E&J Gallo advertising & marketing assignments

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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 25m cases annually, with over 20m in the US alone. US retail sales are over $1bn, the only wine brand to achieve that level. Barefoot has also been extended to a wide range of different wine varieties and formats, including wine cand and boxes, pre-mixed spritzers and, from 2020, even hard seltzers. Other significant brands include Apothic, Liberty Creek and Dark Horse 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 - the group's #2 seller by volumes in the US at around 12m cases - Twin Valley, Peter Vella, Livingston Cellars and Boone's Farm. In early 2019, the group agreed to buy a sizeable collection of around 30 additional wines from Constellation Brands, including Clos du Bois, boxed wine Black Box, Wild Horse, Mark West and Ravenswood; and also New Zealand's Nobilo. 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 it overtook Absolut to become the #2 vodka by US volumes behind Smirnoff. Volumes hit 5.3m cases in 2019, with a retail value of $755m. It is partnered by long-established E&J Brandy (volumes of 4.7m cases in 2019, according to Impact, retail value of $610m) and canned cocktails range High Noon. 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. Ernest J Gallo, grandson of founder Ernest Gallo, succeeded his father Joseph as CEO in 2020. Several other family members also work in the business. Revenues for 2019 were around $4.8bn.

Capsule checked 23rd June 2020

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Recent stories from Adbrands Update:

Adbrands Daily Update 6th Jan 2021: After almost two years of wrangling, Constellation's sale of a collection of low-priced wines to E&J Gallo has finally received a green light after several brands were excluded from the deal. The price of the deal has reduced accordingly from $1.7bn to around $810m. Wines moving to Gallo include Ravenswood, Mark West, Manischewitz, Clos du Bois, Arbor Mist, Black Box, Estancia, Franciscan and Hogue. In a separate side-deal, Constellation is also selling New Zealand's Nobilo to Gallo for $130m. However, regulators objected to the transfer of Cook's California and J Roget sparkling wines, ordering them to be retained by Constellation for at least four years. They also blocked the transfer of Paul Masson brandy, which will be sold instead to Sazerac.

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 higher priced 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. A separate deal was agreed for the transfer of New Zealand's Nobilo wine. Staying at Constellation are Robert Mondavi, Prisoner Wines, Kim Crawford, Meiomi, SIMI, Schrader and Mount Veeder. [Updated: Regulators objected to the transfer of Constellation's Cook's California and J Roget sparkling wines, as well as Paul Masson brandy. The deal price was cit to $1.1bn with those brands excluded.]

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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