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How the new CEO behind Two Buck Chuck plans to ‘win' the wine crisis
How the new CEO behind Two Buck Chuck plans to ‘win' the wine crisis

San Francisco Chronicle​

time19-06-2025

  • Business
  • San Francisco Chronicle​

How the new CEO behind Two Buck Chuck plans to ‘win' the wine crisis

Dom Engels has got to have one of the toughest jobs in California wine right now. In November, he became CEO of Bronco Wine Co., which produces an estimated 3.5 million cases annually of some of the country's most famous bargain-priced brands like Crane Lake, Salmon Creek and Charles Shaw, a.k.a. Two Buck Chuck. Engels has arrived at a moment when the wine industry is in a tailspin. The sub-$10 category, Bronco's bread and butter, is experiencing some of the sharpest sales declines. Since the beginning of the year, Bronco, which is owned by the Franzia family, has laid off 227 employees from its Central Valley headquarters. But Engels claims to relish the challenge. 'I love the complexity of trying to win in a difficult environment,' he said. 'Because there are always winners.' The vision he has for Bronco runs counter to much of the industry's conventional wisdom. Engels believes that 'premiumization,' the march toward ever-higher prices, did a 'disservice' to consumers. That the fast-growing ready-to-drink category, which encompasses canned cocktails like High Noon, is overrated. That organic wine will always remain a 'niche.' His perspective is largely one of an outsider. Although Engels worked at the Wonderful Co. when it acquired Paso Robles' Justin Vineyards and Sonoma's Landmark Vineyards, he has mostly worked in other fields. Before joining Bronco he served as the CEO of the school-lunch producer Revolution Foods, and before that as CEO of Stone Brewing, a behemoth of craft beer. Looking at the wine industry, 'honestly, I draw a lot of analogs from the craft beer dynamics over the last eight or nine years,' Engels said. When he joined Stone in 2016, craft beer was consistently seeing double-digit annual growth. That changed somewhat abruptly, a couple of years before the wine industry's own wake-up call. The luxury tier is way outperforming the value tier right now: Sales of wines over $50 increased 1% last year, according to the Wine & Spirits Wholesalers of America, while wines priced $8-$10.99 dropped 12.7%. Many of Bronco's best-selling products are under $5. But Engels is undeterred. 'We firmly believe that the value segment is very important for creating lifelong loyalists,' he said. The premiumization trend completely ignores 'the funnel of new 21-year-old consumers.' That said, Bronco is also inching up, a little bit. 'We are probably overindexed in value,' Engels admitted. Without abandoning Two Buck Chuck, he hopes to also play more in the $15-$20 range. In February Bronco acquired Wine Hooligans, a Santa Rosa winery whose bottles sell for $12 and up. Recognizing that Bronco's value-priced wines have been treated 'more like labels than as true brands,' Engels is building out his brand marketing teams. Crane Lake Chardonnay, $4.49 at a local Total Wine, may not have seemed like a strong branding opportunity in the past, but Engels believes wines like these could benefit from a bigger social media footprint. He also plans to open more tasting rooms — a priority informed by his time working with beer taprooms. Of the more than 100 brands Bronco owns, the only public space in California is Rosenblum Cellars in Oakland. He imagines opening something at Wine Hooligans, in a Santa Rosa industrial park, and at the home winery in Ceres (Stainslaus County). 'I think we should have a couple of billboards on the 99, really invite people to see what we're doing here,' Engels said. Does that mean we can expect a Two Buck Chuck tasting room? Engels laughed. 'Not sure about Charles Shaw,' he said. More likely is a 'multi-brand specialty store,' spanning the Bronco portfolio. At the same time, like many of its peers, Bronco is contracting. The company has removed some of its vineyards, a response to California's grape surplus, and 'moth balled' others — pruning them short and letting them lay dormant until the company has the need for the acreage again. Bronco is a major California landholder, with the capacity to farm 'a significant five-digit number of acres,' Engels said, but is currently farming 'in the middle four digits.' All of the grapes Bronco farms are 'sustainable,' Engels said, a term that adheres to certain environmental standards but still permits the use of synthetic herbicides like RoundUp. A small amount of Bronco's vineyards are organic, and Engels doesn't have plans to expand that. Organic farming requires such high costs that it necessitates higher-priced wines, in his view, 'and I don't think the market necessarily always rewards that premium price,' he said. The company is also contracting its workforce, new brand marketers notwithstanding. The 227 workers laid off in Ceres included mechanics, lift truck operators and viticulturists. 'It's hard, but I don't think the winery's ever really adjusted its workforce in the 50 years before I joined, and I think there are a lot of wineries like that,' he said. 'You go on a diet first before you reach the lifestyle change phase.' In Bronco's case, that lifestyle change will not involve ready-to-drink, the ultra-fast-growing category of beverages that encompasses canned cocktails and hard seltzers. The space is too crowded. 'They're churning very fast and it's very difficult to build something there,' he said. 'We're not seduced.' He is intrigued, however, by half-bottles and boxed wines. (Despite being owned by the Franzia family, Bronco does not own the boxed-wine brand Franzia.) Tough as his job may sound, don't feel bad for Engels. He's having fun, he swears. 'When the tide is ebbing, that's what really separates great operators from folks that participated as a passenger in the category growth,' he said. 'I love that.'

