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Walmart and Target are trying to capitalize on Trader Joe's 'Two-Buck Chuck' success | CNN Business (1)

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Walmart, Kroger, and Target are rolling out premium wines for cheap. They’re trying to copy Trader Joe’s success with “Two-Buck Chuck” and capitalize on America’s love affair with wine.

The big-box players have recently tried a variety of tactics — new brands, partnerships, and delivery choices — to prove their wine bona fides and attract the growing number of Americans replacing beer with wines and spirits.

In May, Walmart introduced 10 private-label wines for $11 a bottle. The line, “Winemakers Selection,” featured rosés and vinos from Italy, France, and California. Nichole Simpson, Walmart’s senior wine buyer, told USA Today that they “drink like a $30 to $40 bottle.”

Winemakers Selection is a part of Walmart’s attempt to upscale its brands in stores and online. The label is targeted at middle-income shoppers thinking about spending on a bottle of vino. The design doesn’t bear Walmart’s logo, making it more acceptable to wine connoisseurs who want to trade down.

Walmart and Target are trying to capitalize on Trader Joe's 'Two-Buck Chuck' success | CNN Business (17)

"It's been a real winner for us," Walmart's chief merchandising officer said of the new Winemakers Selection line.

“Consumers want to indulge within their means,” said Catherine Lang, an analyst at Kantar Consulting who has researched discount grocers and convenient stores like 7-Eleven expanding their wine selections. “The challenge and the opportunity for brands in wine is the ability to convey quality with their private label.”

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The wine play is working for Walmart so far. The company has gotten a bump in sales from Winemakers Selection and plans to release 11 more wines in the spring: “It’s been a real winner for us,” Steve Bratspies, Walmart’s chief merchandising officer, said last week.

Quality wine for low prices fits into a broader strategy at Target, too. The company has renewed its focus on selling its own brands to bolster its chic ‘Tar-zhay’ image.

Target introduced its $5 California Roots brand last year and added California Roots Rosé earlier this year. In a separate move, Target became a retail partner for Yes Way Rosé, a brand that caught fire on Instagram and goes for $12.99 a bottle at stores.

Walmart and Target are trying to capitalize on Trader Joe's 'Two-Buck Chuck' success | CNN Business (18)

$5 California Roots at Target.

Target said alcohol was the fastest-growing unit in its food and drinks division last year. To meet increasing demand, the company has been gaining more liquor licenses and expanding alcohol aisles in stores. It aims to offer alcohol in 80% of its stores by the end of 2018.

For Kroger, wine is also a “growth category.” Kroger sells 80 wine lines, including exclusive brands like Storyteller for $2.99 to $29.99. Last week, Bloomberg reported that it was piloting a wine home-delivery service in a handful of markets.

Kroger won’t sell the wines under its own label, but it’s trying to tap into an expanding online alcohol delivery market. Online beer, liquor, and wine sales grew 33% last year, according to analytics firm Slice Intelligence.

These big-box players have taken their wine cues from Costco, Lidl and Trader Joe’s, rivals that discovered years ago that selling cheap vino could be another way to win shoppers.

Costco sells $2 billion a year worth of wine at its warehouses. There are blogs dedicated to ratings, reviews, and deals on malbecs, merlots, and cabernets at Costco.

Costco has started offering more wine under its popular private label, Kirkland Signature, over the past few years to gain higher profit margins off the sales.

“The wine and spirits thing has caught us off guard in a positive way,” Costco’s chief financial officer Richard Galanti said last year of the response to Kirkland Signature wines.

Walmart and Target are trying to capitalize on Trader Joe's 'Two-Buck Chuck' success | CNN Business (19)

Trader Joe's "Two-Buck Chuck."

Yet Trader Joe’s has set the retail standard for bargain wines with its Charles Shaw private-label brand, known as “Two-Buck Chuck.” Trader Joe’s struck gold with the brand, claiming awards at wine shows and earning a cult-like following among shoppers.

“Trader Joe’s showed that if you make a decent wine and you price it well, it will be a draw,” said Victor Martino, president of Third Wave Strategies, a California food and grocery consulting firm. “It’s a phenomenal seller.”

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FAQs

Why is it called 2 Buck Chuck? ›

Overview. Charles Shaw wines were introduced at Trader Joe's grocery stores in California in 2002 at a price of US$1.99 per bottle, earning the wines the nickname "Two Buck Chuck", and eventually sold 800 million bottles between 2002 and 2013.

How much is Charles Shaw wine? ›

After all, each of the grocer's line of signature Charles Shaw wines sells for just $3.99. Though a bit of a misnomer now, the wine's low costs have earned it the nickname "Two-Buck Chuck," as it used to retail for $1.99. But despite the spike in prices, the wine continues to be popular with thrifty wine shoppers.

