Agency founder Gabrielle Allen refused to comment on the split beyond citing a search for 'fresh opportunities', but it is believed the change in communications direction sparked by the appointment of Mairead Quinn as the firm's first UK PR manager was key to the decision (PRWeek, 18 January).
Carpe Diem's resignation follows the decision of Jackie Cooper PR to sever links with the company last month. That parting followed Gallo's decision to repitch its consumer PR, with the agency declining to take part in the process due to what it described as a 'disappointing' lack of PR activity during its period as retained shop.
Carpe Diem's six years with the firm saw the agency oversee the launch of the Sonoma Single Vineyards and Turning Leaf brands, following its appointment in 1996.
Quinn confirmed the parting with the agency, and added that decisions on the firm's handling of external PR agencies are likely to be clarified after a meeting with Gallo's US-based V-P of international marketing, Adam Burke, at the end of the week.
She refused to rule out the appointment of more than one agency or a further look at other agencies.
The family-owned company is the world's largest winemaker, operating from four major wineries in California.