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E.J. Gallo Winery E. & J. Gallo Winery is a privately

E. & J. Gallo Winery is a privately owned company which produces wines and fortified wines across a broad spectrum of price ranges. The winery is considered the largest domestic producer of wines, although exact figures are difficult to arrive at since it is a privately held organization. The wine industry is a difficult one which has suffered a number of setbacks, including Prohibition and the Depression (although some wines were permitted to be sold for medicinal and religious purposes during Prohibition). Gallo has an image of being a mass-produced winery that markets to the everyday consumer without discriminating taste, and its success with Thunderbird, its lowest priced fortified wine, reinforces that image. The company has successfully introduced new products that have been well accepted by the market, including champagnes and wine coolers, and much of the company's success is due to its close integration with its suppliers and partners in the production and distribution of its products.

The problem facing Gallo today is the same problem that other makers of alcoholic products face: a declining demand for their products. The American consumer has become increasingly aware of the health problems associated with alcohol, and has cut back on the consumption of alcoholic beverages, including wine. This has resulted in new products being introduced, such as wine coolers, but the industry as a whole must devise strategies for overcoming the trend away from alcoholic consumption.

The company also faces an image problem with its Thunderbird product, which is inexpensive and sold largely in urban centers where it is popular with homeless and poor alcoholics. Gallo is perceived as encouraging alcoholism in this demographic segment because the wine is available in screw-top bottles that are packaged in pints and sold at low prices. Fortified wines are expected to be one of the few growth segments of the market over the next ...

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E.J. Gallo Winery E. & J. Gallo Winery is a privately. (1969, December 31). In LotsofEssays.com. Retrieved 05:35, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1709130.html