Slide 4 of 24
Notes:
- Founded in 1966; IPO in 1993
- Family controlled; professional management, strong Board
- 6 outsiders with strong financial and marketing skills and 5 insiders (including 4 Mondavi’s and GME)
- $550M market cap with stock at $34
- Leading premium wine brands positioned across $5 - $300 price spectrum, but really two distinct businesses
- Luxury – quality; image; supply-constrained; information-intensive purchase; economy dependent
- Lifestyle – CPG business where promotion, merchandising, POS, advertising & branding are critical; impacted by over-supply of grapes
- Compete in $158B global industry
- Fragmented: top 10 producers only have 5% share – opportunities to consolidate
- Lots of brands, little recognition and loyalty
- Few have scale to advertise
- Great growth opportunities in U.S.
- Wealthy consumers trading up for quality
- Low per capita consumption (7L/capita in U.S. vs. France & Italy at 50-60)
- Favorable baby boom demographics
