Perpetual connection: E&J Gallo
E&J Gallo has established a long-lasting legacy in the industry, evolving from a single-brand company to one of the largest spirits distributors by volume in the US in 50 years.
Building a company with a lasting legacy requires visionary foresight, enabling it to withstand challenges and adapt to changing consumer interests. For brothers Ernest and Julio Gallo, 1975 marked a turning point for their wine company with the launch of E&J American Brandy.
This strategic decision marked the company’s official entry into the spirits industry, allowing it to diversify its business and capitalise on evolving consumer trends and preferences.
The brothers used grapes from their wineries situated on the outskirts of Yosemite National Park in California to encourage consumers to explore American brandy as an alternative to the luxury Cognacs from southwestern France.
“One of the biggest challenges the brand faced was educating trade and consumers that an American brandy could compete with what was considered traditional, European brands – particularly Cognac,” explains Britt West, chief commercial officer of Gallo Wine & Spirits.
“The team had to do a lot of work to overcome these perceptions and set itself apart in a competitive market.”
The launch marked the beginning of the company’s journey into spirits. Despite facing numerous challenges, E&J Brandy has grown over the past 50 years to become the bestselling American brandy in the multi-outlet retail channel, according to IRI data from March 2024.
West continues: “The values and vision that our founders started this company with are rooted in commitment to excellence and consumer satisfaction, and that continues to guide our approach today.
“This has enabled us to be successful industry leaders in the spirits category for 50 years and will continue to be our guiding principle for the next 50 years and beyond.”
What started as a single-brand company has evolved into a diverse premium portfolio that includes more than 30 brands, from gin, Tequila, rum and vodka to ready-to-drink (RTD) cocktails.
In addition to E&J Brandy, Spirit of Gallo introduced New Amsterdam Vodka to the market in 2011.
Following the launch, it quickly became the fastest brand in the US to sell one million cases. Another significant milestone was reached in 2015 when the company became the US importer of Whyte & Mackay’s portfolio, marking Gallo’s entry into the luxury spirits market.
With the launch of High Noon RTDs in 2019, Spirit of Gallo secured the coveted spot as the bestselling spirits brand by volume in the US, achieving continued year-over-year growth (IRI 2022-2024). The company has also cemented its position as the second- largest spirits supplier in the US by volume.
Extending the family
West reflects on the company’s approach to growing its portfolio: “Our focus has always been, and continues to be, meeting our consumers where they are with products that match what they’re looking for.
“With such a diverse portfolio, we’re uniquely positioned to do so, and we continue to innovate by analysing consumer trends and acting on them quickly. From versatile liqueurs and apéritifs to premium single pours, we offer a wide variety of offerings to suit every occasion and consumer.
“Beyond innovation, we are committed to connecting with consumers through partnerships with leading voices in sports, media, and entertainment, building meaningful connections and fostering cultural relevance.”
Spirit of Gallo is committed to expanding its portfolio internationally, including the introduction of LoFi Apéritifs, Stratusphere Gin, and Pink Whitney Vodka to the on-trade market in Mexico.
The company is also focused on maintaining the momentum for High Noon in Canada, and is encouraged by the positive reception of the brand in Ireland and the UK.
Partnership strategy
Gallo is also enhancing its luxury spirits portfolio by forging exciting new partnerships.
“We continue to see consumer interest in premium products and have established strategic partnerships with brands such as Komos Tequila, Don Fulano, Condesa Gin, Derrumbes Mezcal, and Ron del Barrilito to diversify our premium offerings. We see a great potential to grow these brands globally,” explains West.
After five decades, E&J Gallo shows no signs of slowing down. According to West, while it is important to highlight and celebrate the company’s journey over the past 50 years, Gallo has set its eyes on the next five decades.
“We’re also already looking ahead to the next 50 years and beyond – staying true to the entrepreneurial spirit of our founders,” he explains.
“While predicting the future is challenging, we promise to remain committed to aligning with the right brands, for the right consumers, on the right occasions.”
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