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Premium wines push strong performance from E&J Gallo

Published:  06 December, 2018

E&J Gallo has reported a “successful” 2018 thanks to a strong performance by wines from its premium portfolio.

It says its Carnivor and Dark Horse brands delivered “significant growth” over the past 12 months.

Sales of Carnivor, which retails for £10, were up 162% and and value growth was up 172%. Carnivor also had a 68% repeat purchase rate. It’s currently ranked the number three Premium Red Zinfandel and the number six Premium Cabernet Sauvignon by Nielsen.

Meanwhile Dark Horse, which retails for £8.50 and is ranked the number 8 premium wine brand by Nielsen, saw an 82% rise in sales and an 81% rise in value. E&J Gallo said the this was driven by its Cabernet Sauvignon, Merlot and Chardonnay varietals, as well as the Dark Horse Rosé it launched in April.

It said over a quarter of Dark Horse’s growth comes from higher frequency of purchase, which is considers a reflection of customer satisfaction.

“We have been seeing a trend towards premium wines for some time now, with 20% of still wine sales coming from wines priced £7 and up,” said E&J Gallo channel director Mark Stammers.

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

E&J Gallo also said sales of Carnivor were bolstered by an exclusive promotional partnership with Sainsbury’s for Nectar card holders. The winemaker also set up the Dark Horse brand with media partnerships with BBC Good Food, Olive, delicious and Foodism, as well as running experiential marketing activity at events including the Affordable Art Fair, Pub in the Park and The Telegraph Legend Series.