Parents Throw Trader Joe's-Obsessed 4-Year-Old the Perfect Themed Birthday Party (Exclusive)
Parents Throw Trader Joe's-Obsessed 4-Year-Old the Perfect Themed Birthday Party (Exclusive)

Yahoo

time17-06-2025

  • Entertainment
  • Yahoo

Parents Throw Trader Joe's-Obsessed 4-Year-Old the Perfect Themed Birthday Party (Exclusive)

Jenni and Sean Glester had a special idea, a year in the making, in mind for their son Joey's 4th birthday party The "Trader Joey" themed event celebrated all the birthday boy's favorites from Trader Joe's The family tells PEOPLE about the special meaning behind their son's name and why this event is one they'll always rememberA newly minted 4-year-old's family went all out to give him a celebration that fit him just right. Jenni Glester and her husband Sean put together an epic Trader Joe's-themed 4th birthday party in celebration of her son Joey, who loves visiting the store with his mom. The Florida toddler enjoys "pushing the kid-sized red cart, picking out produce and shopping for new snacks," his mom tells PEOPLE. "Celebrating Joey and gathering with loved ones are two of our favorite things to do. We came up with the theme a few years ago," Jenni shares. "We were brainstorming and planning for almost a year ... taking note of his favorite snacks and fun touches that make Trader Joe's so unique. Sticking exclusively to Trader Joe's food and beverages was a fun challenge — and we even found some new favorites in the process!" Never miss a story — sign up for to stay up-to-date on the best of what PEOPLE has to offer​​, from celebrity news to compelling human interest stories. For Jenni, getting the celebration just right meant nailing all the details. For decor, the family saved up packaging from their Trader Joe's favorites "for several months, to repurpose for decor and a 'shopping' area." The group of over 20 parents and kids also enjoyed a "create your own bouquet" area, inspired by the store's fresh-flower selection, with flowers from Kings Wholesale Florist. Kids also had fun playing in a "Trader Joey's" bounce house, supplied by The White Bounce House of Tampa and Sarasota. As for the menu, Joey's favorites — Diner Mac 'N Cheese, meatballs, mini chocolate chip cookies, cheese, crackers, fruit and vegetables — were all included. Goodie bags were filled with his favorite snacks, including fruit leather and seasonal Cherry Lemon animal crackers. There were juice boxes for the kids to sip on, while grown-up guests enjoyed a selection of Trader Joe's wine and beer, like Two Buck Chuck, Josephsbrau Grapefruit Radler, Boatswaine IPA and Tarogino Frizzante Sparkling Orange Wine. The family even fit in a crafty approach to birthday cake. Joey's birthday cake consisted of six Strawberry Lemon Mini Sheet Cakes brought together. "We had a lot of fun challenging ourselves to purchase everything we served from Trader Joe's. All food and drinks were from there! The cake was six of the Strawberry Lemon Sheet Cakes, assembled with Lemon Curd between the layers, then topped with fruit. The kids loved the Diner Mac and Cheese, meatballs and tons of other snacks," Jenni says. The result was a birthday party that both the birthday boy and his family are sure to remember forever. "Joeyboy is so fun-loving. He's game for all of his mom's wild ideas — and he had the best time celebrating with his friends and family," Sean says. Jenni notes that while it was a fun event to put together, it celebrates something even more special related to Joey's name. "The theme is a fun pun on Joey's name, but it's extra special to us, because he's named after Sean's late dad, Joe, and my late mom, Joanne," she explains. "This was the perfect way to lean into something Joey loves, while also celebrating his name, which means the world to us." The family had "so much fun" putting the event together that they're already starting to work on ideas for Joey's 5th birthday. Read the original article on People

