Robert Mondavi Swot Analysis

In: Business and Management

Submitted By chanyukshan
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Executive Summary & SWOT Analysis of Robert Mondavi and Wine Industry
By
Bilal Quadri

Brad Ufkes

Katie Leeb

Shane Miller

Saswat Tripathy

George Brown College

HOST – 4113 International Culinary Strategies
Professor James Smith
Thursday, March 31, 2011
Executive Summary
Since 1966 Robert Mondavi has been creating innovative wines and today is one of the world’s finest brands valued at $600 million. Due to the recent economic downturn, Mondavi and general wine sales have slowed forcing the global wine industry to consolidate. Industry consolidations began to occur to New World producers by premium wineries purchasing or merging with rivals, jug wine producers’ acquiring premium wineries in order to keep pace with changing consumer tastes, and lastly alcoholic beverage firms diversifying into the premium wine market. Despite these types of consolidations Mondavi remained an independent company relying on the U.S. market for sales. While competitors spent money pursuing acquisition strategies, Mondavi chose to focus on the organic growth of its popular premier brands.

Today the global wine industry reports retail sales ranging from $130 to $180 billion in the classifications of: jug or commodity, popular premium, super premium, ultra, and luxury wines. In the United States, jug wine sales had declined approximately 3% per year over the last 10 years, while premium wines increased 8% to10% annually. A shift toward high quality premium wines is occurring in many wine producing countries such as the United Kingdom, while Europe still consumed a great deal of table wine. Currently 4 firms account for 75% of wine sales in Australia, while 20 firms controlled 75% of the U.S. wine industry, and the European market remained highly spread apart by region.

New World wine producers invested heavily in technology to create a consistency of…...

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