Moreover, if the wine tasted good for the price point, Gallo probably assumed that at least some merlot and syrah were blended in (small-percentage additions such as these are standard practice, and there are legal limits that vary by country of origin).
The company assumed it would have to offer a rate 0.3-0.5 percentage point higher than government bonds when it went to the market last month, said Masatoshi Hoshi, its head of treasury and accounting.