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Finding the Fruits of Success: How Gallo Turned Grapes into Gold

Article Overview: Later on in his years, Gallo was asked by a reporter if he was still enjoying life. “More than ever,” he said. “With great wines like these to drink every night, who wouldn’t?”

Finding the Fruits of Success: How Gallo Turned Grapes into Gold

Later on in his years, Gallo was asked by a reporter if he was still enjoying life. “More than ever,” he said. “With great wines like these to drink every night, who wouldn’t?”

After his father had shot and killed his mother and then turned the gun on himself, Gallo was unsure of what the future held for him. All he knew was that he now had his father’s vineyard on his hands. How did this boy who never excelled in school turn a vineyard and a loan of $5,000 into a global empire and a personal net worth of $1.2 billion?

Branding: Not every product that Gallo ventured into worked. In 1974, he introduced high quality, cork-finished varietal wines, but they quickly failed. Many said he was better off sticking to what he knew: cheap, fortified wines with nothing fancy about them except their names. Still, Gallo remained determined that he could create high quality wines using the same brand name. By adapting his advertising strategy, Gallo slowly began to convince the world that the Gallo brand could meet any market need.

Persistence: Working 12 to 16-hour days was nothing out of the ordinary for Gallo. In the beginning, when E&J Gallo Winery was made up of only E&J, the two brothers made it their mission to work as hard as they possibly could to make up for what they lacked. In the end, it was their dogged hard work that helped set them apart from the rest.

Ruthlessness: Gallo made no bones about it: if something had to be done for the sake of his company’s success then so be it. From aggressively under-pricing his competition to demanding more from his workers, Gallo let his competitive spirit shine through whenever it was needed.

Connections: Gallo was not a political man by any stretch of the imagination. But, when the time came to think about his business, he was not above getting involved in politics to make his voice heard. He cultivated powerful connections and drew on those people when the time came. He understood the importance of relationships that worked for mutual benefit and prospered as a result.

Strategy: Gallo did not become an industry leader by accident. He worked hard to not only run his business, but to also structure the industry in a way that was beneficial to him. From tightly controlling distribution channels to funding in-house research and development, Gallo implemented a strategic plan to take him to the top.

“Whatever we do has always been for the future, this being a family-owned company,” Gallo once said. “We have another mountain to climb.” Gallo never got to climb that mountain, but today, his son leads the way. Gallo continues to be an industry leader and is slowly chipping away at its reputation for nothing more than cheap, strong wines. The company continues to win blind testings around the world, demonstrating that above and beyond anything else, all it really comes down to is the wine.

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  Lesson #1: Make a Commitment to Your Brand
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Article Tags: advertising strategy, brand name, enjoying life, fortified wines, fruits, global empire, grapes, high quality, net worth, nothing fancy, persistence, quality cork, quality wines



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