, has started to expand its distribution into European markets such as Switzerland, the Nordics, and the UK, where it already has a small presence.

Bob Knebel, president and CEO of Rombauer Vineyards, explained the strategy behind this expansion. While 99% of the Californian winery’s 300,000-case production is currently sold in the US, this is set to change as the brand seeks to build its reputation internationally. "The Rombauer family wasn’t looking to grow exports because they couldn’t satisfy the domestic market," said Knebel. However, both he and Gallo believe that the brand deserves global recognition, noting the latent demand from international wine enthusiasts who visit Napa and inquire about obtaining Rombauer wines in their home countries.

To address this growing demand, Rombauer plans to increase production, with director of viticulture and winemaking Richard Allen mentioning, "We do have the ability to increase production, but we have to find high-quality fruit, and we have our eyes fixed on a few properties." Despite current allocation limits, Knebel stated that Rombauer is willing to limit domestic growth to develop export markets.

Describing Rombauer as "attainable luxury at scale," Knebel highlighted that around two-thirds of the winery’s production is Carneros Chardonnay, which sells for just over USD 40 in the US. With at least 200,000 cases of this high-quality wine made annually, Knebel characterized it as "a cult wine made by hand at scale."

Gallo’s Luxury Portfolio includes brands like Louis M Martini, Orin Swift, L’Usine, Pahlmeyer, Jayson by Pahlmeyer, Rombauer, Talbott Vineyards, The Language of Yes, Denner, Massican, and Mount Peak. Baijot identified Louis M Martini, Orin Swift, and Rombauer as the "big three focus brands," defining luxury at Gallo as anything retailing for more than USD 40 a bottle in the US. He emphasized Gallo's commitment to showcasing California’s diversity to global customers while maintaining a focus on the state rather than adding products from other US regions.

Founded in 1980 by Koerner and Joan Rombauer, Rombauer Vineyards includes three winery and production facilities, two tasting rooms, and over 280 hectares of vineyards in Carneros, Atlas Peak, St. Helena, Calistoga, Sonoma Valley, and the Sierra Foothills. Knebel noted that while the founders are no longer alive, the second generation held board-level positions until the winery was sold. He praised E&J Gallo as one of the few companies capable of affording Rombauer and understanding its brand and culture.

The Rombauer Carneros Chardonnay, known for its creamy texture and flavors of ripe yellow stone fruit, juicy citrus, toast, and buttered popcorn, exemplifies the style of white wine that made California famous for Chardonnay. Despite the rise of skinnier, more acidic Chardonnays in recent years, Allen asserted, "bold, rich, ripe Chardonnay never went out of fashion in California."

 

Source: The Drinks Business

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