Industry: Subtle Shift

One of the tastier rivalries in U.S. business involves the nation's two major wine-producing states: California and New York. California, with its sunny climate and rich soil, is far in the lead. It sells a full three-fourths of domestic wines (143 million gallons) and conducts a vast promotion campaign, currently featuring the barrel-chested baritone on horseback who peals (and pours) Gallo's praises on TV.

But New York producers can hoist their own glasses: though their some 35,000 acres of vineyard cannot match the Californians' 463,000 acres, their sales are growing faster. While California's share of the U.S. wine...

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