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Snooth User: Philip James

2 Buck Chuck

Posted by Philip James, Jun 12, 2007.

Charles Shaw Straw (aka 2 Buck Chuck) wines just celebrated their 5th birthday. Fred Franzia, the company's founder, has created a legacy with these wines. Commonly retailing for $1.99 (although $3.49 in New York City), over 300 million bottles per year get sold and this single wine makes up 8%, by volume, of all wines sold in California.

What really interests me is the fact that almost all the wine is sold via Trader Joes, and the sheer volume of what passes through each store.

Here's some real back of the envelope calculations (based on some slightly dated figures), but its close enough to give you an idea of what we're talking about:

300 million bottles annually across 250 Trader Joe's stores, works out to 1.2 million bottles per store per year. At $2 per bottle, thats $2.4 million in revenue for that one brand. Thats more (about 5 times more) than the average liquor store makes per year in total across all its products.

Secondly, think of the volume you need to achieve this. To get through 1.2 million bottles in a year, you need to be shifting close to 24,000 bottles a week, or 300 cases per day - thats about 5 shipping palettes per day, or a full loaded 40 foot truck per week of 2 Buck Chuck per store. Thats 1,000 40 foot trucks of the stuff roving the US every month. Impressive!

Replies

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Reply by andrew, Jun 13, 2007.

Having shopped at Trader Joe's and seen the massive quantities of 2 Buck Chuck going out the door (and the giant stacks of cases for their display. Additional cost saving: they don't even need to open the boxes or shelve it), I'm still amazed by those numbers -- That's one bottle for every single person in the US each year!

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Reply by Wendy, Jun 14, 2007.

I think you mean "Charles Shaw." On another note...what a waste of resources. Glass, capsules, cardboard, fuel to move it all and those precious remaining parts of my liver that I'd rather expend on wine that doesn't have the aroma of V.A.

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Reply by Philip James, Jun 14, 2007.

wendy - well noticed, its been fixed, thank you

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Reply by gr, Jun 16, 2007.

Andrew, that's not one for every person, not even close. There are roughly 350 million *households* in the US.

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Reply by Eric, Feb 5, 2008.

Eric...

Man, your mind fascinates me. Thanks again for sharing....


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