Is Charles Shaw owned by Trader Joe's? ›

Trader Joe's has sold nearly a billion bottles of its renowned Charles Shaw wine since 2002, yet the man who shares a name with the brand hasn't earned a dime from it.

Who makes Trader Joe's wines? ›

Many of Trader Joe's wines are made by Bronco wine in California. Now, Bronco wine, a family-owned company, is not one of those snobbish vintners, even though they are one of the best at what they do. They focus on selling good wine at affordable prices, and they own over 120 brands in 90 countries.

Why is Three Buck Chuck so cheap? ›

It is simply a bargain-priced wine made by Charles Shaw Winery. The wine took the country by storm when it was introduced in 2002 in Trader Joe's stores in California, selling for $1.99 a bottle. Shipping costs push that up to $2.99 or more on the East Coast, so make that Three Buck Chuck.

Who Started Two Buck Chuck? ›

Fred Franzia, the Napa Valley kingpin perhaps best known for creating the seemingly inflation-proof bargain wine known as Two Buck Chuck, died September 13 at age 79, the San Francisco Chronicle reported Tuesday.

Is 2 Buck Chuck still 2 bucks? ›

Trader Joe's, however, never really repeated Two Buck Chuck's success, even though much of the wine it sells today is private label. Neither has Bronco. A Two Buck Chuck-like brand aimed at restaurants, launched about a decade ago, came and went. But almost 20 years later, Two Buck Chuck is still here.

How much is 2 Buck Chuck now? ›

Walk into almost any Trader Joe's store and you'll spot a behemoth display of Charles Shaw wine — or, as it's more affectionately known, “Two Buck Chuck.” Priced at a mere $1.99 to $3.79 per bottle, this magical ether is cheaper than most bottled water.

How many glasses of wine do you get from a bottle? ›

Standard Bottle – A standard bottle of wine is 750ml, or 25 fluid ounces, and will net you about 5 glasses of wine.

Who owns Trader Joe's? ›

Does Trader Joe's have their own winery? ›

Trader Joe's has it's own private-label wine brands. Most of these brands (like their famous Charles Shaw brand, which makes the legendary “Two Buck Chuck”) are made by a family-run company called Bronco Wine, in California.

Why did Trader Joe's wine store close? ›

"After 15 years of operating an underperforming wine shop and planning for a busy holiday grocery season, we decided that the best way forward is to support our Union Square grocery operations using the space previously occupied by the wine shop.

Is alcohol cheaper at Trader Joe's? ›

Trader Joe's liquor is marginally cheaper than other grocery stores, ranging between $10 – $30 for most hard liquor. Their vodka will only run you about $10, and their Gin will be about $12.

Why is Trader Joe's liquor so cheap? ›

Most of the company's vineyards are located in California's San Joaquin Valley, where the cost of land is much cheaper than the more prestigious Sonoma or Napa Valley, according to George M.

Where does Trader Joe's get their wine? ›

Most of the company's vineyards are located in California's San Joaquin Valley, where the cost of land is much cheaper than the more prestigious Sonoma or Napa Valley, according to George M.

Who makes Trader Joe's cabernet? ›

Made for us by one of our favorite winery partners, this Alexander Valley Cab is intensely fruit-forward, before settling into a soft, silky finish.

Does Trader Joe's sell cheap wine? ›

Trader Joe's is known for fairly cheap prices, but arguably its most famously priced item is Charles Shaw wine, otherwise known as Two Buck Chuck.

How much alcohol is in Trader Joe's wine? ›

A top pick for Trader Joe's shoppers, this exclusive wine is priced at only $6.99. Yes, just $6.99! Combining flavors of red and black cherries, cranberry, and dark plums, this medium-bodied wine (which has a 14.5-percent ABV) is one of the most well-balanced wines you'll get for under $10, at TJ's or otherwise.

Is Charles Shaw wine organic? ›

Officially the big wine on campus, Shaw Red Blend made with Organic Grapes is delectably jammy and fruit-forward—a dependably delicious overachiever that serves spectacularly well at barbecues, dinner parties, or even on its own as a way to wind down after work.

Does Two Buck Chuck still exist? ›

“Two-Buck Chuck” has returned to the shelves of Trader Joe's at the $1.99 price that inspired the nickname. Chuck, aka Charles Shaw, actually never left — but the price for the wines, available in both red and white, had risen to $2.99 over the years.

Does Two Buck Chuck have arsenic in it? ›

There's been a lot of buzz around the story that some inexpensive California wines, including a Charles Shaw (aka two-buck Chuck) white Zinfandel sold at Trader Joe's, have been found to contain traces of arsenic. The wines were tested by a commercial laboratory called BeverageGrades.

