The move is part of a wider strategy that begun last year to survive in challenging market conditions. It included reducing the amount of SKUs in Gallo’s portfolio to less than 100, scaling back on promotional activity, and implementing targeted price rises that resulted in a drop in volume sales.
The family-owned producer also refocused its UK wine range by identifying Gallo Family Vineyards, Turning Leaf, Redwood Creek, Barefoot and Carlo Rossi as the key brands that will deliver future growth.
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 better and much more sustainable place. We now have five core brands, we used to have over 20. We realised we cannot be everything to everyone, we have reduced our whole business.
“Our definition of value is quality for the price that you pay – we decided to invest in quality. We took measured calculated price increases across our portfolio that put us at a disadvantage,” he said.
Barefoot will be “the brand to watch for in 2010”, according to Marsden, who predicted it will be “the number one global brand within five years time”. 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 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.