Gallo attributes growth to customers trading up

E&J Gallo has seen growth in its premium wine brands, on the back of consumers’ willingness to trade up, it has reported.

The Californian company said its premium portfolio, which includes Carnivor and Dark Horse, has been driving its success in 2018, helped by strong marketing campaigns and increased listings.

E&J Gallo channel director, Mark Stammers said the trend for premium wine had been growing for a while and over 20% of its still wine sales came from wine in the £7 and over price bracket.

“Sales show that slightly higher price points do not discourage customers because the increase in quality is seen as being worth the price,” he said. “Over the festive period, we expect to see premium wine sales increase further, as consumers look to treat themselves and their guests.”

Carnivor, its premium red Zinfandel brand that launched on the market in 2013 aimed primarily at young male wine drinkers, saw triple digit value growth of 172% in 2018. Volumes grew 162% on the back of new listings, including Tesco.

Its Dark Horse brand also saw strong double-digit growth, rising 81% in value, on volume up 82%, following new listing in Tesco and Morrison’s, and the launch of a rosé version in April. E&J Gallo said a quarter of the growth of the £8.50 wine, which comes in Cabernet Sauvignon, Merlot, Chardonnay and rosé, came from higher frequency of purchase (Kantar WorldPanel – MAT June 2018 vs YA).