Years later, Paterno’s daughter Josephine married Anthony Terlato, whose own father opened a retail wine and spirits store on Chicago’s North side in the 1950s. Anthony Terlato’s career — and passion for wine — began at his father’s store, Leading Liquor Marts, one of Chicago’s first self-service stores. What set it apart was its selection of fine imported products, attracting well-to-do-professionals, doctors, professors and businessmen. Terlato noted the tastes of these affluent customers, and saw and emerging market for the world’s fine wines.

The ’60s and ’70s – A Focus on Quality and Distribution
Pacific’s transition to fine wine distribution the 1950s attracted the attention of many leading wine suppliers worldwide. Through the ’60s and ’70s, Pacific became known as the industry’s leading fine wine distributor, assembling a portfolio of best-in-class wine suppliers including Alexis Lichine, Frank Schoonmaker, most (if not all) of the French classified growths, Champagne Roederer, Beaulieu Vineyards, Robert Mondavi’s launch in 1967, Joseph Drouhin and Louis Latour.

Pacific experienced a period of dynamic expansion as it focused on high-quality wines and distribution, primarily in fine restaurants.  This approach was contrary to industry convention, but appreciating and leveraging the link between fine wine and fine dining became one of the core philosophies of the family. 

The success of Pacific marked the family’s first transition up the channel — from retailers to wholesalers. 

1964 – Paterno Imports
At the same time that Pacific was establishing itself as the premier wine distributor in the country, Paterno Imports was incorporated in 1964. Paterno was originally created to import wines as a means of consistent growth for Pacific. In the late ’60s, Paterno’s portfolio and the scope of its operation began to expand, allowing it to become a valued supplier to its national distributor network. By 1970, Paterno had secured distribution for its products in most of the United States.

The ’70s and ’80s at Paterno – Creating Categories
In the ’70s, Paterno continued to grow and was known as the pre-eminent supplier of quality Italian wines to the U.S. market. In the early ’70s, with the introduction of Corvo, Paterno created a category that did not exist in the U.S. market — that of Sicilian wines. Within four years, Corvo had become one of the best selling Italian wines in America.

Following the success of Corvo, Anthony Terlato recognized that the American consumer was looking for higher quality wines; at the time, many fine Italian wines were not available in the United States. In the late ’70s, Terlato scoured Italy in search of a new wine that could satisfy the growing appetite in America. In 1979 he found it, and under his direction, Paterno launched Santa Margherita Pinot Grigio in the U.S. market. At the time, Pinot Grigio was a relatively unknown varietal in this country; consequently, the launch of Santa Margherita did not just create a major brand, but an entirely new wine category. Today, Pinot Grigio is the fastest growing varietal, and Santa Margherita is the best-selling imported wine over $14.00 in U.S. history.

By 1984, the Wine & Spirits restaurant poll named Santa Margherita Pinot Grigio “The most requested Italian wine in U.S. restaurants,” and by 1988 it was named “the most requested imported wine in U.S. restaurants,” an honor the brand still holds today. 

Having successfully launched brands like Santa Margherita, Corvo, Gancia and Il Poggione, Paterno Imports became the most important supplier of high-quality Italian wines in America. Paterno’s success signaled the family’s second transition up the industry ladder – from wholesaler to importer. During this era both sons, Bill and John, joined their father in the family company. Bill joined the company in 1981 and served as the first brand manager for Santa Margherita. His brother, John, joined the company in 1986.

The ’90s At Paterno – Expansion
A new decade brought a new generation of family leadership in the organization. In 1994, Bill Terlato ascended to the role of President, and under his leadership, the company has become the nation’s leading marketer of luxury wine in the United States.

Building on the tradition of excellence his grandfathers and father established, Bill Terlato has expanded the Paterno’s luxury portfolio beyond fine Italian wines to include premium wines from France, Australia, New Zealand, South Africa, Spain, Argentina, Chile, Greece, Oregon and California.

With the addition of California brands including Rochioli, Markham, Cuvaison and Rutherford Hill, and European brands like M. Chapoutier and Boutari, the company expanded its portfolio of best-in-class, premium wines from around the world. It also became one of the largest suppliers of premium Napa Valley wine in the United States. Today, the company is represented by more than one out of every eight bottles of wine over $14 sold in America.

1996 – Winery Ownership
As President, Bill Terlato acted on the strategic decision to more into wine production. His family, over three generations, had entered and mastered every other aspect of the wine business — as retailer, importer, marketer and distributor. In 1996, with the purchase of Rutherford Hill Winery, the family had completed the circle and succeeded in becoming vertically integrated, operating top companies in every industry channel. Founded in 1976, Rutherford Hill pioneered the development of California Merlot, which remains its signature varietal.

Today, along with Rutherford Hill, TWG also owns Alderbrook Vineyards (Sonoma County); Chimney Rock Winery (Stags Leap District, Napa Valley); Terlato Family Vineyards (Napa and Sonoma); EPISODE (Napa Valley); Domaine Terlato & Chapoutier (Victoria, Australia); and holds majority interest in Sanford Winery (Santa Barbara County), and sole ownership of the iconic Sanford and Benedict Vineyard, the first vineyard in Santa Barbara to be planted to Pinot Noir. The company also holds interests in M. Chapoutier (Rhône Valley, France) and joint ventures in Australia, Italy, Spain and California.

