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October 2013
Concha y Toro Gives Fetzer Brighter Future
Fetzer takes steps to recover from its loss of market share and momentum after being neglected by its past giant spirits owner
by Paul Franson
It’s an old story: A giant liquor, beer or soft-drinks company sees the excitement and growth of the wine business, so it buys a hot winery, figuring it can improve operations and get economies of scale in marketing and sales. After a period of euphoria, it learns the realities. The ingredients in wine are much more expensive than those in spirits, beer or cola. Wine can only be made for a short time each year, so expensive assets sit idle. As an agricultural product, it’s highly de...
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