E. & J. Gallo is continuing its acquisition streak with Bev, a Los Angeles-based canned wine and spritz brand.
The deal, announced last week, came two years after E. & J. Gallo Winery secured exclusive U.S. distribution rights for Bev, increasing the brand’s visibility nationally. Financial terms were not disclosed.
The announcement also follows Spirit of Gallo’s acquisition last month of ready-to-drink (RTD) canned cocktail Fishers Island Lemonade.
Bev was founded by Alix Peabody in 2017, after the founder used a retirement fund to bootstrap a rosé line, growing the company through local events and a guerilla marketing campaign. The zero sugar wine benefitted as one of the early canned wines on the market and from the pandemic’s boost to ready-to-drink cocktails, which kicked off the company’s growth rate of 200% per month beginning in March 2020.
Founders Fund, the San Francisco-based venture capital firm started by billionaire Peter Thiel, led Bev’s seed round of $7 million in 2019. Two years later, the company raised another $14 million from Vice Ventures founder Catharine Dockery, Canaan Venture Capital, and Justin Lubliner (artist Billie Eillish’s manager).
Peabody has built the brand on a mission “to inspire kinder, more inclusive fun in drinking culture at large.” The Bev portfolio under Gallo includes several California-sourced varietals hovering at 11% ABV, sparkling wines, and lower ABV spritzes, as well as a Pride-inspired SKU.
“I founded Bev out of a passion for changing not only the drinks in our hands, but the culture surrounding drinking,” Peabody said in a statement. “For us, breaking the glass is about empowering communities and inspiring people to celebrate themselves and own their fun. When I met Stephanie Gallo, it became immediately clear that Gallo’s values and commitment to women and diversity in the industry is exemplary of the exact change we aim to create. ”
Wrapped in bright and sparkling labels, Bev hasn’t been the only wine to position itself as an alternative to hard seltzers and other canned counterparts. Canned wines on the market grew from roughly 40 brands in 2016 to about 230 in 2020. Between 2017 and 2021, volume sales for canned wine in NIQ-tracked channels increased more than 3,800%. Other strategics have invested in the segment: Constellation Brands acquired a minority stake in Elizabeth Banks-backed Archer Roose last year.
Canned wine brands are now charged with the task of bringing younger drinkers into a category where drinkers over 60 are the only growth segments.
“As an industry, we are adapting and evolving to remain relevant to the next generation of alcohol beverage consumers,” said Stephanie Gallo, CMO of E. & J. Gallo Winery, in a statement. “I see the Bev portfolio as a welcome addition to Gallo’s product family that will allow us to continue to offer our consumers beverage options to celebrate any occasion.”
Peabody will continue her involvement in the vision, expansion and development of the brand, according to a press release.