Allied Grape Growers was formed in 1951 with some 230 members representing approximately 50,000 tons of grapes from the San Joaquin Valley. Allied was born because of the disastrously low grape prices of the late 1940's and the unstable market of the early 1950's. Growers who had experienced the devastating prices of the last three years of the 1940's were looking for more stable prices for their grapes.

Louis Petri, President of Petri Wine Company, was interested in acquiring a consistent source of grapes at prices less erratic than had been the case of the preceding years. A series of meetings took place between growers and Louis Petri in 1951 endeavoring to come up with a joint plan that would help to stabilize prices to the grower and vintner alike. Those meetings culminated in an agreement whereby the growers agreed to acquire an Escalon, CA plant owned by the Petri family and a Madera, CA plant that Louis Petri had acquired from the Arakelian family in 1949.

North Coast grape growers were not exempted from low grape prices. The Geyserville Growers, a small cooperative in Geyserville in Sonoma County and with crushing facilities in Ukiah in Mendocino County, were also experiencing serious problems in marketing their members' grapes. They sought to become a part of Allied. Negotiations were consummated whereby Allied acquired their facilities and they became a part of Allied in 1953. This was Allied's first venture into the North Coast area. In late 1953, Louis Petri bought Italian Swiss Colony from National Distillers. This acquisition included the Italian Swiss Colony Plant in Fresno, the Asti Plant in Sonoma County, the Shewan Jones Plant in Lodi and bottling facilities in Newark and Chicago.

In 1957 the Larkmead Growers, with a substantial quantity of unsold wine and a delivery station in Napa County, solicited to become a part of Allied. Their unsold wine was acquired and the Larkmead members became members of Allied. This was Allied's first entry into Napa County. The Community Winery, a cooperative in Lodi experiencing marketing problems and low grape prices, solicited membership and were accepted into membership in Allied in 1958 with Allied acquiring their facilities. The two facilities in Lodi, the Shewan Jones Plant and the Community Winery were merged into one with the Shewan Jones Plant being closed and sold.

By 1959, 260,000 tons per year were being processed by Allied Grape Growers. In the summer of 1959, an agreement was reached between United Vintners and Allied for the stock of United Vintners. While Allied was started in a period of adversity, it grew and prospered. The purchase of the stock of United Vintners did not stop Allied's growth. In 1961 the Cella Plant at Reedley was acquired with their facilities and labels. In 1964 the Inglenook Plant at Rutherford with facilities at Oakville was acquired along with that well-known premium label. This put Allied, through its marketing arm, United Vintners, into all phases of the wine business from the top premium wines to a complete line of popular priced wines at all levels.

As United Vintners' sales increased, so did the tonnage of grapes that was processed through Allied. With their successful track record, growers were now eager to become a part of Allied and there was a long waiting list to get into the Association. The 1960's saw continued growth through Allied and its marketing arm, United Vintners. It was also a period of transition in the wine industry from a Dessert Wine business to a Table Wine business. 1968 was the last year in the wine industry in which the sales of Dessert Wine exceeded the sales of Table Wine. During that period United Vintner, as well as the wine industry, was busy changing from Dessert Wine sales to Table Wine sales to keep pace with market demands. Sales of wine through United Vintners increased to a point where the amount of grapes processed yearly through Allied increased from 1,100 members and 260,000 tons in 1959 to 1,600 members delivering in excess of 410,000 tons annually in 1968.

In 1968, Heublein, Inc. approached the Allied Board of Directors to propose a possible merger. The culmination of the deal hinged on working out a long-term supply contract under which Allied would be the sole supplier of grapes for the enterprise. A committee of the Allied Board and Management went to work with attorneys to draw up such a contract that would protect the growers long term as well as assuring a continuous supply of grapes for the partnership. These meetings resulted in a 20-year supply contract, renewable in 20-year increments, for a total of 80 years, making Allied the base supplier of all grapes for the partnership. A deal was struck between the growers and Heublein whereby the growers were paid cash for 82% of their Capital Fund and Heublein acquired 82% interest in United Vintners with Allied retaining 18%.

Shortly after the merger, the St. Helena Cooperative in Napa County became a part of Allied and their members' grapes became a part of Allied's membership. It wasn't long after the Heublin/United Vintner Allied merger that problems began with sales and subsequent demand for grapes required under the supply contract. The relationship between Allied and Heublein began to sour.

By the mid 1970's Allied and Heublein found themselves in court litigating the very heart of the merger, the supply contract. It now became necessary to negotiate a new contract with Heublein, as well as negotiating to sell grapes to other vintners. At the same time, Allied negotiated to sell their 18% in United Vintners to Heublein.

In 1978, contracts were signed for the first time for Allied to deliver grapes to wineries other than those owned or part-owned by the Association. 1982 produced the first six million-ton grape crop and the first three million-ton crush in California. This large crush created severe problems in the industry. It became apparent to the Allied Board, because of the experiences of the previous crush, that it was essential for Allied to acquire some crushing facilities of their own. Negotiations began with United Vintners toward the purchase of the Escalon, Asti and Reedley wineries in addition to Colony and other labels. The name ISC Wines was used for the company formed. ISC Wines came into being with the 1983 harvest. Wine sales faltered and profits fell in direct proportion. The loss factor of ISC Wines further eroded the returns brought about by lower grape prices in the market place. By early 1986, with ISC Wines sales and returns faltering it became apparent to the Allied Board that drastic steps must be taken. In 1987 the Board authorized the release of Allied's interest in ISC Wines to Erly Industries.

Following this, the Allied Board voted to make Allied a marketing cooperative for the sole purpose of marketing their members' grapes to various outlets. The Board of Directors was reduced from 22 to 7 members representing the various grape growing regions, and new management was hired in 1987 to manage the day to day sales and business activities.

Allied's success since that time has been unquestionable. By operating only as a marketing cooperative without resource heavy processing facilities, Allied's financial exposure and required grower investment is limited. Allied has been able to meet or exceed grower expectations in returns year in and year out by having established relationships with well over 100 different buyers statewide. In addition, Allied is seen in the industry as a reputable and reliable source of market information and as a voice for growers in a world of fewer and larger buyers. Since morphing into the marketing association in 1987, Allied has nearly tripled in size, approaching the 300,000 ton mark, doing nearly $100,000,000 in annual grape sales. Allied has experienced many challenges during its lifetime, but the transition into a marketing coopertive has proven to be a wise decision that serves a great need in our industry. Strong leadership and cooperative attitudes will be the key to continuing a sixty-year tradition of growers uniting to remain viable wine industry participants.