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E & J Gallo Winery

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Executive Summary

E&J Gallo Winery was founded by two brothers Ernest and Juilo Gallo in 1933, it is the largest wine producer in the world. E&J Gallo Winery has done a wonderful job in successfully marketing low-priced, fortified wine such as their well-known lemon-favored Thunderbird. A popular radio jingle helped send Thunderbird to the top in inner-city and low income neighborhoods. In 1946, Gallo winery planted more than 400 varieties in experimental vineyards, testing each variety in the different grape-growing regions of California for its ability to produce fine table wine. Thin-skinned varietals take at least four years for a vine to begin bearing and additional two years to develop typical varietal characteristics, therefore
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To adapt to the new trends in society they partnered with Martha Stewart to market a special edition to their premium wine. In 2010, E&J Gallo Winery experienced a hardship when a Los Angeles law firm filed a complaint in Los Angleles Superior Court against E&J Gallo and French company Sieur d’ Arques. The complaint alleged that the companies engaged in unfair competition, false advertising and fraud in the bottling, distribution and sale of Red Bicyclette line French wines represent as Pinot Noir. The case resulted in the complaint receiving an unspecified sum as restitution and damages for the fraudulently sold wine.

A. Industry
Wine industry is defined as a sector of the food industry producing grape wines, champagne, cognac, and fruit-berry wines. Competitors of E&J Gallo Winery include Constellation, Jackson Family Wines, and Treasures Wine Estate. Their biggest competitor is Constellation, the parent company of Canandaigua, a New-York based winery and producer of Richard’s Wild Irish Rose; they have produced 4.6 billion in 2007 sales including beer and spirits. Alternative products for wine are other alcoholic beverages including vodka, tequila and gin. Wine is not just targeted to one class or group of individuals, they target to anyone over 21 years of age whether that is the low-income, middle-class, or high-class. In recent
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