Is Charles Shaw vegan? ›

"We are pleased to let you know that all of our Charles Shaw wines are, in fact, vegan!" "In response, there are no animal derived ingredients, fining agents or sources used in the processing/production of this product.

Does Trader Joe's in Delaware sell wine? ›

Items produced under the store's own name are also very popular. Some have contended that Delaware's restrictions on who can sell liquor kept Trader Joe's from expanding in the state. At its Concord Pike location, Trader Joe's can't offer its collection of wine, beer and spirits.

Is it OK to drink half a bottle of wine a night? ›

So yes, it is harmful. Recommendations suggest a glass per day (and that is around 125 – 150 mL max), and half a bottle double that quantity.

Can a bottle of wine get you drunk? ›

Can you get drunk on a bottle of wine? A bottle of wine will get the average person drunk. Most wine bottles contain about 5 standard glasses of wine. The limit before most people start feeling alcohol impairment is 2 glasses of wine for women and 3 glasses of wine for men.

Can you drink a full bottle of wine? ›

While it's understandable to occasionally drink a full bottle of wine, it's a good idea to not consume a large amount of alcohol at once. Instead, it's recommended to spread a few glasses of wine throughout the week to reap all of its health benefits.

Is Aldi's owned by Trader Joe's? ›

It's important to fact-check upfront that Aldi does not own Trader Joe's. In turn, Trader Joe's doesn't own Aldi either. The companies aren't connected by joint ownership, nor do they exist under the same corporate leaders.

How much does the CEO of Trader Joe's make? ›

$372,027. The estimated total pay for a Chief Executive Officer at Trader Joe's is $372,027 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. The estimated base pay is $183,236 per year.

Did Amazon buy Trader Joe's? ›

Trader Joe's gets owned by Aldi Nord, not Amazon.

Is Rose dry or sweet? ›

Rosé wines can be anywhere from syrupy sweet to bone dry. Older rosé varieties produced in France and Spain will generally be quite dry, while newer rosé wines will often have more sweetness.

Who makes Trader Joe's pinot noir? ›

Trader Joe's Grand Reserve Russian River Pinot Noir 2020 is an exclusive wine of $12.99 Trader Joe's. This Pinot was produced for Trader Joe's by MWK Wine Consulting, a private label winemaker. This wine is 100% Pinot Noir, which is nice to see when Petite Sirah and Syrah are added to give Pinot Noir some muscle.

How long does it take to bottle homemade wine? ›

You can expect to be bottling your wine in about 8 to 12 weeks from the time you started the batch, and also anticipate needing to bottle age the wine at least 3 to 4 months, and sometimes up to a year, depending on the fruit.

How many states have Trader Joe's? ›

Trader Joe's has over 500 stores across 42 states and is regularly opening new locations.

Does Hawaii have Trader Joe's? ›

Trader Joe's is not coming to Hawaii, according to an isle retail expert who told a crowded room of commercial real estate industry leaders at the NAIOP Hawaii mid-year market forecast Friday not to expect the popular retailer in the Islands anytime soon.

How many Trader Joe's stores are there in the US? ›

The chain has more than 530 locations across the U.S., with 10,000 employees and an estimated 2020 revenue of $16.5 billion, according to Supermarket News and U.K. research firm IGD.

Is beer cheaper at Costco? ›

Costco offers great deals on hard liquor and packs of beer. They have a wide-ranging selection and the unit prices are unbeatable compared to the grocery store. This is where we stock up during the holidays when we're invited to tons of events and parties. They also have seasonal alcohol varieties as well.

What alcohol is Costco? ›

You can stock your entire bar with Kirkland brand booze.

Now, you can buy nearly every spirit under Costco's signature in-house label, including American and French vodka, Scotch, whiskey, bourbon, rum, tequila, and gin.

Is Costco alcohol cheaper? ›

Costco Alcohol Is Cheaper Than Other Brands

If you buy Costco's Kirkland Signature

Kirkland Signature
What Is Kirkland Signature? Kirkland Signature is Costco's trademark private-label brand. The name was inspired by Costco's original headquarters in Kirkland, Washington. Costco only uses the Kirkland Signature brand on merchandise sold through Costco's website or in Costco warehouses.
https://www.shopfood.com › grocery-stores › kirkland-signature
label, the Costco alcohol prices are lower than other brands. Sometimes the price can reach nearly half the price of other well-known brands. Not only that but Costco is known for its low prices.

What type of alcohol does Trader Joe's sell? ›

Trader Joe's sells vodka, tequila, bourbon, whiskey, rum, and most other common types of liquor. In many, but not all cases, the products sold will be labeled under the Trader Joe's private label, but as with their other house-brand items, will be from reputable manufacturers.

