Robert Mondavi Corp. Analysis
I. Summary
? Company founded in 1966 by Robert Mondavi in Napa Valley, California
? Company vision to make California a recognized wine producing region alongside great winemaking regions of Europe
? Major focus on technology and wine growing techniques
? Production of premium to super ultra premium wines
? Mondavi focuses on personal sales, wine competitions, and lavish parties to promote the wines rather than conventional advertising
? Mondavi has a portfolio of premium to super ultra premium wines to fill various price points and niches in domestic wine market
? 1981 Opus One joint venture with Baron Philippe de Rothschild
? Through 1980's and 1990's, Mondavi acquires many wineries and vineyards throughout California
? Mondavi develops national following
? Phylloxera (vine killing insects) begin to infiltrate California vineyards
? 1993, Mondavi, in need of capital due to extensive acquisition expenditures in previous decade plus the replanting costs, issues public shares
? In the mid-1990's, Mondavi begins 3 joint ventures with a Chilean, an Italian, and French firms
? Wine production in California accounts for more than 70% of wine consumed in America
? Wines in America are sold through a three-tier distribution
? 100's of wineries emerge in California,
? 90% of Mondavi's revenues generated domestically
II. Case Profile
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