Gallo Wines

1067 WordsMay 10, 20115 Pages
How important is the dessert wine segment to the industry? to E. & J. Gallo Winery? How do these products fit with Gallo's stated position on the quality of its products? Do brands like Thunderbird and Night Train have any redeeming features as a product, even if they are in demand by a segment of the population? Dessert wines are very important since it makes up a large portion of the wine industry. Before Gallo upgraded their image, they had more of a brownbag jug wine image through products like Thunderbird and Night Train wines. These products for Gallo Winery do very well for the company. Consumers remain loyal to the brands, especially those that cannot afford other brands. The Gallo Company associates itself only with the…show more content…
Yet they continue to produce it because it is very profitable. However they feel it is right to produce dessert wines because, as the result of their study, if they stopped, that segmented population that purchases the dessert wines would just go and drink something else. However, “by 1989, in the face of public concern over alcoholism and internal family pressure, Gallo had asked distributors not to sell its flavored fortified wines to retailers in low-income neighborhoods.” (Hoover’s profiles). 3. Which approach to managing a company's ethical conduct (see chap. 9, table 9.2) would you say Gallo seems to be applying? What are the challenges associated with this approach? Gallo seems to be applying the unconcerned or nonissue approach. They distance themselves from being associated with Thunderbird and Night Train brands but they allow it because its legal to sell liquor and they are not worried – everyone else is doing the same thing. The challenge they face is that stakeholders may not agree with borderline ethical/legal conduct and not invest in the company. This can lead to image loss and financial downfalls and undermine the entire company. 4. If Gallo Winery decides to abandon the Thunderbird and Night Train brands, what will be the impact on those individuals who abuse the dessert wine products? Gallo Winery did a test and did not distribute the

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