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E & J. Gallo Strengthens Its Position as a Leading Spirits Company with Purchase of Rumchata

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EJ GalloMODESTO, Calif. (April 6, 2021) – E. & J. Gallo Winery (Gallo) announced today that its Spirits  Division has signed an agreement to acquire Agave Loco LLC, the owner of RumChata, a  leading cream liqueur brand. 

Inspired by the traditional milky rice drink from Mexico, founder and master blender Tom Maas  began experimenting in his kitchen to create his version of a rum-based horchata. Using fresh  dairy cream, rum and a proprietary sweet spice blend, RumChata was born in 2009. Since its  introduction, RumChata has steadily grown within the cream liqueur category in both retail and  on-premise.  

“First of all, I want to thank the distributors and retailers, as well as our employees, who  supported RumChata since its inception. Your backing of the brand meant the world to us and  will not be forgotten. As a small independent producer, we never imagined the success of  RumChata when we were just getting started back in 2009. We have taken the growth of the  brand as far as possible as a small supplier, and it was the right time to find a new brand  steward. 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,” said Maas.  

Known for its great taste and iconic packaging, RumChata has continued to innovate over the  past decade in order to adapt to changing consumer trends. In 2016, RumChata introduced  MiniChatas, 25ml cups for consumers wanting to add RumChata to their coffee. A year later in  2017, RumChata Cold Brew (formerly FrappaChata) was introduced and most recently  RumChata Limón has been added as a permanent addition to the RumChata family. RumChata  has also released a variety of successful seasonal offerings, including RumChata Peppermint  Bark for the holiday season. 

“We see tremendous potential with this acquisition to further innovate in the premium spirits  space with unique consumer propositions, while continuing to add value to our wholesaler and  customer partners,” said Vice President and General Manager of Gallo’s spirits business, Britt  West. “Opportunities like this are rare in the spirits industry and we are excited to add  RumChata to our expanding portfolio of noteworthy brands.” He added, “We look forward to  continuing to build brand awareness for RumChata, while expanding its availability both in the  U.S. and Internationally.” 

The acquisition includes Agave Loco LLC, which owns the RumChata brand, and Midwest  Custom Bottling LLC (MCB), which produces RumChata at its facility in Pewaukee, Wisconsin. The Tippy Cow and Holly Nog brands owned by MCB are also included in the transaction. The  sale is expected to close on April 16, 2021. Agave Loco and MCB were advised by Livingstone.  Terms of the agreement were not disclosed. 

About E. & J. Gallo Winery

E & J. Gallo Winery is a family-owned company and global wine and spirits industry leader. Since its  earliest days, the hallmark of E. & J. Gallo is their lasting commitment to quality, and consistently  providing alcoholic beverages for every occasion. From its first spirit brand, E&J Brandy, to its growing  portfolio of offerings such as New Amsterdam Vodkas and Gins, Germain-Robin Brandy, High Noon Sun  Sips Hard Seltzer, Pink Whitney, Camarena Tequila and its recent partnerships with luxury brands such as  The Dalmore Single Malt Scotch, Don Fulano Tequila, Diplomático Rum and Amaro Montenegro, Gallo  offers brands of the highest quality and authenticity with the purpose of serving enjoyment in the  moments that matter to consumers.

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