E & J Gallo Winery Case Study

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The American Wine Industry The American wine industry is a stable and present market in the United States with room to grow. The United States is the fourth largest wine producer in the world, averaging 465,400 gallons of wine a year. The top three countries are France, Italy, and Spain. The wine industry began with the first settlers and has persevered for centuries. Even though wine is produced virtually everywhere in the U.S. the wine producers in California have the largest economic impact of $30 billion. Wine sales have risen in the last ten years from 11.7 billion dollars to 19 billion dollars. Technological impacts have allowed winemakers to help control the quality of the wine from the vine to the liquor store. 1. Description of the Industry Wine differs by what kinds of grapes are used and what type of flavoring is added. The flavor often comes from the type of barrel used in the wine making process (usually oak). There are three main classifications of wine: Red, White and Rosé (Blush). White wines are made from light-colored grapes and are generally lighter in taste than red and blush wines. Red wines are typically produced with darker grapes, and often their stems are included in the crushing process. Today, the industry categorizes wines into six different categories: Table Wines Comprising about 84% of U.S. production Sparkling wine Comprising about 6% of U.S. production Special natural Comprising about 5% of U.S. production Dessert wine Comprising about 4% of U.S. production Vermouth Comprising about 1% of U.S. production Specialty Comprising about less than 1% of U.S. production Table wines are the most popular and fastest-growing type of wine in the United States. Table wine contains 7% to 14% alcohol by volume and is traditionally consumed with food. Table wines that retail at less than $3.00 a bottle are considered to be

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