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58 WINES&VINES June 2018 WINE BUSINESS INTERVIEW R oger Nabedian, a 32-year employee of E. & J. Gallo Winery, has made many headlines in recent years for orchestrating high-profile, high-priced acquisitions of vineyards, wineries and brands. As senior vice president and general manager of Gallo's Premium Wine Division, he is in charge of 40 brands produced at 28 wineries around the world. The divi- sion includes more than 7,500 acres of vines on 24,000 acres of land. Nabedian has helped secure and lead the integration of win- ery acquisitions in recent years, including Louis M. Martini, William Hill Estate and The Ranch Winery in Napa Valley, J Vineyards in Sonoma County and Colum- bia Winery in Washington State, to mention a few. A fur- ther move in the premium di- rection was the company's April 2017 acquisition of the 1,300-acre Stagecoach Vineyard property in Napa Valley, which included 600 acres under vine that produce mostly high-end Cabernet Sauvignon grapes. The real estate itself was worth at least $180 million, according to Napa County records. In 2016 Nabedian's division acquired Napa-based Orin Swift Cellars from founder Dave Phinney, who continues to direct winemaking. Orin Swift was then a 100,000-case brand. Phinney had created The Prisoner wine brand and later sold it to Huneeus Vintners, who subsequently sold it to Gallo competitor Constellation Brands for a reported $285 million. Q You are in charge of E & J Gallo's premium wine division. What is its mission? Nabedian: Gallo's simple mission has been to provide the best- quality wine at a value to con- sumers in a way that will have the broadest appeal, and within the economics of the wine trade. So whether it was Hearty Burgundy, or Boone's Farm or Martini Monte Rosso Cabernet, the mission has been pretty consistent. If I were a consultant, I would tell you to break the mar- ket down and ask, where are the profit dollars available? Back in the '90s or '80s this profit pool was being generated at more premium price points that Gallo wasn't participating in. It was apparent you have to play there and you have to play there successfully to sustain your business. We want to participate and excel in all segments of the wine market, no matter how you want to define them. A CONVERSATION WITH Roger Nabedian The Gallo executive discusses Orin Swift, Stagecoach and market economics By Jim Gordon E. & J. GALLO WINERY'S RECENT ACQUISITIONS Property When Type Location Acres Vine Acres Sierra Madre Vineyard May 2018 vineyard, brand Santa Barbara County 542 151 Rancho Real Vineyard May 2018 vineyard Santa Barbara County 436 211 Stagecoach Vineyard March 2017 vineyard, brand Napa County 1,300 600 Ranch Winery Dec. 2015 vineyard, winery Napa County 70 27 Talbott Vineyards Aug. 2015 vineyard, winery, brand Monterey County 565 550 Asti Winery & Souverain July 2015 vineyard, winery, brand Sonoma County 535 275 Orin Swift June 2016 brand, tasting room Napa County 0 0 Cypress & Palisades May 2015 vineyard Napa County 642 258 J Vineyards & Winery March 2015 vineyard, winery, brand Sonoma County 300 300 Total 4,390 2,372