Gallo has acquired Whiny Baby, the California-based business launched five years ago to make wine more approachable for Gen Z drinkers.
Announcing the acquisition on LinkedIn, Whiny Baby founder Jess Druey described the deal as "a dream come true".
In the post, which was shared by Gallo, Druey said she would stay on at the business while "consulting on emerging consumer innovation" at Gallo. Financial terms were not disclosed.
In an Instagram post, Gallo said: "Created by Jess Druey, Whiny Baby is all about making wine fun, fresh, and approachable. Together, we’re on a mission to welcome the next generation of wine lovers."
Just Drinks has approached Gallo and Whiny Baby for further comment.
Druey set up Whiny Baby in 2020 and launched the brand two years later. Fellow US wine business McBride Sisters Wine Company then formed a venture with Whiny Baby covering production and distribution.
In an Instagram post, McBride Sisters Wine Company founders Andréa and Robin McBride said they were "thrilled to share the next chapter" for Whiny Baby.
"As part of our joint venture, McBride Sisters Wine Company was proud to help incubate and support a young founder with a big vision for what wine could be," they said. "Congratulations to Jess – we can’t wait to watch you continue to grow and inspire the next generation of wine drinkers."
Amid the debates around the level of alcohol consumed by Gen Z, the wine industry has been wrestling with the image of its products in the minds of that cohort. "I think wine and wine language is quite intimidating for younger consumers. Asking for the wine list, being able to pronounce certain names, knowing your way around wine, it’s highly complex," Rollo Gabb, the MD South African wine group Journey’s End, told Just Drinks earlier this year.
The deal marks Gallo's first acquisition in wine for two years. In 2023, the company snapped up Napa Valley brand Massican and Napa-based Rombauer Vineyards.
More recently, Gallo has been either closing or selling off wine assets. In July, the privately owned group announced plans to close its Courtside Cellars winery in Saint Louis Obispo County in California.
Last year, the group sold another California site, the Wild Horse winery, to Continental Wine Collection.
A month later, Gallo also offloaded two wineries based in Washington state to local peer Ackley Brands.
The company's M&A activity has more recently been outside wine. Last year, Gallo made a “strategic investment” in Montana-based lager producer Montucky Cold Snacks for an undisclosed sum.
Gallo also snapped up rum brand Ron del Barrilito and Derrumbes mezcal in 2024 – for undisclosed amounts - which both now sit within the US group’s spirits division, Spirit of Gallo.
