Gallo en progression...

E&J Gallo has announced that it was the fastest growing wine producer in the UK in 2005, according to market research by AC Nielsen. The E&J Gallo Winery recorded 20.6 percent growth last year, with 4.44 million 9L cases sold across its portfolio of brands. This topped Constellation's 14.4 percent growth and Diageo's 15.5 percent growth over the same period.
2005's success was driven by both established and new brands. The E&J Gallo branded portfolio, of which the principal brands are Sierra Valley, Turning Leaf and Coastal Vineyards, saw 31 percent growth last year. Market leader, Sierra Valley, posted 24.7 percent growth to 3.23 million 9L cases making it the second largest wine brand in the UK after Blossom Hill, with 3.5 percent market share.
UK consumers have shown an increasing taste for blush wines, demonstrated by strong market growth to 5.6 million cases in 2005, up 1.4 million cases compared with 2004. E&J Gallo continues to lead blush category development with the Sierra Valley White Grenache and White Zinfandel wines occupying first and fourth place in the list of top blush SKU's of 2005, growing at 33.4 percent and 49.1 percent respectively.
Building on the success of the Gallo brand, and blush wines in particular, E&J Gallo recently launched a blush SKU under the Turning Leaf brand, which is expected to help drive category growth at a premium price level. Gallo wines now account for 24 percent of the blush category, establishing the United States as UK consumers' favorite blush-producing country.
In 2005, E&J Gallo also launched the JJ McWilliam's brand into the UK. Strong sales of JJ McWilliam's and McWilliam's Hanwood (almost 150,000 9L cases combined) underlined the success of E&J Gallo's first move into the Australian category and the swift establishment of the McWilliam's brand among wine drinkers.
Devinder Singh, vice president and general manager, E&J Gallo Winery Europe, said, "The successes of 2005 demonstrate the increasing breadth and strength of our portfolio. We expect continued strong growth in 2006 by focusing on meeting the needs of our customers and consumers, investing in core brands, like Sierra Valley and Turning Leaf, and expanding our portfolio further."