The Friday Checkout: Kroger investigation is a reminder for grocers to button up their pricing
The Friday Checkout: Kroger investigation is a reminder for grocers to button up their pricing

Miami Herald

time16-05-2025

  • Business
  • Miami Herald

The Friday Checkout: Kroger investigation is a reminder for grocers to button up their pricing

Consumer Reports, The Guardian and the Food & Environment Reporting Network released on Wednesday an investigation claiming Kroger has a "price tag problem" that leads to overcharging shoppers on sale items. "Kroger stores in multiple states, the investigation has revealed, show a pattern of overcharging customers by frequently listing expired sale prices on the shelves and then ringing up the regular prices at checkout," The Guardian story says. The investigation is based, in part, on the three news outlets tapping "secret shoppers" across more than a dozen states as well as union grocery workers in Colorado to document pricing discrepancies with purchases. Kroger told the news outlets that the price tag errors represented "a few dozen examples across several years out of billions of customer transactions annually." "While any error is unacceptable, the characterization of widespread pricing concerns is patently false," the grocer said in a statement, noting that it is "committed to affordable and accurate pricing" and conducts price checks regularly that review "millions of items weekly to ensure our shelf prices are accurate." The report adds to Kroger's chaos this year, from the sudden exit of top executive Rodney McMullen after an ethics investigation to the grocer's legal battles with Albertsons and C&S Wholesale Grocers over their failed merger attempt. The explosive report also comes at a time when grocers are facing ongoing scrutiny from government officials, watchdog groups and consumers (as well as Grocery Dive) over their pricing practices as shoppers continue to worry about how much they spend on groceries. A lawsuit filed earlier this year accuses Publix of overcharging shoppers for certain on-sale foods sold by weight, such as cheeses and deli items. The increased scrutiny on grocers' prices and sales serves as a reminder to supermarkets to button up their strategies and technologies so they avoid pricing errors. In case you missed it Wholesale clubs outpace Walmart in store visit growth Price-sensitive shoppers are buying in bulk these days. In the first quarter of this year, wholesale clubs outpaced superstore retailers in-store visit growth, according to Costco saw visits rise 6.1% during Q1, while BJ's Wholesale Club saw visits increase 4% and Sam's Club enjoyed a 2.7% bump in traffic. Visits to Walmart, meanwhile, declined 2.4% while store visits to Target declined 4.1%. Placer noted that year-over-year traffic growth at Walmart turned positive in April while Target's decline shrank to 3.3%, indicating consumers are stocking up ahead of expected impacts from tariffs. Grocery Outlet uncorks a $5 wine Eager to take on Trader Joe's famous Two Buck Chuck label, Grocery Outlet has come out with its own budget line of wine. According to SFGate, Grocery Outlet recently debuted Second Cheapest Wine, which includes pinot noir, cabernet sauvignon, sauvignon blanc and two types of chardonnay, for $4.99 per bottle. The wines are currently available at stores in five states - California, Oregon, Washington, Idaho and Nevada. SpartanNash is hot for brats Frankly speaking, there's no better time than now to fire up a grilling-themed display in grocery stores. SpartanNash has heeded the call, announcing this week that it's setting up a limited-time bratwurst-themed destination inside Family Fare, D&W Fresh Market and Martin's Super Market stores. The Brat Shop, which is open through Labor Day, offers an eye-catching selection of bratwurst, including pineapple teriyaki, smoky honey barbecue, zesty cheddar taco and a local delicacy known as the Michigander that has a cherry finish. Impulse find Aldi wants shoppers to light a "Burning Cash" candle Aldi is coming out with a new line of scented candles. But they're not the kind that you light to freshen up a room or unwind at the end of the day. The discounter's new must-have counter companions smell like burning cash. Sounds refreshing, no? Ever eager to let shoppers know it has really low prices, Aldi plans to make a limited batch of candles available to shoppers via a dedicated website starting May 21. Those lucky enough to score the home decor dream glow-up that Aldi generously claims carries "soft, smokey undertones" will get not one, but two Burning Cash candles. The second candle is ostensibly to give to a friend who needs to switch to Aldi, but they also make a great gift for your least favorite coworker or as a handy way to get rid of vermin in your attic. Copyright 2025 Industry Dive. All rights reserved.

