Major winery plans to build and hire in Chester, but wants SC lawmakers’ help first
A California-based wine giant that bottles, cans and distributes across the world wants to build on the East Coast and has its sights set on rural Chester County, an investment the company told lawmakers this week would start with $400 million and nearly 500 hires.
But before it puts roots down in Fort Lawn, a once-thriving mill town, the company wants help from South Carolina lawmakers, who oftentimes have knocked heads on alcohol-related legislation and giving special favors to companies.
The help they want is a change to the state’s alcohol law that would allow Ernest & Julio Gallo Winery to build four satellite locations in the state in addition to its manufacturing facility in Chester County. The type of satellite locations aren’t currently allowed in state law, but if approved, Gallo said it would offer customers a chance to taste their product and buy it on location.
Senators said Tuesday there should be room for a compromise, but two years ago a similar debate between breweries and wholesale distributors went nowhere. The breweries wanted to, in part, open standalone taprooms and have the freedom to transport their own beer to the separate retail locations, which they cannot do under state law. Wholesalers argued the change in state law could hurt their business and give breweries an unfair advantage in the market.
Representatives for Gallo Winery told a Senate panel Tuesday the company is very close to finalizing its deal with the county to build their facility on more than 600 acres — two-and-a-half times larger than its California headquarters — in Fort Lawn.
Rob Donoho with Gallo said the company does not expect the initial $400 million investment to be the end of Gallo’s commitment, but instead envisions more, spread out over five phases that will include bottling, canning, warehousing, distribution and one day manufacturing its own cans on site.
“We do actively want to come to South Carolina,” Donoho said, but added, the legislation in front of the General Assembly this year — S. 619 — is the “last key obstacle” and will be “critical” toward the company’s plans.
Gov. Henry McMaster also has weighed in, asking lawmakers to pass the bill.
“I urge members of the General Assembly and interested parties to work together and come to a consensus. I look forward to signing this bill into law and welcoming Gallo to South Carolina,” the governor wrote.
The legislation would allow Gallo to build four small, satellite locations that would offer controlled tastings and sales off site of wine, beer and liquor, more of a marketing and educational expansion and not simply to generate profit, Donoho said.
The locations would be small in size, more upscale, similar to wine rooms in California, that offer the experience to taste the beer, wine and liquor products and speak to an expert before making a purchase, he said.
It would not be a mega-bar, he added.
“So this is a big, big project for the state,” Donoho said, crediting access to the state’s port, the state’s business-friendly environment and the S.C. Ready job training program as reasons it chose South Carolina and not other southeastern states.
State Sen. Mike Fanning, a Fairfield Democrat whose district includes parts of Chester, told The State a company of Gallo’s size would be a “game changer” for the Upstate town and South Carolina.
“This is a world player choosing to locate only its second (bottling and distribution center) in this teeny town,” Fanning said. “This is breathing life, not just in Fairfield, but breathing life in the heart of textile territory.”
State Sen. Dick Harpootlian, D-Richland, remained skeptical of the deal, however, questioning the state’s investment and whether Gallo should get preferential treatment from the Legislature as he questioned when the General Assembly signed off on tax breaks for the Carolina Panthers to relocate the team’s NFL headquarters to York County.
“No one else is allowed to have satellites,” said Harpootlian, who said he believed they could reach a consensus between lawmakers, Gallo, the wholesalers and the retailers, but he wouldn’t be pressured into quickly passing the bill. “This bill changes the alcohol landscape in the state.”
A co-sponsor of the proposal, Senate Minority Leader Brad Hutto told Harpootlian in a Tuesday hearing the Senate has delved into much more complicated problems in a week, putting pressure on the Richland Democrat to help the bill move fast.
“This is a relatively poor area of the state,” the Orangeburg Democrat said, adding the nearly 500 jobs are needed.
“(It) is a big deal.”
