Gallo grandchildren take on increasing responsibilities with vision, determination

Ernest and Julio Gallo used to gather their grandchildren around their dinner tables and talk about the wine business.

They would ask the young people what they thought of new brands, packaging and other ideas.

"At a very early age, it was as if our opinions mattered and we were making a contribution in our own way to the business," said Stephanie Gallo, a granddaughter of Ernest Gallo.

Today, this third generation plays a major role at E.&J. Gallo Winery, an industry giant that brothers Ernest and Julio launched in Modesto 75 years ago today.

G-3, as this group has been called, faces challenges as it looks to the future. They include global competition, a still developing U.S. wine market and a business environment not always friendly to family-owned companies.

But they have a vision for success - one that depends in part on many other families gathering around their own tables.

"People are so busy that they really look at wine as a way to connect," said Stephanie Gallo, director of marketing at the winery. "... It's a signal in our society now, with cell phones and BlackBerrys, that we just need to chill out and just reconnect with family, friends and loved ones."

She talked with The Bee earlier this month along with cousins John Gallo, who is the vice president in charge of Gallo Glass Co., and Greg Coleman, the vice president for grower relations.

Julio Gallo died in 1993; Ernest Gallo, last year. The company is headed now by Ernest's son, Joseph E. Gallo; Julio's son, Bob Gallo; and Julio's son-in-law, Jim Coleman. Ten members of the third generation and two in the fourth also are involved.

Greg Coleman, who oversees grape growing in the Central Valley, said his grandfather imparted family members both skills and values.

"With Julio, it was always the emphasis on quality, from the vineyards all the way through to the winemaking." he said. " ... And the other thing was building those relationships. In the area that I work in, I know that was very important to him and something that he worked hard at. I remember that, and we deal with that every day."

John Gallo, another grandson of Julio Gallo, agreed. "Grandpa was very respectful of people, the way he worked with employees, the way he built the relationships with the growers, the suppliers."

Julio Gallo mostly oversaw wine production, while his brother handled the marketing. This split in responsibilities has continued with several members of the third generation, Stephanie Gallo said.

She said her task as a marketer is to get consumers to feel that they are getting good wine for their money.

"Now that we're in an economic downturn, what we're seeing is that our value and economy wines are starting to grow again," she said. "It's really about continuing to produce great-quality wine at an affordable price, or delivering a value, whatever that price point may be. At the same time, you have consumers who are willing to pay more for what they perceive to be a better-quality product."