Has Robert Mondavi Winery been left behind? Constellation Brands, the spirits industry giant that bought Mondavi in 2004 after the family had largely been pushed out of management, believes there is still Mondavi magic to behold, and for several years has been quietly investing in the hopes of turning the iconic brand into the keystone of its luxury wine division.
The problems at Mondavi are not new. "To be honest, Robert Mondavi Winery has stagnated," says Robert Hanson, who heads Constellation's Wine & Spirits division. "We are repairing a decade of atrophy." The bad seeds were planted in Robert's aggressive expansion over the decades as he strove to realize his vision. The need for cash flow led him to create value-priced brands: Woodbridge by Robert Mondavi and what became Robert Mondavi Private Selection. Those labels were successful and helped along Mondavi's dream of turning Americans on to the idea of wine as a daily pleasure. But they also warped the image of the original Robert Mondavi wines. Even today, a consumer might be confused trying to evaluate a bottle of Robert Mondavi Private Selection Cabernet Sauvignon sourced from all over California and priced at $12 a bottle versus a Robert Mondavi Winery Reserve Cabernet made from the To Kalon Vineyard and priced at $225 a bottle.
Constellation executives have said for years that they wish to better differentiate between the three brands. But when the lower-priced wines are bringing in millions of dollars in revenue each year, thanks in part to having the name of an American wine legend on the label, it's hard to walk away. Just three years ago, Constellation launched a series of television ads with an actor playing Robert Mondavi, leading boldly, striding through vineyards in boots and sunglasses, tasting in his cellar, working to make great wine. The ads were for Woodbridge.
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