Black Box: Award-Winning Boxed Wine Continues to Evolve Under GALLO

10/06/2024 Adrienne Daniels Discusses Black Box Wines' Strategic Innovation and Market Expansion Under GALLO

Decades ago Black Box Wines pioneered the category, revolutionizing with the concept that premium wine could come in alternative packaging. Editor Charlie Leary interviews GALLO’s senior director of marketing, Adrienne Daniels, about the brand’s strategy and future.

Black Box Wines helped pioneer the concept of premium boxed wine for the US market. When, in 2021, E & J Gallo acquired wine brands such as Arbor Mist, Clos du Bois, Estancia, Franciscan, Hogue, Manischewitz, Mark West, Ravenswood, Taylor, Vendange, and Wild Horse from Constellation Brands, they also bought Black Box. 

Adrienne Daniels, Senior Director Of Marketing at what is now called GALLO was kind enough to answer a few questions from editor Charlie Leary about the brand, which continues to innovate with product categories and packaging. 

After working for a decade at General Mills, Adrienne moved to Gallo as Marketing Director in 2013. She became Senior Director of Marketing in 2018. She earned an MBA from Stanford University after receiving a BA from the University of Pennsylvania. 

Black Box’s Savvy Man

Some may remember that Daniels and her team hired actor Adam Scott for a 2022 Black Box advertising campaign: the Savvy Man. Using Scott in Black Box Wines' marketing was strategic, perfectly aligning with the brand’s ethos of combining premium quality with a touch of humor and approachability. Scott, known for his sophisticated yet relatable persona, embodied the brand’s values, making him an ideal ambassador. His ability to project an elevated aesthetic while maintaining a dry wit mirrors Black Box’s positioning as a premium yet unpretentious choice. By associating with a well-regarded figure, the brand tapped into his fan base, attracting a demographic that appreciates both quality and humor. Quality is reflected in the 2021 Black Box Cabernet Sauvignon, which won 95 points at the 2023 Sommeliers Choice Awards for its bright and clean dark red fruit flavors and soft tannins. 

Moreover, Scott's comedic background helped humanize Black Box Wines, making the idea of premium boxed wine more accessible and less intimidating. This approach effectively dissolves barriers and encourages trial among consumers who might traditionally prefer bottled wine. Scott’s modern appeal keeps Black Box current and trendy, resonating with contemporary consumer preferences. His popularity and social media presence extended the campaign’s reach, generating buzz and attracting a broader audience. 

The Interview Regarding Black Box

Image: Adrienne Daniels; Source: LinkedIn 

Charlie Leary: Black Box was a pioneer among boxed wine brands. Please briefly describe the history of the brand and how it innovated within the category. 

Adrienne Daniels: In 2003, Black Box Wines redefined the wine category by becoming the first U.S. brand to offer premium, appellation-specific boxed wines. Through its launch, Black Box introduced the world to the benefits of the premium three-liter box format: the ability to store four bottles of premium wine for up to six weeks at 50% less than the cost of comparable bottles*. Since then, Black Box has succeeded as a category leader in one of the most dynamic, growing wine segments. Additionally, Black Box is the most awarded wine in the Premium Box category, with more than 100 gold medals and 47 Best Buy awards from Wine Enthusiast and counting.  

*© Circana, Total US MULO, L52 weeks ending 5-19-24, Black Box Wines 3L and Commercial Premium 750mL Wines, Price per 750mL  

Charlie Leary: Black Box was acquired from Constellation in early 2021. How does this brand, and boxed wine in general, fit within Gallo's overall marketing strategy? Which market segment(s) does it attract? 

Adrienne Daniels: The acquisition of Black Box was part of a strategic investment of multiple brands that represented GALLO’s long-term commitment to the wine industry and purpose to serve joy in moments that matter.  In the past year, the Premium Box category has contributed the most volume growth out of Total Wine Price Segments, and it is growing the fastest out of the top five biggest price segments in Total Wine1. Black Box’s offerings allow GALLO to continue its efforts to democratize wine through various taste and size offerings, which appeal to existing and new-to-wine consumers. 

