©2007, Clive Platman
Last March, the godfather of Californian wine died aged 97. He was Ernest Gallo, a wine-making businessman and marketing genius, who, along with his younger brother, Julio, created the world's biggest family-owned business. Until 2003, it ranked first place, when it was eclipsed by Constellation Brands, nevertheless, they still own 10,000 acres of Californian vineyards, and the family fortune is quoted at US$ 1.3 billion.
His was a classic tale of rags-to-riches. Following the repeal of Prohibition in 1933, two young Italian orphans, with a loan of $5,900 and a wine-making pamphlet borrowed from the library, rented a ramshackle building and produced 177,000 gallons of wine to achieve sales of $30,000 in the first year alone. Their wine, selling at 50 cents a gallon was aimed at the bottom end of the market, and their fortune was made through sheer hard work and doggedness.
A different story emerged in 1993, when Ellen Hawkes blew the lid on their murky past in her exposé, "Blood and Wine". The picture that was painted was of a family struggling to make an honest living and losing everything in the Depression, but the truth was that they were successful grape-growers during Prohibition, selling their fruit to "home winemakers" in, of all places, Chicago, the home of Al Capone.
Their uncle Mike was a convicted bootlegger and blackmailer and, when Julio and Ernest asked for a share in the ranch, their father responded by chasing them off with a shotgun, so went into hiding.
The real sensation followed in 1933. In mysterious circumstances, their father shot his wife and then committed suicide. The brothers naturally inherited the farm, with a persistent rumour that the deed was done by Ernest himself.
Ruthless in business, it was Ernest's drive and enterprise that enabled Gallo to dominate. From the outset, Gallo pioneered the use of technology to achieve consistency, but Ernest's real genius lay in marketing. In the 1950s, a fortified wine was launched with the slogan, "What's the Word? Thunderbird" becoming an instant best-seller. He also convinced Middle America that wine was an essential part of a social gathering. The pity was that the bar was set so low in terms of quality.
It was not until the 1980s, when sales began to stagnate, that Gallo turned his attention to the UK. There followed a promotional onslaught, and inevitably positioned themselves at the top of the sales rankings, in the under-£5 range.
By the 1990s, there was a distinct move upmarket. New products such as the mid-priced "Turning Leaf" were developed as well as a premium range from Dry Creek in Sonoma. Their wines, though, have never endeared themselves to connoisseurs.
A secretive man, not without controversy, Gallo was a prime mover in the way the wine industry is fashioned today. That Robert Mondavi was inducted into the Vintners' Hall of Fame in the same week as Gallo's death, speaks volumes for the ill-feelings that are still harboured by the wine trade.