The Rise and Fall of Coca Cola's Wine Ambition

Back in the 1970s, Coca Cola surprised many by entering the wine industry, despite being primarily known for its soft drinks and non-alcoholic beverages. In 1977, the company made its first move into the wine business with the purchase of Taylor Wines of New York, creating a subsidiary known as the Wine Spectrum that included Taylor, Sterling Vineyards, and Monterey Vineyard. This represented a bold new direction for the company, and it was an overnight success, until it wasn't.

The wine industry seemed like a natural fit for Coca Cola, offering an opportunity for growth and diversification, with wine sales on the rise and experts predicting continued growth in the years to come. While some believed that Coca Cola was straying too far from its core business, others saw the move as a sign of the company's willingness to take risks and explore new opportunities.

Coca Cola's wine venture was part of a larger trend in the 1970s, with large companies buying up smaller wine producers and distributors. Heublein and International Telephone and Telegraph also entered the wine business around this time. Some experts were skeptical of Coca Cola's ability to succeed in the wine industry due to its lack of experience and focus on mass-market products. Some even joked that Coca Cola's idea of a good wine was "one that tasted like Coke."

While owning Wine Spectrum, Coca Cola experimented with various marketing strategies, such as sponsoring the America's Cup sailing race and launching a "Wine of the Month" program. With the purchase of Wine Spectrum, Coca Cola had a chance to expand into the wine industry and capitalize on the growing popularity of wine among American consumers. Although Wine Spectrum was a relatively small operation at the time, producing only 6,000 cases of wine per year, Coca Cola believed that it could increase production and establish a foothold in the market. The company invested heavily in Wine Spectrum, making several changes to the business to expand its reach and boost production. The most notable of these changes was the construction of a state-of-the-art wine-making facility in Napa Valley, California, capable of producing up to 200,000 cases of wine annually.

However, despite this investment, Coca Cola ultimately decided to sell Wine Spectrum to Seagram & Sons in 1982 for $200 million.

The decision to sell has been the subject of much speculation and gossip over the years. Some have suggested that the sale was driven by concerns about the company's reputation and image, as well as concerns about the complexity of state-by-state alcohol regulations in the United States. Others have suggested that Coca Cola's corporate culture was not a good fit for the wine industry, or that the sale was driven by internal politics and power struggles within the company. What is certain is that many Coca Cola executives quickly became disillusioned, especially when they discovered that the profit margins on wine were not as good as those on caramel color, sugar, and water."

One of the most intriguing pieces of gossip surrounding Coca Cola's brief foray into the wine industry concerns the company's attempt to create a new type of wine specifically designed to be consumed with Coca Cola. The rumor suggests that Coca Cola executives were unhappy with the fact that wine was typically consumed on its own or with a meal and believed that a wine designed to be paired with Coca Cola could help to boost sales of both products. While this rumor has never been confirmed, it is an interesting and amusing example of the lengths companies will go to find new opportunities for growth and innovation.

Coca Cola's brief venture into the wine industry was a fascinating experiment in diversification and innovation, as well as an example of the intersection between two very different industries and the challenges and opportunities that arise when they come together. Apart from its foray into the wine industry, Coca Cola also dabbled in the beer business during the 1970s. The company purchased Jos. Schlitz Brewing Company, based in Milwaukee, in 1977. However, after experiencing a drop in sales and profitability, Coca Cola sold the beer company just two years later.

Regardless of the reasons behind the sale, Coca Cola's short-lived presence in the wine industry remains an interesting and important moment in the history of both the beverage and wine industries. The rumors and gossip surrounding the sale of its wine subsidiary and the potential creation of a wine brand tailored to Coca Cola's corporate culture add a fascinating layer of intrigue to the story of one of the world's most iconic brands.