E. & J. Gallo Winery

E. & J. Gallo Winery (Insert Name) (Institution) Wine Industry: Case study Wine is any alcoholic beverage that contains eight to twenty percent of alcohol by volume; the limit required by law. Since 1986, the wine industry in the United States been experiencing limited growth and this has been attributed to various reasons. First, the supply of wine has outrun the demand for it. In 1986 for instance, the volume and per capita wine consumption in the United States grew to a peak of six hundred million gallons. Due to diminished demand, this consequently led to a decline in growth rate of the wine sales retail value. The other reason is poor technology. From this case study, it was found that the companies did not have enough winemaking facilities that would have allowed for the production of high quantities of wine which would subsequently lead to lower costs and hence more profit margins. Thirdly, the industry still relies on nature for growing its grapes. As a result, much of the crop is lost due to unfavorable weather conditions, diseases and pests leading to low yields and hence low production of the wine (Anonymous, nd). The management therefore needs to address these issues. The issues above as depicted in this case study are indeed responsible for the decline in growth of the wine industry. There is a declining demand for the product not just in the united states but worldwide. According to the International Organization of Vine and Wine in 2008, consumption of wine fell in all major wine-producing and consuming countries in Europe including Italy, France and Germany (Sullivan, 2009). This has been largely attributed to media influence and health concerns on the dangers...