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Why is Trader Joe’s Wine Cheaper Than Bottled Water?

More than one secret lurks in the aisles of Trader Joe’s, the trendy, organic-loving grocery franchise that was spawned from a chain of convenience stores in the 1950s. Shoppers have tried to guess whether their store brand mac and cheese is actually made by a major food label going incognito.

(Verdict: No one’s really sure, but the mac does taste a lot like Annie’s.) Managers are called “captains” instead of managers because founder Joe Coulombe really liked the oceanic motif.

But the biggest mystery of Trader Joe’s may be in their liquor section, where their store-endorsed line of Charles Shaw wine sells for as little as $1.99 a bottle in some markets.

How can wine cost as much or less than an equal quantity of bottled water? More than just getting slightly tipsy, will you go blind? Will it work in your car’s carburetor?

To understand how Charles Shaw sells wine for pocket change, it helps to know who Charles Shaw is—and why he has absolutely nothing to do with this story.

According to Thrillist, Shaw used his wife’s money to buy 20 acres of Napa Valley land to start a winery in 1974. Business was brisk, and Shaw knew his high-end wine from grape juice. The Charles Shaw label came to represent quality among wine aficionados, and his business grew to include 115 acres by the late 1980s.

Unfortunately, Shaw’s business acumen was not always as refined as his palate. A mistake…

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