TomHill wrote:Just finished reading the book ystrday.
Hublein, Constellation, Diageo, Allied-Lyons, etc. OTOH, Coca-Cola looks pretty good. They realized that the wine biz didn't offer up the obscene profits that the soft-drink biz does and made a graceful exit.
In the early '70s, while contemplating in a speech the direction of the Taylor Wine Company its president laid out plainly that the then wildly successful company (largest Northeastern wine company, and for a time the sixth largest US wine company, until the '70s the largest sparkling wine producer in the US, and among the most successful foritified wine producer in the world) should never sell to a Liquor or Food industry giant, because they had no idea how to operate in the wine business. He said that if the company were to continue to expand it either had to buy its own large California company or sell to a major company of international power--Coca Cola was that company.
Before it pulled out, and with the help of Dick Peterson's winemaking, Coke developed one of the fastest successful brands ever, Taylor California Cellars, from zero to 8 million cases within about three years. But they could not make enough money in the wine business, certainly unlike the profits they could make from carbonted water and sugar.
Dick had nothing bad to say to me about Coca Cola. He had little good to say about Seagram, who took over Taylor from Coke, and he was not alone.
Yes, Brian: the conglomerates generally had no idea what they were doing in the wine business.