Gallo focuses on mid-priced range of wines from California

02 April, 2010

Californian wines’ “single biggest opportunity” lies in growing its share of the £6-£8 price bracket, according to E&J Gallo.

The producer has said it will avoid positioning its brands in the entry-level price tier to boost the region’s value sales.

Speaking at last week’s Prowein exhibition, George Marsden, vice-president for EMEA, said: “Most of the volume for California is in the £4-£5 range. The price tier of £6-£8 is where California has a real opportunity.

“The key challenge is getting consumers to try Californian wines above £6. We are going to invest a lot of energy in that with our Turning Leaf and Redwood Creek brands.”?Both brands retail for around £6.99 in the off-trade, although Marsden admitted both ranges can drop to £4.99 when featured in supermarket promotions.

He added that pitching brands in the £6-£8 price tier benefits producers, retailers and the consumer. “For the retailer it increases value sales, the consumer wins because they get better value through continued investment and suppliers win by having a sustainable profit that enables them to re-invest behind the brand.”?Marsden also revealed plans to work more closely with the Wine Institute of California to boost California’s performance in the off-trade.

“We think it can do even more to promote California’s strongest brands and variety types,” he said. “We are in partnership with the California Institute to promote Californian rosé and popular premium whites in the £6-£8 price tier, which is the single biggest opportunity for Californian wines in general.”

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