History Mogen David

1 history

1.1 chicago winery
1.2 acquisition coke-new york
1.3 acquisition wine group

history

founded months before repeal of prohibition max cohen , henry markus in chicago, california wine company bottled medicinal , sacramental wines, changing name wine corporation of america in 1941 when began making wine concord grape juice (or concentrate) shipped growers in new york, pennsylvania, ohio , later michigan.

chicago winery

following world war ii company purchased 50,000 square foot (4,600 m) building @ 3737 south sacramento ave in chicago s brighton park neighborhood converted 1 of largest wineries in midwestern united states. entire winery allocated single product, mogen david, kosher wine marketed passover seder turned out popular year-round general public. annual production of mogen david 75,000 gallons (280,000 l; 62,000 imp gal) in 1946. wine corporation of america began advertising mogen david nationally in 1947; 1950 s advertising budget mogen david fourth or fifth largest wines. max cohen, company president , founder, noted 98 percent of mogen david s customers not jewish.

annual production of mogen david increased more 3,000,000 gallons (11,000,000 l; 2,500,000 imp gal) of wine in 1949 , 5,000,000 gallons (19,000,000 l; 4,200,000 imp gal) 1953, , in year wine corporation of america took name of important product, becoming mogen david wine corporation.

in 1955 mogen david announced purchase of new plant facilities @ 3700 south kedzie ave, 2,000 feet (610 m) main plant on sacramento ave, designed triple capacity , enable production of 2 additional wines. company launched new line of wines under different brand name, key, in 1957. marketing campaign unsuccessful , line dropped after 3 years.

in 1960s, concord wine still biggest seller in mogen david line, along rosé, blackberry wine, cherry wine , dry red wine.

company founder , chairman max cohen announced resignation on 8 january 1962, citing friction brother-in-law, henry a. markus president of company. cohen sold of stock markus, saying no longer connected firm , have no interest in it.

the sale of controlling interest in mogen david richard t. schofield of westfield, new york announced on 9 may 1963, schofield taking on president of company , markus appointed chairman. operations moved westfield new york in 1967; mogen david s westfield winery closer vineyards in northeast grow concord grapes wines, chicago plants remained open.

by 1968, mogen david producing dozen different wines , 2 kinds of champagne. company broke away conventional mogen david line introduction of md 20/20 brand of flavored fortified wines received younger consumers, college students. md 20/20 line included unusual flavors such pink grapefruit, wild berry, , hawaiian blue.

acquisition coke-new york

in 1970 coca-cola bottling company of new york largest soft drink bottler in world, having merged coca-cola bottling company of new haven (acquired in 1969) growth prospects limited franchise boundaries. when coke-new york approached investment banking firm let them know mogen david sale, saw opportunity become major competitor in new industry (mogen david sixth largest winery , largest concord grape wine producer in country) , pick national sales , distribution network. coke-new york acquired mogen david on 1 november 1970 paying $16,750,000 in cash. j. myron mike bay officer in both companies: president of mogen david vp of coke-new york.

by 1972 mogen david producing 27,000 gallons (100,000 l; 22,000 imp gal) day in westfield, ny , 80,000 gallons (300,000 l; 67,000 imp gal) day 2 plants in chicago, estimated annual output of 13,000,000 gallons (49,000,000 l; 11,000,000 imp gal). mogen david company introduced pop wine product line, cold bear (concord) , black bear (blackberry), leading overall growth in sales of 32 percent 1972. mogen david had staff of on 45 salesmen. mogen david wines , tribuno vermouths marketed nationally through on 300 independent distributors in 1972, in order strengthen market position, new york coca-cola began consolidating tribuno , mogen david distribution networks.

the jug line of strawberry , apple pop wines, packaged in country-style brown , white jugs, introduced in 1973. mogen david had fourth largest winery , third largest advertising budget in wine industry in 1973

with 1973 acquisitions of tribuno wines (previously vermouth industries of america) , later established california winery franzia, coke-new york was, in all, third largest wine producer. franzia shipped wine, grape concentrates , brandy in bulk mogen david winery in westfield, new york, use in mogen david products.

jerome w. jerry alder joined mogen david president , coo in september 1976; former president mike bay moved new position of chairman, , continued mogen david s ceo. in 1977, company s administrative , marketing offices moved original winery @ 3737 south sacramento ave, , space in new building @ 444 michigan ave in downtown chicago.

a study of wine marketing in 1980 found mogen david consumers apparently had strongest brand loyalty in varietal table wine category.

acquisition wine group

discussions between coca-cola company , coca-cola bottling company of new york possible acquisition of latter began in 1974, little effect.

when merger discussions resumed in 1980, coca-cola company had entered alcoholic beverage market; wine spectrum subsidiary consisting of wineries in california , new york. part of proposed merger, coca-cola company agreed sell wine business of coke-new york partnership formed first boston , top-level managers of new york bottler s wine business. coke-new york divested of 3 wineries, bought in 1981 wine group, limited partnership headed arthur a. ciocca, avoid buyout involving third party. wine group fifth largest wine producer nationally (just behind coca-cola wine spectrum) 1981 sales of 9 million cases, same year before.

in 1998, 1.5 million adults drinking mogen david, putting ahead of chief competitor manischewitz. 2005, manischewitz again dominant more half of kosher wine sales, mogen david second 33 percent of market.