Tax hike would put Chuck over its famed Two Bucks

The governor is proposing to increase California's wine levy

By Jerry Hirsch
LA Times
January 21, 2009

Is this the end of Two Buck Chuck?

A proposal to raise the state tax on wine to a level more than six times higher to help close California's giant budget deficit would kill the $1.99 price for Charles Shaw wine, said Fred Franzia, who created the famous label sold by the Trader Joe's grocery chain.

Charles Shaw, of course, is the formal name for the California wines sold since 2002 that are now widely known by their nickname Two Buck Chuck.

The proposal by Gov. Arnold Schwarzenegger would raise the tax on wine to 29.6 cents for a 750-milliliter bottle from 4 cents.

"It's like shooting Charles Shaw in the eye," said Franzia, chief executive of Bronco Wine Co., which owns the brand. The profit margin is already so low we will have to raise the price."

(More here.)