The leading US wine group, E&J Gallo, has acquired the San Jose-based wine producer, Mirassou Vineyards, one of the oldest wineries in California. The purchase includes the brand name and stocks but no vineyards. The financial details of the deal were not disclosed.

Gallo said that the existing management, comprising the fifth and sixth generations of the Mirassou family, will remain at the company which was first established in Santa Clara in 1854. Among the Mirassou product range is a Cabernet Sauvignon, a Merlot, a Pinot Noir, a Petite Syrah, a Riesling and a Zinfandel. The company is also well known for its Monterey County Chardonnay.

The acquisition of Mirassou follows Gallo's purchase earlier this month of the Louis Martini winery in the Napa Valley. Both wineries are old, established companies of similar size. Martini sells between 130,000 to 150,000 cases a year, while Mirassou's sales are around 100,000 cases.

Gallo spokesperson Caroline Coleman-Bailey said she did not envisage further acquisitions in the immediate future.