Business Wars Gallo: Godfathers of Wine | Thunderbird | 4
Oct 14, 2020
In the 1940s, the Gallo brothers pivot from war contracts for ethyl alcohol to the grape market. They face internal conflict over sales strategies that spark rivalry between them. Ernest's controversial creation, Thunderbird, catapults their success but strains their relationship. The podcast also delves into the wine industry's competitive spirit and challenges, highlighting the brothers' innovative marketing amidst civil unrest. Quality versus quantity becomes a focal point as they navigate a shifting landscape filled with high stakes and tension.
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Wartime Gamble
- During World War II, Ernest and Julio Gallo secured government contracts to produce ethyl alcohol for torpedo juice and jet fuel.
- They also made a risky bet on the grape market, anticipating post-war demand.
Queen of the Crush
- John Freiberg, Gallo's advertising executive, orchestrated a publicity stunt for Life Magazine.
- It featured a "Queen of the Crush" bathing in wine, boosting Gallo's national presence.
Market Manipulation
- Ernest Gallo predicted a post-war wine market crash and strategically sold bulk wine to competitors.
- When the market crashed, he bought back the surplus at a lower price, strengthening Gallo's position.