Gallo Winery of Modesto is buying a rum brand inspired by a drink beloved in Mexico
E.&J. Gallo Winery announced Tuesday that it will acquire the RumChata brand of liqueurs.
The deal with Agave Loco LLC will give the Modesto company the small Wisconsin plant that makes RumChata and two other rum brands.
The plant employs about 30 people in Pewaukee, about 20 miles west of Milwaukee. It will be the first Midwestern production for Gallo, which has about 7,300 people in Modesto and other locations.
The price was not disclosed. The purchase is expected to close April 16.
Gallo has become the world’s largest wine producer since its founding in 1933. It entered the spirits business with brandy in 1977 and branched into other liquors starting in 2008.
RumChata was inspired by horchata, a milky rice drink popular in Mexico. Master blender Tom Maas founded the brand in 2009 after experimenting in his kitchen.
The liqueur is made with Caribbean rum, Wisconsin dairy cream and a secret blend of sweet spices. Maas later added versions with lemon and coffee flavors, along with Peppermint Bark for the holidays.
“I know the RumChata brand will thrive under Gallo’s guidance, and I am excited to watch the brand continue to grow and evolve in the future,” Maas said in a news release.
Gallo also will get the Tippy Cow brand of rum drinks, crafted to taste like ice cream cones and shakes. And the deal includes the Holly Nog line of eggnog-inspired drinks.
All of the rum brands are about 14% alcohol, similar to many wines. The plant is called Midwest Custom Bottling.
“We look forward to continuing to build brand awareness for RumChata, while expanding its availability both in the U.S. and internationally,” said Britt West, vice president and general manager of Gallo’s spirits business.
Gallo already distributed Diplomático Rum in the United States for a company in Venezuela. It also makes or distributes gin, vodka, tequila, scotch and brandy. All are much higher in alcohol than its new Wisconsin products.
Gallo makes much of its wine in the San Joaquin Valley but also has operations near the California coast, in the states of Washington and New York, and in a few other nations.
Its biggest growth spurt came in January with the $810 million purchase of part of Constellation Brands.
This story was originally published April 7, 2021 at 5:00 AM with the headline "Gallo Winery of Modesto is buying a rum brand inspired by a drink beloved in Mexico."