Popular Trader Joe's wine brand has bad news, making harsh choice
Popular Trader Joe's wine brand has bad news, making harsh choice

Miami Herald

time06-05-2025

  • Business
  • Miami Herald

Popular Trader Joe's wine brand has bad news, making harsh choice

Business Popular Trader Joe's wine brand has bad news, making harsh choice Many businesses will tell you that nothing turned things around for them like covid did in the early 2020s. For some, the turmoil we all went through in 2020 was actually a good thing for business. Related: Struggling retail chain sounds the alarm on growing problem That tended to be the case for many health and wellness companies. Over the past few years, more people have gotten interested in taking charge of their own personal wellness. Perhaps that meant getting more active, so some companies that make personal gym equipment or workout accessories have been flying high. Consider brands like Hoka, which makes popular running sneakers, and Oura, which makes a wearable fitness ring. Some companies, however, saw covid turn things upside down for them. This included many brick and mortar businesses, which were flattened by a retreat in customers. Many mom and pop shops struggled to make it through months with little to no foot traffic. And many were gobbled up by larger corporate incumbents. Other businesses that struggled operated in the food and drink industry, particularly some in the alcohol business. Many winemakers have struggled in recent years. Shutterstock The alcohol industry is fickle At the beginning of covid, when there was little else to do, drinking rates went up around the U.S. Many liquor stores either never closed or reopened quickly, identifying demand for booze from bored customers. More closings: And some restaurants quickly followed. Many began offering cocktails to go in portable pouches. Some breweries and vineyards followed suit, offering outdoor seating and limited capacities for people to drink in the great outdoors. But interest in drinking has steadily waned since the height of the pandemic. Many Americans are taking more of an interest in their health and cutting down on alcohol consumption. This is particularly true for younger generations; about 65% of Gen Z indicated they plan on drinking less, and drinking rates among young people is down by between 40-60% over the last 20 years. Popular cheap winemaker is struggling And while there will probably always be a market for wine, particularly the expensive kind that you can impress your dinner guests with, other pockets of the industry are encountering trouble. Bronco Wine Co., the maker of the popular Trader Joe's Charles Shaw brand -- and better known as Two Buck Chuck -- is one such brand. Related: Walmart makes a major change to your delivery service The California winery announced its second round of layoffs, indicating it plans to eliminate over 140 positions. The layoffs will be across several key areas, including: 21 drivers 14 cellar operators 3 territory sales representatives Many of the layoffs will take place in its Central Valley facility in Ceres, Calif. and are slotted to happen by June 16, 2025. Earlier in 2025, it eliminated over 80 positions. The company has cited operational issues and squeezed profits as a reason for the layoffs. "This decision was not made lightly … While these changes are difficult, they are also necessary. We stand at a critical juncture – not just responding to current challenges, but making bold moves to build a resilient, more focused organization for the future," Bronco CEO Dom Engels said in a statement. Earlier in 2025, the company said a "major reorganization in operations and workforce" was necessary to continue. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc. This story was originally published May 6, 2025 at 6:33 AM.

