Gallo concentrates on key brands

19 March, 2010

Another major supplier has shrunk its UK wine range in a bid to stay competitive in a challenging market.

Gallo is to stop distributing a number of fringe lines, including Sycamore Canyon and Winemaker’s Seal, as part of its ongoing range rationalisation programme, which has seen the producer scale back on promotional activity and reduce the amount of SKUs in its portfolio to less than 100.

The move follows Constellation’s decision in October to cut 22 wines from its Premium Wine Estates portfolio to provide greater focus on wines in the £5-£7 category.

Gallo has identified Gallo Family Vineyards, Turning Leaf, Redwood Creek, Barefoot and Carlo Rossi as the key brands that will drive “sustainable, profitable growth throughout 2010”.

This year the company will focus “all resources” behind those five ranges, according to George Marsden, vice president for Europe, the Middle East and Africa.

“We feel we are in a much more sustainable place. We now have five core brands, we used to have over 20. We realise we cannot be everything to everyone,

so we have reduced our whole business,” he said.

“Our definition of value is quality for the price that you pay. We took measured price increases across our portfolio that put us at a disadvantage.”?Barefoot will be “the brand to watch in 2010”, according to Marsden, who predicted it would be “the number one global brand within five years”.

This year’s plans include sponsorship of 500 events across the UK, including the Secret Garden Party and Pride, and a Europe-wide sampling campaign targeting 60,000 consumers.

Gallo Family Vineyards will build on the continuing demand for rosé by promoting a new cocktail called Gallo Rosito, which mixes the brand’s White Grenache rosé with ginger ale and red fruits.

A Pinot Noir will also be added to the range.

The other three brands will be backed by “robust, strategic marketing plans and partnerships”, Marsden added.

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