Robert Mondavi Wineries Entered Into An Agreement
In the 1990s, the Mondavi empire began to unravel. The company went public and appeared to give in to shareholder demands to raise its share price, which some thought was declining in the quality of the wine. The various wineries and brands seemed to have grown too fast and the family lost control of events. In 2005, they were expelled from the board of directors of Robert Mondavi Corporation and the Board of Directors decided to sell the company to the Constellation brand of New York for $1 billion. The individual members of the Mondavi family were richer than ever, but it was an unglamorous end to a breathtaking success story. Bryon. To deliver the Woodbridge brand, RMC also began looking for alternative sources of grapes in the coastal regions of central California in the mid-1980s. In the late 1970s, bryon winemaker Ken Brown recognized the enormous promise of the region`s cooler ocean climate to grow quality pinot noir and chardonnay grapes, and was one of the first to introduce these rhne-style varieties into the appellation. Mondavi was so impressed with the wines Brown created that in 1989 he bought the Byron Winery and 55 acres of vineyards in Santa Barbara and Santa Maria counties. After the purchase, Brown became responsible for Bryon, while RMC integrated the capital and know-how needed to operate the winery and vineyard. Tim Mondavi, the company`s winemaker, was then sent to work closely with Brown to integrate the wine and winemaking techniques developed at RMC into the Bryon operation. The new 80,000 Bryon Winery case was completed in August 1996.
RMC also expanded the vineyards in Bryon and increased the total area to 1420 hectares until 1998, replanting the vineyards of the estate with heavily planted plantations. In addition to the Bryon brand, RMC planned to release a new brand from the Bryon estate under the “Io” label. Io was to be a Rhne-style wine with limited production, consisting of a unique blend of syrah, mourvedre and grenache grapes. It should be sold at a price of $40 a bottle and exclusively to the best RMC accounts. Until the mid-1990s, the U.S. wine market remained largely a domestic sector, with some imports from France, Italy and Spain competing with U.S. vineyards. However, in 1999, imports increased to 20% of the U.S. market share, seven percentage points higher than in 1995, according to Wine Business Monthly. Australian and Chilean wines, in particular, have slipped heavily into the U.S.
market. For example, from 1995 to 1999, Argentina increased the value of its exports to the United States by 243% and Chile by 152 per cent. Since 1995, according to the 2000 World Vineyard, Grape and Wine Report, the unfavourable trade balance of wine in the United States has increased by 78%.