Napa Valley Co-op will make wine for Whitbread.

Napa Valley Cooperative, which makes wine under a variety of labels, including Gallo, has signed a letter of intent to do the same for Whitbread North America Inc. The agreement calls for the two to form a joint venture to produce and market premium red and white vintage table wine aimed at restaurant sales, starting next summer. Earlier, Whitbread bought a 1,100-acre wine estate in the Atlas Peak area of Napa Valley--a $30-million investment in the so-called super-premium end of the California wine market.