Gallo is moving creative for most of its $30 million in wine advertising to FCB's San Francisco office from Dailey & Associates, Los Angeles.
Gallo said FCB will handle advertising for its varietals.
Dailey "will continue to be an important resource" and will be awarded some additional new projects business, Gallo said in a statement. "We value our long-term relationship with Dailey & Associates."
FCB is a Coors Brewing Co. agency and handles that marketer's Zima malt-based cooler. That precluded the agency from taking all of Gallo's business.
Dailey will keep responsibility for the Bartles & Jaymes cooler line and Kypler's, Gallo's Zima competitor now in test.
N W Ayer, New York, handles Gallo's media buying andDeutsch handles some Gallo champagne brands.
FCB will pick up creative responsibility for Gallo's wines just in time for the September test of a line of $7 to $10 Sonoma Gallo Premium wines. The line will be rolled out next year.
Gallo had planned to introduce the line with TV spots from Dailey, but FCB will now handle.
Creative for the Gallo account has been developed under Mike Koelker, FCB's executive creative director.
Gallo has a long history of tough agency relationships.
FCB has already been through the revolving door at Gallo, while Hal Riney & Partners, San Francisco, has entered, departed, re-entered and redeparted.
The latest change seems to indicate that Gallo will be spending much of its ad dollars on new products over the next two years. Both the Sonoma brand and Kypler's are expected to get heavy support at the expense of existing wine brands and Bartles & Jaymes.
Last year, FCB developed a campaign for Gallo, trying to lure young adults into the table wine market. The campaign, showing dramatic romantic vignettes with a mysterious twist, was tested but never rolled out.
The changes come as continuing price pressures on wines priced below $7 prompt several vintners to switch their ad efforts to higher-price products, increasing competition there.
Gallo's new Sonoma Gallo Premium wines will compete with wines from Kendall-Jackson and others in the growing superpremium segment.