Bonnie Harvey and Michael Houlihan, the co-founders of Barefoot Wine, turned their limited knowledge of wine into a thriving brand. They discuss their disruptive journey, including their unconventional marketing strategies aimed at attracting beer drinkers. The duo shares stories of overcoming challenges such as debt and rejection from distributors. Their innovative branding targeted women consumers and helped establish a unique identity in the wine market. Ultimately, their hard work led to Barefoot becoming a household name, culminating in its acquisition by E & J Gallo.
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Quick takeaways
Bonnie Harvey and Michael Houlihan leveraged their consulting background to disrupt the wine industry with a casual, approachable branding strategy.
The founders of Barefoot Wine focused on engaging with retailers and building community recognition through grassroots marketing and fundraising events.
Barefoot Wine's rapid growth and eventual acquisition by E&J Gallo showcased the power of innovative marketing and strategic distribution partnerships.
Deep dives
The Beginnings of Barefoot Wine
Michael Houlihan and Bonnie Harvey began their journey in the wine industry with minimal knowledge and experience. They were consultants rather than wine insiders, which allowed them to approach the market with fresh ideas and a unique perspective. Recognizing that traditional wine marketing excluded a broader audience, they aimed to create a brand that appealed to casual drinkers, similar to beer marketing. Their vision was to produce a wine that was consistently tasty and approachable, setting the stage for what would become Barefoot Wine.
Innovative Marketing Strategies
From the outset, Barefoot Wine differentiated itself through clever marketing and an unconventional brand image. The founders decided to target beer drinkers and present wine as an enjoyable, casual beverage rather than a snobby or exclusive experience. They introduced a fun label featuring a footprint, which not only captured attention but also stated their mission to make wine more relatable. This strategy involved engaging retailers directly and utilizing eye-catching displays that evoked a carefree lifestyle.
Overcoming Initial Challenges
After bottling their first batch of wine, Houlihan and Harvey faced significant hurdles in getting distribution. Initial meetings with major retailers were discouraging, as many buyers were hesitant about the unorthodox branding and lack of advertising funds. They took the initiative to promote their product through grassroots efforts, offering wine for fundraising events, which helped build community recognition. This approach not only increased sales in targeted neighborhoods but also established a loyal customer base.
Growth and Strategic Partnerships
By the late 1980s, Barefoot Wine started gaining traction, partly due to strategic partnerships with retailers like Trader Joe's. The founders understood that maintaining product visibility was crucial, leading them to develop a network of 'wine cops' to ensure their product stayed stocked on shelves. As sales increased, they expanded to new markets and introduced additional wine varieties. Their growth was further accelerated when they successfully attracted the attention of major supermarket chains, elevating Barefoot's profile.
Acquisition and Legacy
After years of building the brand and reaching impressive sales numbers, Barefoot Wine became an attractive acquisition target for the world's largest wine producer, E&J Gallo. The acquisition allowed Gallo to leverage its vast distribution network to skyrocket Barefoot's sales from around 600,000 cases to over 4 million in just a year. Despite selling their company, Houlihan and Harvey expressed pride in their creation and the brand's ongoing success. Today, Barefoot Wine ranks among the top-selling wine brands globally, demonstrating the lasting impact of their innovative approach.
Bonnie Harvey and Michael Houlihan started Barefoot Wine with $300,000 in debt and almost no knowledge of wine. What they did understand was how to sell it—with a carefree name and label that evoked the beach, and a consistent flavor and low price point that attracted shoppers who normally rejected wine as being too snooty. But winning over that audience took extreme patience, and years of pavement-pounding by Michael. In 2005—twenty years after launch—Barefoot had become ubiquitous, and was acquired by E & J Gallo, one of the biggest wine brands in the world.
This episode was produced by J.C. Howard, with music by Ramtin Arablouei
Edited by Neva Grant, with research help from Olivia Rockeman.