Marketing: Gallo Says Bonjour

America's biggest winery is blending foreign grapes with U.S. salesmanship--and scandalizing the industry. Will wine become homogenized?

The biggest new wine out of France last year was born in the mind of an American: Joe Gallo. That's Gallo, as in E&J Gallo Winery, America's biggest wine producer and a company many people still associate with California jug wines like Carlo Rossi. Three years ago, Joe, co-president of the company and son of legendary co-founder Ernest, returned from a trip to Europe and asked his consumer-research team to explain his French paradox: that most Americans still rated French wines as the best in the world but the French were rapidly losing market share to Australia and Italy. Why? The...

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