E J Gallo wineries: A case study

For the purposes of this case analysis of E. & J. Gallo Winery, the wine industry is composed of all alcoholic beverages that contain between eight and twenty percent alcohol by volume. This distinction is based on the assumption that beer and the typical malt liquor contain less than eight percent alcohol by volume. The twenty percent limit is a result of state and federal tax and licensing laws. The three top competitors that …

…group of "cheap, low-grade" fortified wines that contain high alcohol content to increase their potency and additional sugar or sweetener to enhance their taste. Historically, the fortified wines were made by adding brandy to raise alcohol content to prevent spoilage during shipping and to extend the shelf light. Port and sherry wines were examples of high-quality fortified wines. The low-grade fortified wines were made with cheaper grain alcohol to increase the alcohol content 14-20 percent.