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Interesting article on Bronco in "The New Yorker".

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Bob Ross

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Interesting article on Bronco in "The New Yorker".

by Bob Ross » Tue May 19, 2009 12:51 pm

I think you have to be a subscriber to get the article, but the extract is true to the whole article:

"ABSTRACT: THE WORLD OF BUSINESS about vintner Fred Franzia and Two Buck Chuck. Fred Franzia owns forty thousand acres of vineyards, more than anyone in the country; crushes three hundred and fifty thousand tons of grapes a year; and his company, Bronco, has annual revenue of more than five hundred million dollars. Recently, Franzia celebrated the sale of the four-hundred-millionth bottle of Charles Shaw, known as Two Buck Chuck, which is sold for $1.99 at Trader Joe’s. Franzia’s objective is to sell as much wine as possible—he sells twenty million cases a year now, making Bronco the fourth-largest winery in the U.S., and would like to reach a hundred million. He believes that no bottle of wine should cost more than ten dollars. Franzia is sixty-five and twice divorced. He is both a major seller and a major buyer on the bulk market. He owns several wineries, including one in Sonoma, and he acts as a custom winemaker for wineries without his capacity. In 2000, he opened a ninety-two-thousand-square-foot bottling plant near the Napa airport. Talking about his wine, Franzia can sound like an old-fashioned Democratic populist, though personally he’s more of a Darwinian capitalist. With Two Buck Chuck, Franzia invented a category, now a significant segment of the marketplace, which is known as “super-value” wine. His idea was to make cheap wine that yuppies would feel comfortable drinking. One way that Franzia keeps the price so low is by acting as his own distributor in California. Another efficiency is the enormous size of the wine lots he buys on the bulk market to put into the Charles Shaw brands. In 1994, Franzia pleaded guilty to conspiracy to commit fraud with Bronco by falsely labelling grapes. Today, he is chairman and C.E.O. of Bronco; his brothers Joseph and John are co-presidents. Franzia frequently buys labels and trademarks out of bankruptcy and repurposes them when he sees an opening in the market. His grandfather, Giuseppe, emigrated to California from Italy in 1893. Teresa and Giuseppe had five boys and two girls. The five brothers, including Fred and Joseph’s father, Joseph, and John’s father, John, ran the family business, Franzia Winery, in the Central Valley, where Fred grew up. In 1973, Coca-Cola bought the company. A decade ago, Franzia began buying the trademarks of Napa Valley wines, including Napa Ridge and Napa Creek. People in Napa are mystified by Franzia’s double-pronged provocation: appropriation and disdain. He has been selling a significant amount of Napa-appellation wine; half a million cases a year, he says, which puts him among the top producers in the region. He buys the wine from local winemakers, and he does the same with prized appellations all over the state. Mentions the case of Maria Isabel Vasquez Jimenez, a laborer in a vineyard belonging to West Coast Grape Farming, a company that Fred, Joseph, and John Franzia own, who fell ill in the fields last May and eventually died. Describes a visit the writer made to Franzia’s vineyards."

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