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

Beth Gaston Moon — Tue, 11 Sep 2007 16:00:00 EST

Filed under: Products and Services, Consumer Experience, Magazines, Competitive Strategy, Entrepreneurs, Agriculture, Small Business

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.

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

Grapes on Asphalt: How Bronco Wine's Fred Franzia Made 'Two Buck Chuck' Possible originally appeared on BloggingStocks on Tue, 11 Sep 2007 16:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Charles Shaw's 20-dime wine claims top prize

Beth Gaston Moon — Mon, 16 Jul 2007 11:11:00 EST

Filed under: Products and Services, Consumer Experience

Until recently, the Charles Shaw label of wine - priced at $1.99 per bottle - was great for large parties, weeknight drinking, or cooking. But now, its Chardonnay is appropriate for even the most discriminating palette. Affectionately known as "Two-Buck Chuck," Charles Shaw offers six varietals from California vineyards, all of which are available exclusively at Trader Joe's, a unit of the privately held ALDI Group.

This year, results from the 2007 California State Fair Commercial Wine Competition proved that good things don't necessarily come in pricey packages, as Charles Shaw Chardonnay defeated hundreds of competitors to claim the top prize. One judge told ABC News that "It was a delight to taste." The second-place wine carried a retail price of $18, and the most expensive wine in the competition, at $55 a pop, didn't even earn a medal.

Fred T. Franzia is the chairman and CEO of Bronco Wine, creator of "Two-Buck Chuck." By keeping costs down and utilizing cheaper grapes from outside the Napa Valley, he continues to offer fine-quality wine at a pittance. A recent article in Inc.com notes that "Franzia's mission is to make wine so affordable and plentiful that every American can put a decent bottle on the dinner table." The surging popularity of Charles Shaw has grown Bronco into the fourth-largest wine company in the U.S. Last year, the company sold 20 million cases, or 240 million bottles.

The article also points out that Bronco owns nearly three quarters as much vineyard acreage as the entire Napa Valley combined. The company is also adding three to six square miles every year. With a shiny new blue ribbon to its credit, Charles Shaw could see its popularity surge even more, requiring more and more vineyard space to be snatched up.

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

Charles Shaw's 20-dime wine claims top prize originally appeared on BloggingStocks on Mon, 16 Jul 2007 11:11:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments