SAN FRANCISCO – Three agencies here are hoping to sip the fruit of Franzia wine – an account that could bill $5-10 million.
Unfortunately, the review so far is proceeding a little like a slow aging process.
The shops, which include Young & Rubicam, Hoffman/Lewis and Ketchum Advertising, have had several meetings with the client, The Wine Group in S.F. So far, though, they’ve been given no indication of what the next step may be or when a decision may be made. ‘This is one loose review,’ a source said.
Until now, advertising and promotion for Franzia has been handled in-house with freelancers. But Franzia, which holds a 5% share of the table wine business, is about to come face to face with none other than E&J Gallo Winery, and that’s likely to drive a considerable advertising budget.
Franzia, which last year sold 6.6 million cases of wine, up about 30% from 1991, according to the Impact 1993 Annual Wine Study, has managed to buck the downward trend in the wine industry largely based on its so-called ‘box’ wines, a category it has dominated. Next month Gallo is expected to enter that business.
Don Dorward of Oakland, Calif., consultancy Dorward & Associates, which is handling the review, said the company’s growth led to the decision to launch a review. Others pointed out that Gallo could jeopardize Franzia’s until-now cushy position in the category. ‘There’s a lot of money to be made or lost, so they’ll do what they have to do,’ said one source.
Copyright Adweek L.P. (1993)
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