Robert Mondavi 's Company : A Premium Wine Making Company

1389 Words Mar 31st, 2016 6 Pages
Robert Mondavi’s company is a premium wine making company he founded in 1966. The company is located in California and has grown to become one of the world’s finest and most innovative wine makers over a period of 35 years. The company has over the past enjoyed impressive growth evidenced by earnings per share growing by 28% since 1994 and market value rising to approximately $600 million. Robert Mondavi grew his company through acquisitions such as the purchase of Woodbridge winery and making major investments in the form of new wineries across California. Robert Mondavi entered the popular premium segment in the later 1970.The company also entered into a number of joint ventures and partnerships to produce premium wines.
Key pressing issues facing Robert Mondavi’s wine company include; receding wine sales volumes over the past six months, increased competition posed by growth of Australian wine imports in the US, consolidation of wine industry players through mergers and aggressive push by large diversified alcoholic beverage companies into the premium wine businesses. The company was also heavily dependent on the US market as its source of revenue. With the advent of globalization, Australian wine imports into the US had grown by 30% percent since 1995 threatening the company’s US market share position. Since the company is primarily dependent on the US market for revenue, the increase in popularity of Australian wines presented a key issue to the management. The growth…
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