The wine industry is very much global, and is traditionally rooted in typical variety coming from distinct regions of the world : California Nap Valley, the French regions of Burgundy and Beaujolais, fine Italian wines. Wine Is very much tied to the winery It comes from In both brand and regional recognition. The global supply chain for the wine Industry can take on several forms depending on where the wine Is produced, who grows the grapes, where the wine Is sold, and how it gets there.
Within the united States, most wine production is controlled by large companies who reduce many of their own brands of wine, often owing many wineries in California and even abroad. While the dominants brands do shift, the strong companies stays at the top. Recently in the industry there has been a movement toward consolidation, as the large company’s on top buy up smaller wineries and add them to their collection. International trade in wine has only expanded in recent years.
While there Is always a tension between the old-world and the new-world styles of winemaking, there are wineries around the world who employ both. Generally, the argue producers use more modern technology, and smaller, often family owned wineries still use time honored traditional equipment and methodologies. Robert Mondale is a leading producer of premium table wines from around the world. He found the Robert Mondale Winery in the heart of Nap Valley in 1966. He is a precursor of today modern California wine industry and established a reputation as the industry’s leading innovator.
The company is now under the leadership of his sons, Michael Mondale, Vice Chairman, and Tim Mondale, Vice Chairman and Winegrower. The company is recognized throughout the world for its winemaking excellence. Key to success of the Mondale empire Is the Mondale family. Throughout the company history, the Mondale Inner circle : Robert, Michael and Tim has been part of the management team. Whatever the company’s success or failures, the responsibility lies basically on the family’s shoulders.
The Mondale management style has come under increasing pressure since the family took the company public in 1993. Indeed, growth remains vital to the company’s success. Robert Mondale Corporation has a unique opportunity to become a leader in roving top quality premium and super-premium table wines to consumers around the world. By focusing their efforts and resources exclusively on this popular table wine segment, they will bring their wines to market in a highly effective and efficient way.
For wines as well as other alcoholic beverages, profit growth at the low end of the market may continue to be elusive, as this segment continues to experience pricing further if grape costs start to rise. For the other end segments of the wine market such as Mondale target’s, continued profit growth should be feasible especially with he reputation they have. As now competition becomes more and more aggressive. There is now many new wineries in the Nap Valley, many of which are now producing premium to ultra- premium wines that directly competed with ARM brands.
A growing number of these wineries in the premium market are owned by multinational corporations. The nature of competition within the United States wine market varied by wine category. While the basis of competition in the lower segments of the wine market is primarily driven by price and brand imaging, the other end focus mainly on quality and image. The goal of Mondale corporation at looking at international Joint venture is mainly to spread out its reputation. Michael wanted to be renown worldwide as a top quality winemakers, and by this, establish his company in other regions of the world.
Michael Mondale said We sell two things, the quality of the image and the quality of the liquid. The higher the quality of the wine, the higher the image and the more the consumer is willing to pay for it. While Mondale was looking towards Joint venture and partnership, other companies ware oriented towards acquisition and eying out small wineries to increase volume and sales. Mondale knows that going in that direction would be contrary to the quality and image that the company is aiming since its existence.
