Robert Mondavi

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Robert Mondavi
Christi Louis
March 15, 2003
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A Bit of Info

• Premium table wine
• Sold in America and 90 countries
• Produces wine in California, Australia, Chile,
  and Italy
• 2003 Sales - 452.7 million
• Top competitors - Gallo, Beringer Blass
• Robert Mondavi is 91 years old

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Price Factors Relating to the Wine

• Vintage (1990 everywhere)
• Region
• Grape/Varietals
• Supply
• Vineyard Reputation

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Price Factors Relating to the Industry

• Californian supermarket strikes
• Globalization
• Consolidation
• Strength of currency
• Liquor Tax
• Markups by distributors and restaurants

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Inside the Price
The Breakdown Diner paid 50 Bottle cost in a
store 25 Restaurant paid 17 Distributor paid
12.50 Cost to winery to produce 10.50 Winery
Profit 2

• Last year Net profit per bottle .36

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Robert Mondavi Californian Brands
Robert Mondavi Winery 18 - 150 22
Private Selection 9 - 13 9
Woodbridge 5 - 20 7
Arrowood 20 - 85 38
Byron 24 - 45 23
Io 60 -
Opus One 150 150
La Famiglia 15 - 40 13
prices based on LI liquor store
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Price Strategy

• Product Line Pricing
• Elastic/Inelastic
• Cost of switching - low
• Customer loyalty - high

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Uh-oh

• Charles Shaw Two Buck Chuck (1.99)
• Yellow Tail (6)

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References

• www.robertmondavi.com
• www.hoovers.com
• www.youwannaknow.com
• Prial, Frank. Why the bottle New York Times.
  Aug 11, 1999
• Emert, Carol. Will the bounty San Francisco
  Chronicle. Feb 5, 2004
• Fulmer, Melinda. Sliding Prices Los Angeles
  Times. Apr. 25, 2003
• Tom from Crossroads Liquor

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(and if you see me downtown,
now you know what to get me)
Thank you