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+--- Thread: Gallo Enters Napa (/thread-13308.html)
- Innkeeper - 09-10-2002
According to an exclusive missive from Dan Berger this morning, Gallo has acquired L.M. Martini Winery. Two thoughts.
1. More and more consolidation. Can it be good?
2. The way marketing goes these days, it is probably best for Martini. The problem isn't consolidation of wineries, it is consolidation of wholesalers. The small handful of wholesalers in the country today and pick and choose as they choose. The only hope for medium to small producers these days is to "Free The Grapes."
- Botafogo - 09-10-2002
From the San Fran Chronicle:
The sale was a result of market pressures that squeezed the Martinis' ability to distribute their wine, said Carolyn Martini, president and chief executive officer and a granddaughter of founder Louis M. Martini.
"You have to either be really small or really big," she said."We were somewhere in between."
While the winery has brand recognition and a host of awards for its selections, successfully distributing the products became too difficult. When Carolyn Martini joined the winery in 1975, there were 45 wholesalers; now, there are just three major players, she said.
I just hope and pray that someday John Ascroft will get tired off trying to re-write the constitution and get the Anti-Trust guys on to this....
Roberto
[This message has been edited by Botafogo (edited 09-10-2002).]
- Bucko - 09-10-2002
No kidding, the wine wholesalers have become like Microsoft to the computer world.
- Thomas - 09-11-2002
Men--load your muskets. We must get 'em afore they get us.
In NYCity we still have a host of small distributors who have passion for the product. Even though there are days when the number of sales people makes it seem like too much, thems are the ones with whom I choose to work. And wineries can also choose to use them.
But one problem that wineries have is that they expect a lot from distributors, as in brand building, and that is not what distributors do best--that is the producer's job to a great extent. It is an expensive job and so, the mid-sized wineries (like Martini) must ultimatley cave in. The system says a lot for establishing cooperatives as they do in parts of Europe, but try getting two winery owners in a room to agree on where to sit!
[This message has been edited by foodie (edited 09-11-2002).]