The New Yorker magazine had something about Fred Franzia and Bronco wines a few weeks back. I think he has the 4th largest U.S. wine marketer IIRC.

Part of his strategy is to buy up wine labels (Charles Shaw being one of them) and push out new wines using these labels when he can get a cheap bulk purchase. One of the stories is how he waited and saw prices for bulk wine drop from the mid teens (USD/gallon) down to under $1, which is his price point.

He also has a significant amount of acreage under vines (IIRC, 2nd after the Gallo family, who he is a cousin of) and he goes for high yield to keep costs down. The California Central Valley offers such growing conditions and he keeps away from Napa/Sonoma (has a grudge against the former).

Given the sharp drop in shipping costs, it's not inconceivable he can get the wine tankered to the U.S. and bottled/sold there and still make money (most of the costs is tax/duty in most countries). Not much different than bottled water from Italy and France. In the New Yorker article, he was waiting to generate cash (abhors debt) to buy a bottle-making plant to further reduce this cost.