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° Background
° Market Information
° Nature Of Customers
° Competition
° Company Profiles
° Other Environmental Information
° Sources
 

 
 ! 
° ^merican wine first gained prominence in the
19th century.
° Ohio was the first state to successfully grow
wine grapes.
° Spanish missionaries brought grapes to
California and Texas.
° The wine industry has not regained its size
prior to prohibition.
 


° „ine competes with several substitute
beverages in the US, primarily other alcoholic
beverages.
° The ^merican culture historically has seen
wine as a luxury beverage, not suitable for
consumption on a daily basis.
 


Global Wine Consumption Per Capita

U.S.

Austria
Argentina

Spain
Italy
France
0 2 4 6 8 10 12 14 16
Gallons
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° „ine sales in the U.S. are forecasted to remain flat
for 2003, but increase steadily into 2006.
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° ^lmost all projected growth will be in the Still Red

and „hite wine sectors.
1000 Still Red Wine
900
800 Still White Wine
700
600 Still Rose Wine
500
400 Fortified
300 Wine/Vermouth
200 Sparkling Wine
100
0 Non-grape Wine
2002 2006
 !)
*




 
° „ine consumption does not decrease during
economic downturns.
° Demand softens for ultra-
ultra-premium and luxury
wines and increases for lower priced wines.
° Vintners and growers cited a ³continued
economic downturn´ as the most significant
constraint to industry growth (ahead of global
competition, wine/distributor consolidation,
and production constraints).
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° The majority of U.S. wine consumption is
concentrated in the Northeast and Pacific regions.
160
140
120 Northeast
100 South
East Central
80
West Central
60 West
40 Southwest
20 Pacific

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Total (million gallons)
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° Target: US Population over 21 years old
Consumer Profile - % of US adults consuming
Wine in the Past 7 Days (2001)
Domestic Table Imported Table Champagne and
Categories Wine Wine Sparkling Wine

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° ^ majority of US Retail „ine purchases occur at the
local grocery store.
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° Medium and large wineries are experiencing
significant consolidation while small wineries
proliferate (750+ in California alone).
° „orldwide grape-
grape-glut putting downward pressure
on prices.
° Import wines gain market share. „ines from Italy
and ^ustralia, now represent 1 in 3 bottles sold in
supermarkets.
° The Super Premium category ($7-($7-$14) is
experiencing the highest growth.
 */(


-

- 


½ .  
° Everyday Beverage:
„oodbridge ($6-
($6-$8)
° Super Premium: Robert
Mondavi Private Selection
($11)
° Ultra Premium: Robert
Mondavi „inery ($20
($20--$30)
° Luxury: Robert Mondavi
Reserve and District wines
($23--$150)
($23
(+ 

° ‰allo is the worlds largest winemaker.
° Traditionally focused on lower price categories, particularly
jug wines.
° Newer brands such as Turning Leaf and ‰allo of Sonoma
are targeted at higher priced segments.
° 2001 Revenues of $1.65 billion.
° Major Brands: Carlo Rossi, ‰allo, ‰allo Reserve, Night
Train, Ballatore, Rancho Zabaco.
 
  
° ormerly known as Canandaigua „ine Company (Now a
subsidiary).
° The Canandaigua arm focuses on the lower-
lower-priced segments
while the ranciscan arms targets Super Premium and Luxury
segments.
° Markets more than 125 brands, including beers, wines, and
spirits.
° 2001 Revenues of $3.2 billion, net income of $97.3 million.
° Major Brands: Ravenswood, Estancia, Simi, Inglenook,
^lmaden, ranciscan, Talus.
° Listed on the NYSE as STZ.
 
½ .
° Gas ownership in luxury
producing wineries like Opus One
(California), Ornellaia (Italy), and
Sena (Chile).
° Mondavi primarily targets price
segments over $8.
° Markets brands in each price
segment.
° 2001 Revenues of $0.5 billion, net
income of $43 million.
° Listed on the N^SD^ as
MOND.
 |

0 
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° Primarily owns low-
low-end brands, but has recently
acquired some higher-
higher-end brands.
° Major brands include ranzia, the leading box
wine in the US, and Corbett Canyon.
° 2001 Revenues $300 million, down 14 from
2000.
° ormerly part of Coca Cola.
° The „ine ‰roup recently purchased the ‰len
Ellen and M‰ Vallejo brands from Diageo.

*. 

 
0.




° The Bureau of ^lcohol, Tobacco and irearms
(^T) regulates the industry.
° „ine is taxed at the state and federal levels.
° Individual States determine the regulations
regarding the sale, marketing, and shipping of
alcoholic beverages.
° Sales occur through state owned and operated
stores in some states.

 (( 

° „ine may not be shipped directly to
customers in most US states.
Õ These restrictions
are currently
being debated at
the state and
federal levels.

 (( 

° In 2002, US district judges overturned
"discriminatory" interstate shipping bans in Virginia,
North Carolina, Texas, and even in New York.
° In 2002, the US Gouse and Senate passed a provision
into the Department of ustice ^ppropriations
^uthorization ^ct allowing wine purchased while
visiting a winery, to be shipped to another state.
 


° Euromonitor.com: Information concerning recent
Euromonitor.com:
trends in sectors, market segment data, forecasts,
market share information, customer demographics
and company profiles.
° Business Source Premier article ³Moving orward´:
Regional data of US wine consumption
° Gistory--of-
Gistory of-„ine.com
„ine.com:: Everything from the history of
wine, wine production around the world, the
popularity of wine in various regions
° „inebusiness.com:: Retail wine sales information
„inebusiness.com
from the end of September 2002.
 


,

° Goovers.com: Company Profiles

° „ineryExchange.com: Market Segments
° RobertMondavi.com: Price Segment offering
information, company information
° Constellationbrands.com: Company Information
° ‰allo.com: Company Information
° California ^ssociation of „inegrowers (cawg.org):
Industry News, per capita consumption statistics
° orbes, anuary 6, 2003, p 118: ³Seeing Stars.´:
Company information
 


,

° „ineinstitute.org
° Mindbranch.com
° „ine Business Monthly