Introduction and Point of View Wine industry is highly developed in the whole world. Some countries are more famous for their wines, others are less, still, there are wineries in each country which rejoice the hearts of its citizens. The E. & J. Gallo Winery is the family-owned winery which is considered to be one of the biggest in the whole world in the relation to family business and largest exporter of wine in California. The industry of viniculture is rather competitive and full of hazards, but more and more people want to be involved in this business as it is rather profitable and prestigious. It is possible to divide the customers of wine on two big categories, those who prefer high quality products and those who but cheap wines. Moreover, there are many issues which influence the industry and make the wine brands change its strategy. To understand the situation on the wine market, the following issues should be considered, competition, production, quality, marketing, distribution, business planning, merchandising, and financial analysis. E. & J. Gallo Winery is a company which produces both expensive high quality products and cheap ones. This strategy may be confusing for many people as having created a positive image of high quality brand wines, the company could have already refused from producing low-quality products, but it continues to produce the skid-row wines. What is the reason? The main purpose of this article is to research the wine industry, consider its issues and offer some recommendations about the further strategy the company should use. Identification of Issues There a number of issues which are significant in the winery and which influence the whole industry and market. Production, product quality, marketing, distribution, business planning, merchandising, and financial analysis are the issues which may be related to the E. & J. Gallo Winery and the industry. Here is a thorough analysis of each of the issues in the relation to E. & J. Gallo Winery. This family owned business produces more than 60 different wine brands of different taste and specifics. The production of wines of the E. & J. Gallo Winery is highly related to the wine quality. It is impossible to produce a good wine on cheap recourses. The quality of wine has a direct dependence on it. Some companies have chosen the way of gaining profit by means of producing low-quality and cheap wine. There is nothing to blame them for as their wines are directed at specific layer of population, on people who cannot afford to buy an expensive bottle of wine and enjoy its taste (Armstrong, Green and Strickland C-449). E. & J. Gallo Winery produces three main categories of wines, red, white, and sparkling & rose. Distribution is the issue which is really important for each company. E. & J. Gallo Winery begins its history with cheap wine and the distribution into the neighborhoods. Now, the company has entered the international market and Gallo wines may be seen on the holiday tables almost in each country of the world (Armstrong, Green and Strickland C-451). The supermarkets and restaurants order the band wines from the official representatives of the company all over the world. Moreover the Internet technologies make it possible to