E&J Gallo (US)

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Selected E&J Gallo advertising

E&J Gallo is the world's biggest wine producer, handling an extensive collection of more than 100 brands, mostly produced in California. Annual production is around 86m cases. Although the main E&J Gallo brand family and its variants (including Family Vineyards, Turning Leaf and Signature) remain the flagship, the company has also developed a number of very successful supporting brands, either by acquisition or launch or through distribution partnerships. The most popular of these by far has been mid-priced Barefoot Cellars, acquired in 2005, and now the top-selling wine in the world by a sizeable margin. It is the only wine in the world to ship over 20m cases annually; US sales by value are almost double any other brand at around $670m in 2017. Other significant brands include Liberty Creek, Apothic and Dark Horse - all among the fastest-growing US wine brands in 2017 - as well as top-selling US prosecco La Marca, premium Louis M Martini, Orin Swift, MacMurray and William Hill and others; as well as a collection of low-end value brands including Carlo Rossi, Peter Vella, Livingston Cellars and Boone's Farm. In early 2019, the group bought a sizeable collection of around 30 additional wines from Constellation Brands, including Clos du Bois and boxed wine Black Box. The latter shipped 7.4m cases in 2018. The group also has a small but important presence in premium distilled spirits, now led by New Amsterdam vodka. Only launched in 2011, volumes topped 1m cases in its first full year, and have continued to rocket ever since. In 2016 alone, sales soared by more than a third to 5.1m cases, and it overtook Absolut to become the #2 vodka by US volumes behind Smirnoff. Volumes slipped back to 5.0m cases in 2017, with a retail value of $700m. It is partnered by long-established E&J Brandy (volumes of 4.6m cases in 2017, according to Impact, retail value of $585m). The company began handling US distribution of Whyte & Mackay's Scotch portfolio at the end of 2015, and also manages a number of other such imported spirits. Founded in 1933 by brothers Ernest and Julio Gallo, the business is still family owned and run. Joseph E Gallo, son of Ernest, is CEO; his son Ernest J Gallo was named as COO in 2018, and will take over the top job in 2020. Several other family members also work in the business. Revenues for 2017 were around $4.5bn.

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Who are the competitors of E&J Gallo? See Spirits & Wines index for other companies  

Capsule checked 4th July 2018

Recent stories from Adbrands Update:

Adbrands Daily Update 4th Apr 2019: Confirming several weeks of rumour and speculation, Constellation Brands announced the sale of around half its wine portfolio by volume to E&J Gallo for $1.7bn. In a continuing shift away from its heritage as a cheap wine producer, Constellation wants to focus on beer, spirits and a smaller wine selection concentrated on brands that lead their individual segments. Labels moving to Gallo include high volume Black Box, Wild Horse, Mark West and Ravenswood, as well as high end Clos du Bois. A full list has yet to be published. Staying at Constellation are Robert Mondavi, Prisoner Wines, Kim Crawford, Meiomi, SIMI, Schrader and Mount Veeder.

Adbrands Weekly Update 5th Jun 2017: Ads of the Week "Pour Out Your Soul". Alcoholic spirits must be among the hardest brands to develop campaigns for, not least because there is so much you're not allowed to say for fear of seeming to promote drunkenness. So agencies tend to fall back on a few well-worn tropes: the moody outsider, the mates all-together, the party people... To their considerable credit, agency David & Goliath has found a new path (even if it draws on a few of those afore-mentioned concepts) for blockbuster US vodka brand New Amsterdam, now the local #2 ahead of Absolut. This lovely spot is likely to keep the brand in the limelight this summer. 

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