Bronco Wine Company Case Study

Making Wine Accessible By Succeeding In The Discount Segment

Publication Date	April 2008
Publisher	Datamonitor
Product Type	Report
Pages	8
ISBN Number	not applicable
Product Code	DAT11069

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£160.00
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Summary

Introduction

This report on Bronco Wine forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It focuses on how the low priced wine company that has achieved substantial success with its US$2 wine, Charles Shaw, dubbed Two Buck Chuck, helping bring new consumers to the wine sector.

Scope

Highlights

Reasons to Purchase

Gain insight into the methods used by important industry players to give them a competitive edge Identify specific areas for operational improvements Capitalize on the knowledge of experienced companies when entering a new niche or market.

Content

Datamonitor View
Catalyst
Summary
Analysis
- Bronco Wine is the fourth largest US wine company, benefiting from efficient bulk wine operations
- Bronco sells over 20m cases a year from its 35,000 acre site
- The company's industrial production methods facilitate high profitability despite low margins
- but its California rivals accuse the company of devaluing the wine making region
- Bronco was fined in the past for passing off cheaper varieties as more expensive wine and lost a lawsuit preventing it from selling Napa branded wine
- Bronco defends its philosophy by insisting that it is fulfilling mass market consumer needs by providing 'everyday wine'
- Bronco has achieved substantial success with its highly accessible Two Buck Chuck brand
- The company emphasizes its branding rather than the wine location, bucking wine conventions
- despite this, Bronco does not advertise and has no website, relying instead on word of mouth recommendations to galvanize sales
- Bronco wine is sold in premium looking bottles to help provide a credible on-shelf presence
- Charles Shaw brand is dubbed Two Buck Chuck due to its US$2 price tag
- This is because even for value purchases consumer expectations have increased
- The brand does well in wine competitions, helping boost its profile
Appendix
- Case study series
- Methodology
- Secondary sources
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
List of Figures
- Figure 1: The Charles Shaw brand is marketed as an everyday table wine