Mondavi is selling off its premium brands and vineyards
Mondavi is selling off its premium brands and vineyards
Ver mensaje de Juan SuchThe Robert Mondavi Corporation is selling off its premium brands, its vineyards and one of the world’s most famous wineries - its Oakville headquarters.
The corporation is divesting itself of all its luxury wines which include a 50% share in Opus One and its dedicated Napa Valley winery co-owned with the Rothschild family.
Focus is being turned to the mass produced, lower priced brands such as Woodbridge, La Famiglia and the Robert Mondavi Private Selection, plus the Kirralaa brand from Australia.
The company has said that higher financial returns and a greater potential market are the reasons for the move.
http://www.decanter.com/news/58229.html
Is this the future for many big wineries trying to make premium wines?
Re: Mondavi is selling off its premium brands and vineyards
Ver mensaje de Juan SuchOnly in they commit big calculation mistakes... as Modavi managers did.
Cheers!
¿Are there to many "premium" wines in the market?
Ver mensaje de Juan SuchDoes that means american cellars are moving to mass production while in Spain we’re moving to small production?... did I miss something? or could this be the start of a new trend?
Regards,
Alvaro
Re: Mondavi is selling off its premium brands and vineyards
Ver mensaje de Juan SuchI found this in the Mondavi website:
";We believe that a lifestyle focused company creates a new and unique business model with compelling future earnings growth, strong cash flow generating capabilities, and relatively high financial returns which provides an excellent profile for the investing public,"; said Gregory M. Evans, President and CEO. ";By contrast, because our luxury wine brands and assets are fundamentally agricultural in nature, with long-term investment horizons and lower financial returns over the next several years, they are better suited for a private entity that has different investment criteria. A divestiture of the luxury wine assets and redeployment of the cash from those divestitures into our lifestyle brands would make great sense for the company, its shareholders and, importantly, for the luxury brands and assets themselves.";
And then, I selected this part:
";[The luxury brands] they are better suited for a private entity that has different investment criteria.";
This guy is an M.B.A. I can recognize them. And you know what? He is darn right.
DPW
twitter.com/daniel_pw
Al buen amigo, dale tu pan y dale tu vino
Re: Mondavi is selling off its premium brands and vineyards
Ver mensaje de Daniel P.WhitakerMondavi is now a big public corporation owned by shareholders. The obligations of the managers of the business is simply to make money for shareholders. There has been some speculation that when the corporation sells the assets related to ";premium"; wine, Robert Mondavi’s family will purchase it and continue to hold it privately.
Re: Mondavi is selling off its premium brands and vineyards
Ver mensaje de WaltZalenskiYes. You’re absolutely right. The point I wanted to make is that every winery, privately-held or with a huge free float in the stock market, has a different set of investment criteria. We must understand this and not forget about it. If for Mondavi Corp. does not make sense to hold luxury brands, that is totally fine and doesn’t mean nothing more (i.e., it’s not signaling the future of the industry as a whole; we would need to see much more evidence).
I insist in the two points I have made quite a few times in the Español section: ONE: the beverage we call ";Wine"; is inscribed within an industry, it’s a business, and it should be treated and managed as such. TWO: Craftmanship, even love, in winemaking and strong business management are NOT mutually exclusive.
BR,
DPW
twitter.com/daniel_pw
Al buen amigo, dale tu pan y dale tu vino
Re: Mondavi is selling off its premium brands and vineyards
Ver mensaje de Daniel P.Whitaker";Craftmanship, even love, in winemaking and strong business management are NOT mutually exclusive.";
No, they are not mutually exclusive, and I suspect (and hope) that many of the producers of the wines we admire the most are doing very well financially.
On the other hand, I do think that there is a perceived romanticism about winemaking that is not common in most other businesses. It prompts certain individuals - some who can well afford it and other who cannot - to produce the best wine they can with little regard to whether their investment will be financially rewarded (at least relative to the rewards available from putting the same money and effort into alternative investments). This is a rare but not unique circumstance. For example, I have an interest in and collect art, and I know that many fine art galleries are illogical business propositions. Presumably because the lifestyle associated with being an art dealer is appealing, many individuals continue to operate galleries for years even though they make no money at all, and may in fact loose money year after year. I don’t think that it is difficult to find similar examples in the art of winemaking.