E. & J. Gallo acquires RumChata

E. & J. Gallo Winery is welcoming a new addition to its spirits division.

The Modesto, Calif.-based company announced that it has signed an agreement to acquire Agave Loco, parent of the RumChata brand.

Created by Tom Maas, RumChata is best known for its rum-based horchata offerings, which are formulated with fresh dairy cream, rum and a sweet spice blend.

“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.

In addition, the acquisition is set to also include Midwest Custom Bottling, which produces RumChata, as well as the Tippy Cow and Holly Nog brands, the company said.

“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,” the vice president and general manager of Gallo’s spirits business, Britt West said. “Opportunities like this are rare in the spirits industry and we are excited to add RumChata to our expanding portfolio of noteworthy brands. We look forward to continuing to build brand awareness for RumChata, while expanding its availability both in the U.S. and Internationally.”