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Gallo: The Wine Revolution
Michael McGuigan
Robert Douglas
Chris Grant
Michael Hurcomb
Andres Cordoba
Thomas Jefferson “the Patron of the American Wine
industry”
The Agricultural Society of Albermale County (1817)
Wine consu...
Gallo’s Vertically Integrated Supply
Chain Model
Mergers, Acquisitions, Horizontal
Integration and the Supply Chain
Vertical & Horizontal Integration
Benefits
The firm has greater
control over its products
and can push the
products that a...
The Three-Tier System
Manufactuter
•Focus on the
production
process and the
way it is
marketed.
Distributor
•Middle person...
•Consolidation of wineries and distributors (last 20 years)
•Direct to Consumer sales (DtC)
•Distribution Service Centers ...
Thank you!
Gallo presentation
Gallo presentation
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Gallo presentation

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Gallo presentation

  1. 1. Gallo: The Wine Revolution Michael McGuigan Robert Douglas Chris Grant Michael Hurcomb Andres Cordoba
  2. 2. Thomas Jefferson “the Patron of the American Wine industry” The Agricultural Society of Albermale County (1817) Wine consumption fast growing in the 19th century The Dry Period (1919-1925) The three-tier system (Manufacturer, Wholesaler/Distributor, Retailer/Consumer) Ernest & Julio Gallo (Pioneers of the Vertical Distribution Network) The Wine Industry in the U.S.
  3. 3. Gallo’s Vertically Integrated Supply Chain Model
  4. 4. Mergers, Acquisitions, Horizontal Integration and the Supply Chain
  5. 5. Vertical & Horizontal Integration Benefits The firm has greater control over its products and can push the products that are more profitable. A-B-C classification of items and the firm can push their A and B products rather than rely on the retailer. Vertical The firm continues to do what it does best while delegating others to take care of the other processes. Horizontal Integration is what enabled wineries to explore buying locations outside of the U.S., while also expanding its own domestic product to the Global population. Horizontal
  6. 6. The Three-Tier System Manufactuter •Focus on the production process and the way it is marketed. Distributor •Middle person between winery and retailer •Determines how to transport the products •Warehouses the product for period of time Retailer •Determines what products to buy in order to satisfy consumers needs. •Mark up the price to a suggested retail price •On promise and off premise locations
  7. 7. •Consolidation of wineries and distributors (last 20 years) •Direct to Consumer sales (DtC) •Distribution Service Centers (A-B-C) •Grapevine Portal (intergrade multiple business systems)Innovation • The supply and demand in wine is often hard to predict • Forcing wineries to become more horizontal integrated • Port Labor Union strikes • Stagnant economy - increasing taxes – regulations - grape and fuel costs. Challenges Innovation & Challenges
  8. 8. Thank you!

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