2001 – Gaja
In 2001, after 20 years of correspondence and discussion between Angelo Gaja and the Terlato family, it was announced that Paterno had become the sole U.S. agent for the wines of Angelo Gaja. Of this association, Gaja said:  “As we enter a new phase in our evolution, Paterno’s experience in developing markets for leading winemakers from Italy and around the world will help us continue to grow while maintaining our absolute commitment to quality.”

2002 – Sale of Distributorships
In 2002, Bill Terlato led the strategic decision to sell its five Illinois liquor distributorships. This decision allowed the Terlatos to focus all of their resources on building Paterno, their international marketing organization, and investing in fine wine production around the world.

In this same year, Paterno Imports was renamed Paterno Wines International, and opened an international sales office.

2003 – 2006 A Legacy of Achievement
In 2003, Wine Enthusiast magazine named Anthony J. Terlato its Man of the Year, crediting him for “changing the way Americans drink.” In 2004, Terlato joined the likes of Julia Child, Robert Mondavi, Angelo Gaja and Piero Antonieri when he received Wine Spectator magazine’s Distinguished Service Award.  And in 2006, Terlato was honored with the Horatio Alger Award and inducted as lifetime member of the Horatio Alger Association, whose members include former Presidents Dwight Eisenhower and Ronald Reagan; former Secretaries of State Henry Kissinger and Colin Powell; former U.S. Senator Robert J. Dole and the Reverend Billy Graham.

As Terlato was recognized for his achievements, Paterno Wines International again strengthened its position as the leading marketer of luxury wine, earning more 90+ ratings from top industry publications than any wine company in the world.

The years 2004-2006 also brought the addition of new global brands to the Paterno portfolio, including: Italy: Baglio di Pianetto, Barone Ricasoli and Gagliole; California: Hanna and Terlato Family Vineyards; France: Champagne Bollinger, Domaine Chanson and Domaine Louis Moreau; Canada: Peller Estates Icewine; and Australia: Domaine Terlato & Chapoutier, Branson Coach House and Two Hands Wines. 

2007 – Terlato Wines International
In 2007, Bill and John Terlato announced the company’s name change from Paterno Wines International to Terlato Wines International. Just as Anthony Terlato had worked for decades to create a business that was a worthy tribute to his father-in-law, Anthony Paterno, the Terlato sons wanted to honor their father in the same way: a fitting tribute to Anthony Terlato’s success in every aspect of the wine industry — retailing, distribution, importing, marketing and the production of fine wines.

The name change to Terlato Wines International marked the first step in comprehensive rebranding initiative that will bolster the company’s leadership position and renew its commitment to industry innovation and excellence.   

Early in 2007, the Terlato luxury portfolio expanded with the addition of five acclaimed South African brands: Cirrus, Engelbrecht Els, Ernie Els, Guardian Peak and Rust en Vrede. 

Then, in the autumn of 2007, the Spanish wines of Bodegas Olvena joined the TWI portfolio. Olvena’s Somontano vineyards cover 210 hectares in the Pyrenees, near the French border. This famed region is known for the blending of international and indigenous varietals to make the finest wines in Spain.

2008 – Spirits, Winemaker’s Blends and Celebrities
The year 2008 has followed up 2007 as an active one — a testament to TWI’s strategic response to the rapidly growing luxury wine and spirits markets. In January, it announced the creation of a luxury spirits division by partnering with a super premium vodka producer, XELLENT Swiss Vodka, the first and only Swiss vodka. The spirits division’s name carries a certain distinction: Paterno — a tribute to the original name of the company founded by Anthony Paterno more than 60 years ago in Chicago. XELLENT, known for its distinctive quality and breakthrough packaging, illustrates how a venture in the spirits market dovetails naturally with Terlato’s wine strategies.

Creating new wine categories has been a hallmark of TWI’s initiatives, and this trailblazing continues with the unveiling of Seven Daughters Winemaker’s Blends from California. Represented by both a white and a red blend, each composed of seven select varietals, the Seven Daughters wines exemplify of the art of blending — a practice that continues to engage the increasing sophistication of today’s wine consumer.

Displaying wisdom about wine is perhaps as important to golfer Luke Donald as sinking a 30-foot putt. A star on the PGA circuit and a personal friend of Bill Terlato, Donald decided to pursue the production of wine with his own namesake – with Terlato’s blessing. The result has been the Luke Donald Collection, which includes a Chardonnay from Carneros, and a Claret from Napa Valley.

In these newest chapters, the Terlato family continues to apply the same commitment to quality that has driven all their endeavors. With interests in the world’s most esteemed winemaking regions, they are changing — for the better — the way the world drinks.

Terlato Wines International continues to garner more 90+ ratings than any wine company the world and with a global portfolio of more than 50 brands from world-class wine producers, TWI markets more than one out of eight bottles of wine over $14 sold in America.

Anthony J. Terlato
TWG and Paterno Wines International - Chairman

William A. Terlato
TWG and Paterno Wines International - President and CEO

John A. Terlato
TWG and Paterno Wines International - Executive Vice President, Chief Administrative Officer