Gallo Sales Company history

In 1957, the company introduced Thunderbird, a citrus-flavored fortified wine which reflected consumer tastes of the period.

In 1965 Julio Gallo established a Grower Relations staff of wine professionals who continue to work with growers, recommending new technologies and practices developed largely at Gallo’s research facility.

Among the most important developments of this period was a quality drive initiated by the company with California growers in 1967.

As a result of the increasing supply of true wine grapes, Gallo was able to discontinue use of the inferior Thompson seedless grape in 1972.

In 1976 the Federal Trade Commission charged Gallo with unfair competition, and the winery signed a consent agreement restricting its ability to control its wholesalers.

In September 1982, Gallo successfully filed a petition to have the order set aside, arguing that “dramatic changes in the wine industry,” specifically the entry of conglomerates such as Coca-Cola and Seagrams, had rendered the terms of the original order obsolete.

The Bartles and Jaymes product was introduced in 1985 and within a year had become market leader in a highly competitive and burgeoning segment.

In April 1986, Ernest and Julio filed suit against their younger brother Joseph, charging him with trademark infringement.

In late 1988, having dropped some of its original cork-finished varietals, Gallo introduced others, such as a successful new “blush” category of varietals.

In June 1989, a United States District Court judge settled the trademark infringement case in favor of the plaintiffs, and Joseph Gallo was given 30 days to stop using the Gallo name on his cheese.

By 1991, according to estimates by investment banking firm Hambrecht and Quist, Gallo was the largest producer of varietals in the United States, selling an estimated eight million cases that year.

Julio died in 1993 at the age of 83 from a broken neck he suffered when he overturned his jeep on a family ranch.

In 1995 Turning Leaf made its debut, while Gossamer Bay debuted the following year.

By the fall of 1996 Turning Leaf had become one of the top 12 varietal wines sold in supermarkets.

David died in March 1997 of a heart attack, leaving Joe Gallo fully in charge of sales.