Trader Joe's 'Two Buck Chuck' Winemaker Announces More Mass Layoffs
Trader Joe's 'Two Buck Chuck' Winemaker Announces More Mass Layoffs

Newsweek

time01-05-2025

  • Business
  • Newsweek

Trader Joe's 'Two Buck Chuck' Winemaker Announces More Mass Layoffs

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A California winery has revealed plans to eliminate nearly 150 positions, citing shifting industry trends and ongoing economic challenges as the driving factors. The Bronco Wine Company, known for its Charles Shaw brand or "Two Buck Chuck," sold exclusively at Trader Joe's, said the move was necessary due to the "evolving dynamics of the wine industry and broader economic pressures." When contacted by Newsweek, the Bronco Wine Company said it had no comment on the layoffs beyond its initial statement. Why It Matters The U.S. wine industry is facing a number of headwinds at present, including a decline in consumption, particularly among younger drinkers. Adding to this is the potential impact of the administration's trade policies, and the prospect of rising operational costs from tariffs leading to even narrower margins for American producers. What To Know The Ceres, California-based company was founded in 1973, and has since grown into one of the country's largest wine producers, according to VinePair. Bronco Wine Co. employed around 750 people in Ceres at the start of the year, CBS reported. Earlier this month, the company submitted a Worker Adjustment and Retraining Notification (WARN) to the state of California, indicating plans to lay off 146 employees at its Bystrum Road facility in Ceres. Stock image: A case with logo for Charles Shaw wine is pictured, Lafayette, California, December 8, 2021. Stock image: A case with logo for Charles Shaw wine is pictured, Lafayette, California, December 8, 2021. Gado/Getty Images In a statement quoted by the Sacramento-based outlet KCRA 3, Bronco said that the decision was necessary "due to a significant downturn in business revenues, necessitating a major reorganization in operations and workforce." This follows Bronco's February announcement that it would be laying off 81 people at its Stanislaus County winery, bringing the total workforce reduction in 2025 to nearly 230. As quoted by CBS Sacramento at the time, the company attributed the layoffs to "challenging headwinds in the wine industry," including "shifting population demographics, consumer trends and industry headwinds, and over supply of wine grapes in the marketplace." In addition to these longer-term difficulties, the U.S. wine industry is currently grappling with the impacts of the President Donald Trump administration's trade policies, including the global, 10 percent tariff announced on April 2, as well as the higher rates on certain import partners. In March, Trump threatened to impose a 200 percent tariff on wine and champagne from the European Union, though this has not come into effect. Stock image: Rolling hills with grape vines are seen in a vineyard, Camino, California, September 14, 2024. Stock image: Rolling hills with grape vines are seen in a vineyard, Camino, California, September 14, 2024. Smith Collection/Gado/Getty Images U.S. winemakers, who spoke to NPR earlier in April, said that tariffs on imported items such as barrels, corks and bottles could raise their operational costs substantially, which they would be forced to pass on to customers. In addition, the ongoing "buy Canadian" boycott, adopted in response to Trump's tariffs and calls to turn Canada into a 51st state, has taken aim at American-made wines and resulted in further headwinds for domestic producers. According to the Wine Institute, a California-based advocacy organization, Canada had previously accounted for 35 percent of all U.S. wine exports before this protest. What People Are Saying Dom Engels, Bronco Wine Co. president and CEO, said: "This decision was not made lightly. We deeply appreciate the valuable contributions of every employee affected, and we are committed to providing support and resources to help ease the transition. While these changes are difficult, they are also necessary. We stand at a critical juncture—not just responding to current challenges, but making bold moves to build a resilient, more focused organization for the future." Bronco Wine Co., in a statement shared with Newsweek, said: "In recent months, Bronco Wine Co. has taken a series of intentional steps to redefine the company and strengthen its position in the U.S. wine industry. Today's announcement marks a pivotal moment for Bronco Wine Co., as it now directs its attention toward growth and long-term stability." The Wine Institute, in response to Trump's April 2 tariff announcements, said: "Today's announcement of new tariffs will only make it harder for American wineries to regain access to Canada, by far our most important export market. In early March, Canada cleared its shelves of all U.S. wine and continues to block its sale. As this dispute drags on, it is creating economic instability at a time when the industry is already under significant pressure." What Happens Next The layoffs are set to go into effect on June 16, KCRA reports.

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