Chapter 1777 It’s Impossible to Make Money without Good Character

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

Thor didn't react. "How much?"

"You just said how much net profit Gallo Wine Company makes in a year?"

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

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

After thinking about it, it was right. Most of the Constellation Group's revenue comes from beer. The cost of this thing is actually very low, and it is natural for the profit to be high. But Gallo Winery doesn't seem to sell beer, right? Mainly wine and spirits.

Thinking of this, Yang Cheng couldn't help but admire the Gallo brothers. Regardless of their character, their abilities were absolutely lacking. Even if Roy Gallo's story was true, the Gallo brothers learned from their father. Inherited the wine-making techniques, but they

With no capital and no sales experience, even the wine grapes were purchased on credit from farmers, and they had to face competition from mature businessmen with strong financial resources in the same industry.

More importantly, they know nothing about commercial winemaking. The more than ten years of Prohibition has caused a significant setback in the American winemaking industry, and winemaking experts are even rarer. Even if they have their father’s lifelong winemaking experience, it does not mean that they can All at once.

Therefore, hard work is essential. When brewing the first batch of wine, they must sleep in the winery and even work for several days and nights to successfully brew the first batch of red wine and make a good profit. Otherwise, their career will be ruined. That can only go so far.

It can be said that the scale of Gallo Winery today is absolutely inseparable from the abilities of the two brothers. Then again, the first pot of gold of most successful people in this world is not clean, or even stained. The smell of blood.

Just in time, Roy came back from a toast. When he passed by Sol, he stopped him and asked, "Come here and talk to us for a while?"

Roy just wanted to take a rest, so he stopped and waved to the waiter, who brought him some snacks, including his own cheese.

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

Sol said bluntly, "Let's talk about how much money your winery can make~"

Yang Cheng also said, "Not to mention the character of your two uncles, I admire their ability to make money."

Roy actually echoed, "I admit it too,

There is no doubt about the business talents of Ernest and Julio.

You must know that in the second year after the establishment of the winery, they dared to purchase more winemaking equipment and grapes. In the following years, they successively acquired equity in bottling plants and merged with more wine companies and winemaking 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 closed down. Gallo Winery was one of the few companies that could maintain profitability.

In the 1950s, Gallo Winery became the largest winery in the United States. Just 15 years later, it became the largest winemaking company in the United States, ranking first in sales in the United States.

What I admire most is their vision. As early as when the winery was first established, Ernest proposed the corporate principle of focusing on long-term interests and not overly caring about immediate profits.

And for so many years, they have refused to list Gallo, and even warned their sons, which are several of my cousins, never to go public in the future. If they are forced to go public, they should buy back the shares after making enough money. Keep the family business model unchanged. "

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

Today, Gallo Winery has become the leading enterprise in the American wine industry, and has also developed into a completely independent comprehensive winery, with its own vineyard, glass bottle production plant, canning facilities, bottle sealing production, and packaging. Design and a complete set of logistics and distribution systems. With decades of operation, they have created an entire industrial chain, from the most upstream of the industry to the most downstream. Every link is under their control, even if they make small profits but quick turnover , and can also accumulate massive profits.

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

For nearly 8 years, it won the crown in the "World's Most Influential Wine Brands" competition. It has regressed slightly in recent years, but it is still ranked in the top three. A large part of the reason for this is Gallo Wine. Zhuang has separated several independent brands, because this award is comprehensively evaluated based on factors such as the brand's market share, brand growth, price positioning, market scope and popularity, etc. It is extremely authoritative. It can be imagined that after the separation of several important After the brand, Gallo can still be ranked in the top three, how powerful it is.

Roy suddenly looked at Yang Cheng and said, "Actually, Gallo can be where it is today thanks to the country Z market. Gallo entered the country Z market more than 20 years ago and has sold more than 100 million bottles in total so far."

Yang Cheng said, "However, Gallo's main market is still in the United States. Today's wine market is in a situation where supply exceeds demand and the ability to self-digest is extremely strong."

Saul also followed, "This is what I want to say. There are still huge dividends and opportunities in the U.S. market, and Gallo will never stop."

Roy's expression was gloomy. He might have felt a little blocked when he thought that such a powerful brand, using his own surname, had nothing to do with him.

Yang Cheng could understand that this would make anyone feel uncomfortable. This was a huge fortune!

Seeing that the atmosphere was a little gloomy, Yang Cheng hurriedly said, "I just talked about the country Z market. Although Gallo Winery ranks first in the world in terms of sales and is also the largest wine company in the world, American wines represented by Gallo and Constellation, In recent years, the export volume to country Z has obviously lagged behind France, Australia and other wine-producing countries.”

Roy shook his head, "This does not mean that American wine is not good. The development momentum of American wine cannot be judged simply by 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. Most of the wine produced is digested in the local market, and there is no spare capacity for export.

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

Sol and Yang Cheng have similar ideas on this point, "But it cannot be denied that the wine consumption capacity of country Z is awakening, and there may be more opportunities in the future than the United States."

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

He paused and sighed, "Think about it, Gallo Winery has sold more than 100 million bottles of red wine in country Z in the past 20 years without investing any energy in its layout. What if it officially launches its efforts?"

"This investment is not small. If Gallo Winery really wants to develop its efforts in the country Z market, it must at least use all the profits it has earned over the years to be able to see results."

Roy shrugged, "This is not a difficult task. This is why Ernest and Julio insist on not going public. They have absolute autonomy over the winery. If they want to do it, then use the money to do it. They will never do it." Clamped down by the board of directors."

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

To sum it up in one sentence: If you don’t have good character, you can make money, but this is better than anything else!

Roy sneered, "You don't understand my two uncles. They are both complete hypocrites. They look impeccable on the surface, but underneath they are just shit. No, they smell worse than shit."

This was because he was drunk, and he was talking indiscriminately.

Saul said bluntly, "But you can't deny their capabilities."

Roy nodded, "I don't deny it either. Character is character and ability is ability. I can tell the difference clearly. In business, they act decisively. Once they make a decision, they do it immediately and get ahead of all their competitors.

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

When they consider profits, they never consider a quarter. They do not compare this year with the past few years, but with the next ten years or so. I admit that they have done a good job. Sometimes I think about it. I am afraid that it would be very difficult for me. Hard to do better. "

Sol and Yang Cheng looked at each other, and they both noticed Roy's deep ambition. He wanted to do better than his two uncles.

This is good news for Thor, at least there is a chance to take advantage of it.

But for Yang Cheng, he was only vaguely moved, but he had not yet completely made up his mind.

"Do you know why I am so anxious to launch a new wine?" Roy said with a blushing face.

He had drank at least 3 bottles of red wine tonight. The red wine had a strong aftertaste. After chatting for so long, he became drunk and became careless in speaking, no longer as cautious as before.

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

Roy laughed at himself, "Because I'm afraid, in recent years, Gallo Winery will use 100% of the profits of the year as market investment expenses, continue to acquire high-quality vineyards in Napa Valley, Moon Valley and other places, and invest in creating super-high-quality vineyards." The purpose of a high-end brand is very clear. Once it succeeds, I'm afraid I will never have the chance to get back what I deserve."

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