Two Buck Chuck was a bankrupt winery’s castoff — and became America’s $1.99 wine

In 1995, Charles Shaw Winery filed for bankruptcy. The Napa Valley winemaker had produced a modest wine but mismanaged its finances. The brand and its name — 'Charles Shaw' — were put up for auction. Bronco Wine Company, a large bulk wine producer founded by Fred Franzia (of the Franzia family of box-wine fame), bought the trademark for $27,000.

For years, Bronco did little with the brand. The wine was produced and bottled, but sold in small quantities. In 2002, Bronco struck a deal with Trader Joe's, the quirky California grocery chain. The idea: sell a decent table wine for $1.99 a bottle. The wine was unpretentious, the label was simple, and the price was below what a bottle of water cost at the same store.

The product had no advertising budget. Its name — 'Charles Shaw' — was unknown to consumers, who nicknamed it 'Two Buck Chuck.' The wine became a phenomenon through word of mouth. Customers lined up to buy cases. The novelty of a $1.99 wine that was actually drinkable turned it into a cultural artifact. By 2004, it was selling millions of bottles per year in California alone.

Between 2002 and 2013, Two Buck Chuck sold more than 800 million bottles. It expanded to Trader Joe's locations across the US. The brand that was bought for $27,000 at a bankruptcy auction had become one of the best-selling wines in American history.