22 High End Wines of Constellation Brand

Bonny Doon Vineyards, a successful winery business based in Santa Cruz, California, has grown from selling 5,000 cases of wine a year in 1981 to 200,000 cases a year in 1999. To keep growing and be more profitable, the business must choose amongst three possible strategic directions. The first strategy is to start importing wines from Europe into the United States. The second alternative is branching into a retail outlet for unusual wines of great value, accompanied by a high level of service. Lastly, the business’ D.E.W.N could be expanded to include wines not made by the company itself but by other wineries that follow the same values and philosophy.

It depends on what types of products one plans to produce using the land. Since the winery business requires high investment in real property, it is important for one to make an investment decision on what market segment it wants to play in. Napa Valley is widely known as a good place for staring a vineyard and the land price is relatively higher than anywhere else in the US. The initial investment would affect the cost structure, which eventually drives up the price of wine. For example, budget wine consumption is very price sensitive and some competitors are trying to maintain their competitiveness with a lower price. If a company decides to produce wines from the winery in Napa Valley, soon, it would be forced to put a premium on the wine price to maintain a level of margin and ,eventually, the company would lose its competitive edge if it is a price player.

Smaller firms such as the family run operations in Europe may not be able to realize these same cost efficiencies. Furthermore, grapes represent 50 to 70% of a winemakers COGS, thus the competition for sourcing high quality grape growers is quite high. Just as Mondavi does for 75% of its purchases, most premium wine makers enter into long-term contracts with growers to not only ensure that their demand is met but also to make sure that they receive grapes that are consistent in quality.

The Calaveras wine industry has developed a reputation for high quality wines, specializing in big zins, Italian, Spanish and Rhone varietals. You can literally walk wine country here at more than two dozen wineries with tasting rooms in Murphy and Vallecito. They’re all unique and welcoming, but the following come highly recommended.

CCU had also assumed responsibility for the distribution of VSP wines in all but the most remote areas of Chile and quintupled the number of customers to 30,000. Domestic sales increased by 29 percent between 1995 and 1996, although a 5.5 percent rise in the average price for a case of wine sold had contributed to this increase. In 1996, after three years of losses, VSP finally boasted a profit of CP 305 million. (See Exhibit 4 for VSP financial statements.)

Vincor International Inc. is in the business of selling premium wine to discerning wine drinkers. The company relies on its firm resources and capabilities from which it derives its distinctive competencies. These include the ability to produce market and distribute premium New World wines to a growing market of customers around the world. The total estimated world market is worth approximately $190 billion dollars (U.S.).

The business is owned and operated by Tony Bonatelli and the mission is simple: produce quality, boutique wine at a reasonable price, with the aim of building customer loyalty and securing repeat purchases. Tony’s goal is to establish and maintain a thriving family business that provides an enjoyable lifestyle and comfortable standard of living.

But more importantly, it provides the optimum surface area of oak to wine. Smaller casks provide more oak-contact, but are not cost effective. Lastly, the age of the cask is an important factor. New oak contains the most flavoring compounds. As the cask is used, tannins and other substances are leached out of the wood and tartrate crystals from the wine build up on the barrel’s interior, eventually causing the cask to become inert. New oak also allows for more oxidation and inserts more tannin. It also contains more softening substances from the cellulose of the wood. The best French barrels cost about $800 each, the American oak costing about half. One barrel holds enough wine for about 25 cases. Well-treated barrels can be used several times, especially for whites. Therefore, if a winemaker decides to use a French oak barrel three times, each case of wine will cost roughly $14 more to produce or $7 more a case with American

In 2001 there were over 1 million wine producers worldwide, and no firm accounted for more than 1% of global retail sales. Because of this, it would be nearly impossible for the Robert Mondavi winery to dominate sales in any region. Due to Mondavi’s efforts, the winery became one of America’s most innovative,

The pricing for the products themselves are harder to approximate. There are many factors that go into deciding the price for a certain type of wine, with a certain name, from a certain company, containing a certain type of grape, that was processed a certain way. Many wine companies throughout the US have a high end wine and a low end wine. This allows the company to enter the market at all angels. Especially with the down turn of the economy, many companies have had to

As we see from the table the price varies from $3 to over $25 that is the price range available to different kind of target market to fans to enthusiasts of the wine, the advantage that Mondavi Corporation can compete in all of them. Another fact that we see from he table is that Mondavi offers a variety of different brands; this as well helps to attract and interest a wider target market share. As we know form the case is that Mondavi wines are pushing its way on to the shelves around the world so the place a customer can get the Mondavi production is increasing through the partnerships with world partners. What is seems to be lacking is the promotion, the idea that the best promotion is the words of satisfied customer

Chateau Margaux is one of the five first-growth Bordeaux wine producer; it and has one of the finest names of Bordeaux and the number of drinkers worldwide is growing through the years. Chateau Margaux’s wines are used by the connoisseurs and luxury consumers. They are facing an uncertain future, because of losing market to New World producers (such as California, Australia, South Africa and New Zealand) which have lower prices and more accessible flavours. Nowadays wine drinkers are changing tastes, which could cause a big problem.

We should be very proud of our portfolio of wine brands, but we admit that the [ yellow

* Mondavi was California’s second largest premium wine producer. * Company fulfilled its goal of producing the highest quality wine available in each premium wine segment. What are Mondavi’s strength and weakness? SWOT Analysis: Strengths: * Popular Brand locally and internationally * 50% of sales of premium wine * Only 7% of grape supplied internally Opportunities: *

• SEMILLON Sémillon is the main grape variety for semi-sweet and sweet white wines and is almost always a component of dry white wines as well. It contributes roundness, richness, and apricot and honey aromas. When affected by «noble rot», it develops an inimitable bouquet.