Tag Archives: wine marketing

Wine and Big Business

Did you know that approximately 50% of the wine sold in America has been produced by just three large companies: E&J Gallo (Gallo, Edna Valley, cast of thousands) Constellation (Robert Mondavi, Ravenswood…), and The Wine Group (Concannon, Cupcake…)?

How do you feel about it? One thing greatly in favor for these huge companies is that each brand is usually very consistent. If you like this vintage, you’ll probably like the next. Or, do you go out of your way to buy small, independent brands?

Correction: I should have said that St. Michelle Wine Estates has over 4% of the market share, not winery ownership.

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Why Does Napa Valley Wine Cost so Much?


Question from Rick: Why does Napa Valley wine cost so much?

Reply: Good question – I’ll bet lots of people wonder the same thing. The short answer is supply and demand. But, seen through that lens, the best of Napa Valley Cabs are quite a bargain compared to their European counterparts.

You can expect to pay just over $200.00 a bottle for Shafer Napa Valley Hillside Select Cabernet – a wine that many think of as one of Napa Valley’s unofficial first growths. A current vintage of Chateau Latour, a first growth from Bordeaux, is $1000.00 a pop, give or take, depending upon where you buy it.

I don’t think any tasting panel would come to the conclusion that Chateau Latour is five times better than Hillside Select or that the Hillside Select is seven times better than Robert Mondavi’s Napa Valley Cab.
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