Indulge in Life in America

"How much?" Yang Cheng looked at Saul in surprise.

Sol didn't react. "How much what?"

"You just said what is the net profit of Gallo Wines in one year?"

Saul laughed, "I said that Constellation Group has a net profit of at least 300 million yuan a year, and Gallo Winery is only a lot more~"

"So much?" Lin Jian knew that selling wine was very profitable, but he didn't expect the net profit to be so high.

It's right to think about it again. Most of Constellation Group's revenue comes from beer. The cost of this thing is actually very low. It is natural that the profit is high. But Gallo doesn't seem to sell beer, right? Mainly wine and spirits.

Thinking of this, Yang Cheng couldn’t help but admire the Gallo brothers a bit. Regardless of the character of the two, they had absolutely no ability to say. Even if the story of Roy Gallo is true, the Gallo brothers are from their father. Inherited the brewing techniques, but they

No funds, no sales experience, even wine grapes are purchased on credit from farmers, and they have to face competition from mature, sophisticated and financially strong businessmen in the industry.

More importantly, they don’t know anything about commercial winemaking. Prohibition for more than ten years has caused the American winemaking industry to regress significantly. Winemaking experts are even rarer. Even if they have their father’s lifelong winemaking experience, it does not mean they can. Accomplished overnight.

Therefore, hard work is essential. When the first batch of wine is brewed, it is necessary to sleep in the winery, and even work for several days and nights to successfully brew the first batch of red wine and make good profits. Otherwise, their business It can only stop here.

It can be said that Gallo Winery has today's scale and is absolutely inseparable from the abilities of the brothers. Then again, the first pot of gold of most successful people in the world is not clean, even full of gold. Bloody.

Just in time, Roy toasted a circle of wine and came back, and was stopped by Sol when he passed by, "Come over and talk to us for a while?"

Roy just wanted to take a break, stopped, and beckoned to the waiter to send someone some snacks, including his own cheese.

"What are you talking about?" Roy took a bite of cheese and wine.

Sol bluntly said, "Talk about how much money your winery can earn~"

Yang Cheng also said, "And without mentioning the character of your two uncles, I admire the ability to make money."

Roy actually agreed, "I also admit that there is a saying that Ernest and Giulio's business talents are beyond doubt.

We must know that in the second year of the establishment of the winery, they dared to buy more wine-making equipment and grapes. In the following years, they successively purchased the equity of the bottling plant and acquired more wine companies and wine-making companies.

After World War II, most wineries in the United States suffered huge losses. At that time, a considerable number of wineries went bankrupt and went out of business. Gallo Winery is one of the few companies that can maintain profitability.

In the 1950s, Gallo Winery became the largest winery in the United States. Only 15 years later, it became the largest wine company in the United States, ranking first in the United States in terms of sales.

What I admire most is their vision. As early as when the winery was first established, Ernest put forward the corporate principle of focusing on long-term benefits and not overly concerned with immediate profits.

And for so many years, they have refused to list Gallo, and even warned their sons, my cousins, not to go public in the future. If they are forced to go public, they must buy back the shares after making enough money. Keep the family business model unchanged. "

Yang Cheng couldn't help but nodded when he heard the words. He agreed with this idea. If it weren't for maintaining the purity of management, it would be difficult for Gallo Winery to have the scale it is today.

Today, Gallo Winery has become the most leading company in the American wine industry, and at the same time has developed into a completely independent comprehensive winery with its own vineyard, glass bottle production plant, bottling facilities, bottle sealing production, and outer packaging Design and a complete set of logistics and distribution systems, they rely on decades of operation to create an entire industrial chain, from the most upstream to the most downstream, each link is under their control, even if small profits but quick turnover , Can also accumulate massive profits.

It seems that in 2011, Gallo Winery once accounted for nearly 23% of the American wine market, and this number continues to grow.

And for nearly 8 years, it won the championship in the "World's Most Influential Wine Brand" competition. In recent years, it has regressed slightly, but it still ranks in the top three. A large part of this is due to Gallo wine. Zhuang has separated several independent brands, because the award is comprehensively evaluated according to the brand’s market share, brand growth, price positioning, market scope and popularity and other factors. It is extremely authoritative. It is conceivable to separate several important brands. After the brand, Gallo can still rank in the top three, how powerful its strength is.

Roy suddenly looked at Yang Cheng and said, "In fact, Gallo can have today, and I also want to thank the country Z market. As early as 20 years ago, Gallo entered the country Z market, and the total sales volume has exceeded 100 million bottles."

