California and the creation of a modern wine industry: 1860-1919
The very different factor endowments of the New World to those found in Europe implied that the wine industry developed its own style and characteristics. In California production was located at a considerable distance from the main markets on the East Coast, and trade was initially controlled by the East Coast merchants, who imported wines from Europe and purchased California wine in bulk, selling it under their own brands. The problems of marketing and the fight against fraud and adulteration, produced a struggle between the wine-makers and San Francisco’s merchants for the control of the industry, and the creation of the world’s largest, vertically integrated wine company, the California Wine Association.
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