 |
|
|
|
|
 |
|
Conversations From the Corner Office
COMPANY HISTORY
E.&J. Gallo Winery
In 1933, 24-year-old Ernest Gallo and younger brother Julio Gallo applied for a permit to build a winery in Modesto, Calif., anticipating the surging demand for wine after the end of Prohibition. But the brothers had no clue as to how to make wine, so they went to the local library, checked out a how-to book and began experimenting.
The results were the first bottles of Gallo-produced wine a year later, and the beginning of what would become one of the world's biggest wine empires. That same year, the winery sold more than 170,000 gallons of red table wine to bottlers, netting some $30,000 profit.
With business booming, a division of labor was soon devised: Julio handled winemaking and vineyards, and Ernest would oversee sales and marketing. Some 70 years later, the system is still in place, a testament to a firmly-held belief in the importance of family in the company's success: Joe Gallo, the son of Ernest, is CEO. The third generation is involved as well. Matt Gallo looks after the land, Gina Gallo is an expert winemaker, Stephanie Gallo runs marketing and her brothers are in sales. In a time of consolidation and buyouts, Gallo remains one of the few privately owned wine manufacturers in the world.
Over the years, Gallo has earned a reputation for being a pioneer and tastemaker, from being the first company to introduce screw-cap bottles in the 1940s to being one of the first wine producers to advertise. Perhaps the company's most memorable venture was the introduction of the then little-known Pinot Noir wines during the late 1990s; sales skyrocketed after the movie Sideways came out in 2004.
A purveyor of global wines, the company has been bringing California to more than 90 countries around the world. In addition, Gallo has created international partnerships with winemakers in other countries, serving as importer and marketer of their wines overseas.
The business has expanded from its base in Modesto to include wineries in the California counties of Santa Barbara, Napa and Sonoma, as well as in the Great Central Valley. More than 60 brands of beverages are in the current Gallo portfolio.
It's been estimated that one of every three to four bottles of wine consumed in the United States today is produced by Gallo.
RELATED LINKS
PRESIDENT, CEO
JOSEPH E. GALLO
Take the CEO IQ Test!
Do you have what it takes for the Corner Office?
 |
DOW 0.61% |
|
NASDAQ 0.20% |
|
S & P 0.62% |
| Details... | |
The business world can be a real pressure cooker. Don't take out your frustration on the interns — duck into The Marketplace Confessional and let off that steam anonymously.
