Precept Wine takes over Sheffield Cellars and Fairbanks dessert wine brands

US-based wine producer Precept Wine has acquired Sheffield Cellars and Fairbanks dessert wine portfolio from E&J Gallo Winery (Gallo).

The financial details of the deal remain undisclosed.

Precept Wine founder and CEO Andrew Browne said: “I am thrilled to add these versatile wines to Precept’s growing portfolio and expand our footprint in the burgeoning dessert wine category.

“Our sales and marketing teams, along with our wholesale partners, are looking forward to building on the upward momentum of these great brands and categories.”

The Sheffield Cellars portfolio includes Tawny Port, Cream Sherry, Very Dry Sherry and Marsala, while the Fairbanks portfolio features Port, Sherry, Cream Sherry, White Port and Cocktail Pale Dry Sherry.

Production of these wine brands is remaining in California.

Precept said that it intends to continue the production of these wines in the “time-honoured tradition” under the guidance of its winemaker Hal Landvoigt.

Gallo CEO Ernest J Gallo said: “We are glad to have found in Precept a buyer that will respect the history of the Sheffield Cellars and Fairbanks brands and will continue making these quality dessert wines for consumers to enjoy.”

Earlier this month, Gallo finalised the acquisition of more than 30 wine brands from Constellation Brands in a deal worth around $810m.

Under the agreement, Gallo paid nearly $560m in cash at closing. The deal consideration also includes the provision of up to $250m in earnout payments based on the fulfilment of brand performance targets over two years after closing.

The deal secured the approval of the Federal Trade Commission (FTC) on 23 December.

Under the FTC consent order, Gallo agreed to sell Fairbanks and Sheffield, to Precept Brands.