Yang Cheng said, "However, Gallo's main market is still in the United States. Today's wine market is undersupply and has a strong self-digestibility."

Sol also followed, "This is what I want to say, the US market still has huge dividends and opportunities, and Gallo will never stop."

Roy looked sad. He might think of such a smashing brand, using his own surname, but having no relationship with him at all, and he felt a little confused.

Yang Cheng could understand that it would be uncomfortable for anyone to do this. This is a huge wealth!

Seeing that the atmosphere was a little low, Yang Cheng said hurriedly, "Just talked about the country Z market. Although Gallo Winery ranks first in the world in sales and is also the world's largest wine company, American wines represented by Gallo and Constellation, In recent years, the export volume to country Z has obviously lags behind that of wine producing countries such as France and Australia."

Roy shook his head, "This doesn't mean that American wine is not good. You can't just look at the development momentum of American wine based on export volume. Compared with producing countries such as France and Australia, the export pressure of American wine is not great. As you said, As the world's largest wine consumer market, the supply of American wine in the local market is basically less than demand, and most of the wine produced is self-digested in the local market, and there is no room for export.

The United States has always been the world's largest consumer country. It is also the only country whose production volume is less than consumption among the top three wine consumption markets in the world. This year the United States has consumed about 34 billion U.S. dollars worth of wine. If calculated according to market share, A quarter belong to Gallo Winery. "

On this point, Sol is similar to Yang Cheng's thinking, "but it cannot be denied that the wine consumption capacity of country Z is awakening, and the future opportunities may be more than the United States."

Roy will certainly not deny that this is a fact that is visible to the naked eye. "I can only say that American wine has not really exerted its strength in the country Z market. As far as I know, there are very few stores specializing in American wine in the country Z market. There are no American wine merchants who specialize in promotion and sales in country Z. It is the French and Australian wines that have changed the perception of most consumers in country Z, but I believe all this will change over time."

After a pause, he sighed, "Think about it, in the case that Gallo Winery has not invested in the layout, more than 100 million bottles of red wine have been sold in Country Z in the past 20 years. What if you formally use it?"

"This investment is not small. If Gallo Winery really wants to make a difference in the country Z market, at least all the profits it has earned over the years can be seen."

Roy shrugged, "This is not a difficult task. This is why Ernest and Giulio insist on not going public. They have absolute autonomy over the winery. As long as they want to do it, they will take the money to do it. Under the control of the board of directors."

Yang Cheng understands, “In fact, the wine industry has a long investment cycle and a high degree of capital intensiveness. These characteristics have determined that private companies are the most suitable business model. Compared with listed companies, private companies will not have short-term return pressure. There are longer-term plans. From this point of view, your two uncles have very clear business thinking. It is not easy to be able to keep a clear head in the face of greater profits."

To sum up in one sentence: if the character is not good enough to make money, this tm is better than anything else!

Roy sneered, "You don't know my two uncles, they are all hypocrites, on the surface they are impeccable, but there is a pile of **** in the bones, no, it smells worse than shit."

This is the spirit of the wine, a little bit reluctant to speak.

Sol bluntly said, "But you can't deny their ability."

Roy nodded, "I didn't deny that character is character and ability is ability. I can tell it clearly. In business, they act decisively when doing things. Once they make a decision, they will do it immediately, ahead of all competitors.

If there is good equipment on the market, buy it right away; if you need a new factory, build it right away; if competition intensifies and you need to increase sales staff, do more advertising, or lower prices, then just do whatever you want.

They think about profit, never considering a quarter, not comparing this year with the past few years, but comparing it with the next ten years. I admit that they have done a good job. Sometimes I think about it. The harder is better. "

Saul and Yang Cheng looked at each other~www.wuxiaspot.com~ They also noticed Roy's ambition, he wanted to do better than the two uncles.

This is good news for Sol, at least there is a chance.

But to Yang Cheng, he was only faintly moved, but he had not made up his mind yet.

"Do you know why I am so anxious to launch a new wine?" Roy blushed.

He has drunk at least 3 bottles of red wine tonight. The red wine has a great stamina. After talking for so long, the drunkenness surged up, and his speech became unscrupulous, no longer as cautious as before.

Facing his question, Saul and Yang Cheng shook their heads.

Roy laughed at himself, "Because I'm afraid, in recent years, Gallo Winery will spend 100% of its profits as market input expenses, continue to purchase high-quality vineyards in Napa Valley, Moon Valley and other places, and invest in building super The purpose of a high-end brand cannot be clearer. Once it succeeds, I am afraid I will never have the opportunity to get back what I deserve."

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