Word: chardonnays
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...wine boom. Profits kept pace until 1998, but then they dropped more than 20% from a year earlier, to $29 million. Partly that was bad luck, the delayed effect of late rains in 1996 that ruined harvests and kept the company from making enough of its best-selling Woodbridge Chardonnay to meet demand a year later. But Mondavi neglected to warn retailers of the shortage and failed to put them on allocation--tell them each store could get only part of its order. Instead the winery just shipped what it could, then stopped. Angry retailers canceled their orders--not just...
...virtual valentine. I received data-matches. I've been date-sited. Pass the chardonnay and turn up the Marvin Gaye. Somebody stop me 'cause I'm on fire...
...petit faux pas, at worst, certainly nothing to make a federal case out of--unless you happen to be Jess Jackson. The burly lawyer turned winemaker created a new market segment with Kendall-Jackson Vintner's Reserve Chardonnay. When mistakes are made like Shand's, he believes it's because Turning Leaf's owner, industry giant E. & J. Gallo Winery, has unfairly copied his bottle design. So Jackson is suing Gallo, claiming it has co-opted sales of his category-topping Vintner's Reserve. Gallo disputes the charges, but there is no disputing Turning Leaf's rousing success. It shot...
...marketing and distribution muscle is top shelf. Turning Leaf turns up everywhere, and with good reason. Aided by a series of confidential memos, Jackson's lawyers showed how Gallo executives, pressured by their demanding chairman Ernest Gallo, took careful aim at the leader of the popularly priced Chardonnay market. Gallo launched its new wine directly at Kendall-Jackson, propelled by a $10 million advertising blitz and enough consumer surveys to fuel a presidential campaign...
Kendall-Jackson, whose total ad budget is $1 million, never knew what hit it. By late 1995, after a heady decade of 15%-to-20% annual sales growth, Vintner's Reserve Chardonnay began to falter. Gallo's Turning Leaf, priced at $6, was cheaper than Kendall-Jackson's $10 bottle; but its packaging, from the flanged top, visible cork and thin, cigar-band neck wrapper down to its multicolored grape leaf, was strikingly similar...