Gallo Sees Further Upside For Sparkling Wine Leader La Marca

The largest sparkling wine brand by volume in the U.S. market, Gallo’s La Marca Prosecco continues to build on its massive base. Last year, the Italian sparkler grew an estimated 7% to 3.22 million cases in the U.S., according to Impact Databank, capping a run that’s seen it add more than 800,000 cases to its total over the past three years, averaging annual volume growth of nearly 11%.

Amy Lund, vice president of integrated marketing at Gallo, tells SND that La Marca continues to benefit from consumers seeking out sparkling wines for everyday consumption, not only seasonally and for special occasions. “In 2023, we were the #2 total wine SKU for new dollar growth in the category for retail, led by volume outside the holidays,” she notes. “More consumers continue to use La Marca to mark every day moments of celebration and in cocktails at home.”

In addition to leading the sparkling market, La Marca is also among the top four imported wine labels in the U.S. overall, with a portfolio including its core bottling as well as a Rosé offering and a higher priced Luminore DOCG expression. La Marca averages around $16 a bottle in retail channels. The on-premise market continues to present growth opportunities for the brand. “We’ll continue to grow our footprint and by-the-glass placements in the on-premise,” says Lund. “Operators are looking for sparkling wines by-the-glass under $20, and La Marca consistently overdelivers on quality at this price point.”

Gallo also sees an opening for La Marca to participate in cocktail occasions, incorporating the brand into Spritz drinks. “With the consumer shift in demand toward spirits and cocktails, and with the rise of the Spritz, we’ve been able to take a category leadership position in sparkling cocktails,” Lund says.

Looking ahead, Gallo is expecting La Marca to continue to show “strong growth in retail driven by new consumers coming into the brand and our current consumers buying us for more occasions,” she adds. While La Marca is already among the best-known wine brands in the U.S., there remains white space to exploit moving forward, the company believes.

“La Marca’s total category penetration is just 1.2% for total alc bev drinkers, so we have a ton of opportunity to introduce the brand to new consumers,” says Lund. “A third of our consumers are under 35, so there is a tremendous amount of upside in recruiting younger consumers.”—Daniel Marsteller

Tagged : E.&J. Gallo, La Marca

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