1 Circana, Total US MULO, L52 weeks ending 5-19-24, Total Wine by Price Segment, Volume Sales Change vs YA, Dollar, and Volume Sales % Chg vs YA 

Charlie Leary: Black Box appears to have a robust direct-to-consumer sales program. How important are DTC sales for Black Box? 

Adrienne Daniels: Having the ability to reach our consumers directly through the Black Box website is an advantage that Black Box has over some of its competitors.  

Charlie Leary: All the way back in 2003, Black Box's website celebrated awards it had won at the San Francisco Wine Competition. Today, Black Box prominently displays awards from Wine Enthusiast on some product packaging. How important are critics' scores, recommendations, and wine competition awards to marketing a product like Black Box? 

Adrienne Daniels: After winning over 100 gold medals and counting, Black Box continues to highlight various scores and accolades directly on our packaging. By doing so, we reassure the consumer they can expect a premium quality product.  

Charlie Leary: Gallo appears to have introduced a reward points program for consumers who purchase Black Box wines. Has this performed well? Does it encourage customer loyalty? 

Adrienne Daniels: Black Box was one of the first wine brands to launch a loyalty program in 2017. Through today’s program, members have access to special offers and can earn points for Black Box Wine purchases and through online engagement to redeem for various items. The program encourages customer loyalty and continues to perform well.  

Charlie Leary: Boxed wine certainly raises the issue of alternative wine packaging and also eco-friendliness. The Porto Protocol says, "Wine packaging contributes most heavily to the carbon footprint of wine, and single-use glass, which accounts for 85% of wine packaging, generates the highest level of emissions relative to other wine packaging types. The packaging format with the lowest level of carbon emissions is bag-in-box or box wine. Its market share in the United States is less than 10%." What is Gallo's viewpoint on this issue? Might we see other Gallo brands using box packaging in the near future? How important is consumer education in this regard? 

Adrienne Daniels: Black Box is America’s first premium and one of the best-selling 3-liter box wines. In the last 52 weeks, 500ml Tetras have contributed the most dollar and volume growth to Total Wine1. Within this fast-growing category, Black Box 500ml is gaining at a +6.1% faster rate than the 500 ml Tetra category2. We are excited to be positioned in this space, as the Tetra format signals an opportunity for Black Box to introduce new varietals and is a strategic tool for us to bring in new and LDA younger consumers to not only the brand but also the overall wine category. 

Across the GALLO organization, 85% of primary packaging will be 100% recyclable by 2030 to increase circularity and contribute to a Net Zero carbon economy. We are also targeting an additional 10% reduction in total package weight (e.g., lowering raw material uses and reducing transportation-related emissions). Additionally, every bottle of Gallo Glass is comprised of the highest recycled content achievable, which enables us to make progress toward our anticipated diversion of nearly 200,000 tons of glass from landfills annually, accounting for more than 30% of all recycled glass in California. 

1 Circana, Total US MULO, L52 weeks ending 5-19-24, Total Wine by Price Segment, Volume Sales Change vs YA, Dollar, and Volume Sales % Chg vs YA

2 Circana, Total US MULO + Conv, L52W Ending 5-19-24, Black Box 500ml and Total Wine 500ml Tetras, Dollar Sales % Chg vs YA

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Charlie Leary: As Black Box Wines continues to innovate under Gallo's stewardship, the brand evidences the growing acceptance and success of premium boxed wines in the U.S. market. Adrienne Daniels' insights reveal a dedicated effort to not only maintain but also expand Black Box's market presence through strategic acquisitions, wine competition awards, consumer loyalty programs, and eco-friendly packaging initiatives. With a strong emphasis on quality, accessibility, and sustainability, Black Box Wines is poised to take charge of redefining wine consumption for a new generation. This forms part of GALLO’s work to democratize wine enjoyment, a charge led by the Vice President of Marketing, Stephanie Gallo. You can read Charlie’s intriguing interview with Stephanie Gallo here

Header Image Source: Black Box Wines

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