Is boxed wine real wine? ›

It's exactly what the name says it is - Box wine is wine in a box. Well, technically it's wine in a bag-in-box (BIB). Wine is contained in a plastic bladder typically with an air-tight valve emerging from a protective corrugated fiberboard box.

Who makes Trader Joe's tequila? ›

The manufacturer of Trader Joe's Tequila Reposado is the company El Viejito from Guadalajara in Jalisco, Mexico. Under their brand label, El Viejito tequilas typically rate in the mid to high 80s on tequila review sites.

Who makes Trader Joes beer? ›

These are brewed by Gordon Biersch Brewing Company in San Jose, Calif. I've got to say, this is a solid line of beers. Gordon Biersch knows their stuff in this arena (co-founder Dan Gordon is a Weihenstephan grad), and these beers show it. The bock, vienna lager and both Czech-style lagers were authentic and delicious.

How old is Trader Joe's? ›

In 1958, Joe Coulombe took over a small chain of Pronto Markets convenience stores around the Los Angeles, California, area. After seeing changes in demographics, he opened the first Trader Joe's in 1967 in nearby Pasadena. In 1972, he introduced granola, the first private label product. 2.

Does Trader Joe's carry beer? ›

Trader Joe does sell beer in states where alcohol sales are allowed. The store has a wide selection of beers in different styles at low prices. While some are its own house brands, others are regular beer brands.

How many calories are in a bottle of Charles Shaw Cabernet Sauvignon? ›

There are 119 calories in 1 glass (5 oz) of Trader Joe's Charles Shaw Cabernet Sauvignon. * The % Daily Value (DV) tells you how much a nutrient in a serving of food contributes to a daily diet.
...
Edit this item.
Last updated09 Sep 15 11:28 PM
SourceFatSecret Platform API
9 Sept 2015

Where is the Charles Shaw Winery? ›

Charles Shaw Wines are made by the Bronco Wine Company based in Ceres, California, near Modesto.

What is Trader Joe Two Buck Chuck? ›

Billy Farrell/BFA/REX/Shutterstock. Trader Joe's is known for fairly cheap prices, but arguably its most famously priced item is Charles Shaw wine, otherwise known as Two Buck Chuck. While not everyone may know the secrets of Trader Joe's stores themselves, they definitely know this product.

Who owns Trader Joe's? ›

How many calories are in Trader Joe's wine? ›

Example: A 5 oz glass of wine with 12% alcohol will have 96 calories.

How many carbs are in Charles Shaw Cabernet Sauvignon? ›

Keto & Health Insights for Trader Joe's Charles Shaw Cabernet Sauvignon. Net Carbs are 3% of calories per serving, at 3g per serving. This meal falls within the range for standard keto diet guidelines (at or under 25g of net carbs).

How much alcohol is in Trader Joe's wine? ›

A top pick for Trader Joe's shoppers, this exclusive wine is priced at only $6.99. Yes, just $6.99! Combining flavors of red and black cherries, cranberry, and dark plums, this medium-bodied wine (which has a 14.5-percent ABV) is one of the most well-balanced wines you'll get for under $10, at TJ's or otherwise.

Does Charles Shaw have pinot noir? ›

Smooth, fruity, and artfully balanced, Shaw Pinot Noir made with Organic Grapes receives top marks for its approachable profile of ripe berries and light, toasty oak.

Is Charles Shaw wine organic? ›

Officially the big wine on campus, Shaw Red Blend made with Organic Grapes is delectably jammy and fruit-forward—a dependably delicious overachiever that serves spectacularly well at barbecues, dinner parties, or even on its own as a way to wind down after work.

Why do you want to work at Trader Joe's question? ›

You are motivated, eager to learn, you love to work hard and belong to the team. You have attention to detail and passion for an excellent customer service. Since both managers and customers at Trader Joe's value this attitude, you see the job as a perfect match.

Is Charles Shaw vegan? ›

"We are pleased to let you know that all of our Charles Shaw wines are, in fact, vegan!" "In response, there are no animal derived ingredients, fining agents or sources used in the processing/production of this product.

Does Trader Joe's have their own winery? ›

Trader Joe's has it's own private-label wine brands. Most of these brands (like their famous Charles Shaw brand, which makes the legendary “Two Buck Chuck”) are made by a family-run company called Bronco Wine, in California.

Is Aldi's owned by Trader Joe's? ›

It's important to fact-check upfront that Aldi does not own Trader Joe's. In turn, Trader Joe's doesn't own Aldi either. The companies aren't connected by joint ownership, nor do they exist under the same corporate leaders.

How much does the CEO of Trader Joe's make? ›

$372,027. The estimated total pay for a Chief Executive Officer at Trader Joe's is $372,027 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. The estimated base pay is $183,236 per year.

Did Amazon buy Trader Joe's? ›

Trader Joe's gets owned by Aldi Nord, not Amazon.

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