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Gallo grows by 23%

Published:  23 July, 2008

California producer E&J Gallo had the fastest-growing wine sales of any company in the UK last year, achieving 23.9% growth.

The company sold more than 5.5 million cases, which represents a 4.9% share of the UK wine market, according to AC Nielsen data (MAT to week ending 31 December).

The company says the growth has been driven by the launch of the Gallo Family Vineyards brand. It sold more than 4.5 million cases in 2006 and includes the Sierra Valley, Turning Leaf and Sycamore Canyon labels.

Sales of Sierra Valley White Grenache grew by 24% and White Zinfandel by 40%. The two wines take first and third position respectively in the UK ros market.

Gallo's Australian brand McWilliam's recorded 76% growth in the past year, while Chilean brand Via Chilcaya, which was launched in the UK in March, reached 2.2 million in its first nine months of trading.

The company has now appointed Mark Tinsley as UK off-trade director to develop the business further. He said: Last year, we saw tremendous growth following the launch of the Gallo Family Vineyards brand. Consumers are increasingly trading up to our Turning Leaf brand, which is now California's best-selling wine brand over 5 in the UK.'

Gallo's on-trade sales have not reflected its off-trade growth, and Roger Boucher has been given responsibility for European on-trade. His focus in the UK will be on the pub and independent sector, as well as developing the company's fine wine business.

He said: The smoking ban in pubs later this year will be an opportunity to grow sales as pubs look to grow their wine offering to reflect a greater emphasis on food.'