Grapes on Asphalt: How Bronco Wine's Fred Franzia Made 'Two Buck Chuck' Possible


When you think of the professionals running the world's wine businesses, filthy mouths and public urination are probably not the first character traits to come to mind. But Fred Franzia is no ordinary vintner. CEO of Bronco Wine, now the fourth-largest wine maker in the country, Franzia hasn't let success affect his head ... or his manners.

Joel Stein of Business 2.0 magazine recently had the "pleasure" of profiling Franzia in a lengthy piece that describes the brusque Franzia relieving himself against the side of his Jeep, cursing out the competition, and claiming "We can grow [grapes] on asphalt."

Bronco Wine was put on the map with the Charles Shaw brand of wine, affectionately known as "Two Buck Chuck" and available exclusively at privately-held Trader Joe's. The Chardonnay varietal of this bargain-basement-priced beverage recently nabbed a top prize at the 2007 California State Fair Commercial Wine Competition. The label, which was first available at Trader Joe's in 2002, is now one of the fastest-growing brands in America, selling 5 million cases per year.

Stein quotes Gary Vaynerchuk of Winelibrarytv.com, who notes that while Charles Shaw has hurt some "pricier" brands of wine (say, $8 or $10 a bottle), it has also piqued the collective interest in wine in general. "[Two-Buck Chuck] has helped the industry overall by bringing in new people," Vaynerchuk says. "There are so many fools in the wine industry who are overpriced."

Which brings us to Franzia's next goal -- of seeing a profound shift in the wine industry toward lower prices. He hopes to get restaurants to lower their markups and aims to oversee the creation of affordable bottles of wine created from the same grapes as pricier brands.

While the temptation to serve, say, boxed wine out of a decanter is high, Charles Shaw is kitschy and hip enough that you'll increasingly see it served proudly at cocktail parties. And paraphrasing the wise words of one of my college friends (who was social chair of his fraternity), the more bottles you can buy, the more parties you can have.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

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