Robert Mondavi and the Wine Term Paper

In the 1990s Mondavi explored other joint venture options including one with the Italian vintner Luce della Vite. Their joint La Famiglia di Robert Mondavi uses Italian grape varietals grown in California to produce a line of high-end wines. More recently, Mondavi acquired Arrowood, marking the firm's first entry into Sonoma wines. Mondavi owns and leases a total of almost 10,000 acres of vineyard land in California. Their joint ventures in Italy, Chile, and California add another 1600 acres and account for about 7% of their total grape supplies (Roberto p. 7). Most of Mondavi's grapes are sourced internally, and many growers receive long-term contracts to ensure consistency and quality (Roberto p. 7). Currently the six California wineries that are operated by the Mondavi firm include the following. The Robert Mondavi Winery (RMW) offers their flagship wines, which are produced at the original to Kalon winery in Oakville, California. RMW wines are the firm's third-highest selling brand. A recent $28 million investment in the renovation of the to Kalon winery ensured an influx of new visitors for tours, tastings, and cultural events to stimulate awareness and interest in fine wines. Robert Mondavi also developed a line of competitively-priced wines in the super-premium category in response to consumer and retailer demands. The brand is called Robert Mondavi Coastal Private Selection, and is currently their second highest-selling brand. The firm's top-seller remains the Woodbridge line, a popular premium label started in 1979 and accounting for 76% of Mondavi's case volume and 57% of Mondavi total revenues as of FY2001. The Robert Mondavi name has been invoked both for the Coastal Private Selection and for the Woodbridge line to "enhance the image" of those brands (Roberto p. 8).

Mondavi also acquired several California brands including Byron, specializing in ultra-premium and luxury wines; Arrowood; and the La Famiglia di Robert Mondavi.Additionally, the Opus One brand is Mondavi's prestige line, which produces 30,000 cases per year and retailing at about $140 per bottle. Just as the Mondavi name enhances the image of the Woodbridge label, the Opus One joint venture has enhanced the overall prestige of Mondavi's name. Robert Mondavi has entered into four more joint ventures in the high-end price category since 2002 including three Italian vines and one luxury Chilean wine called Sena.

One of the outstanding features of the Mondavi firm has always been its innovativeness not only in wine selections and brands but also in technology. The technology-friendly Tim Mondavi has introduced state-of -- the art winemaking equipment but at the same time uses old-school materials like oak barrels. In fact, because the Woodbridge line is also aged in oak barrels the brand stands out among its competition in the popular premium category (Roberto p. 8). Perhaps Mondavi's weak point is the Coastal Private Selection, which is most directly threatened by the Australian imports and focused California rival wineries. Robert Mondavi Coastal Private Selection is not the leader in the lower-end of the super premium wines.

Robert Mondavi wines are distributed by over 100 independent companies as well as by importers abroad. One wholesaler accounts for almost 30% of Robert Mondavi's total sales, and the top fifteen of the firm's distributors account for two-thirds of their revenues (Roberto p. 9). One-tenth of Mondavi's total case volume is sold through Costco (Roberto p. 9). Based on discontent voiced by distributors, Mondavi decided to restructure their firm, dividing it into three independently-run business units: RMW/Coastal; Woodbridge; and Joint Venture/small winery. The restructuring enabled sales forces to be more specialized. Each of the three Mondavi units runs its own marketing and advertising.....