Mondavi Posts Loss on Proposal to Reorganize

Napa winemaker Robert Mondavi Corp. posted a big quarterly loss Wednesday because of charges associated with its controversial restructuring plan.

Mondavi said it lost $57.7 million, or $3.47 a share, in its fiscal first quarter ended Sept. 30, contrasted with a profit of $9.8 million, or 60 cents, a year earlier.

Without the charges, Mondavi would have had a profit of $7.3 million, or 44 cents a share.

The results included $105.9 million in pretax charges from Mondavi’s plan to sell its flagship Robert Mondavi winery, its Napa vineyards and other luxury wine assets. The company has said it would use the more than $400 million in expected proceeds to build sales of wine made at its large Woodbridge winery near Lodi, Calif.

Mondavi family members have objected to the plan, which would focus the company on wine that sells for less than $15 a bottle and forsake the pricey vintages that built its reputation.

The plan also has sparked an unsolicited $970-million bid by wine giant Constellation Brands Inc. to purchase all of Robert Mondavi. Apparently, it is not the only suitor.

“There are other companies interested in both the total company and individual assets,” Greg Evans, Mondavi’s chief executive, said in an interview. He would not elaborate.

Meanwhile, sales at Woodbridge -- the part of the company that would remain if the restructuring were completed -- continued to slide in the latest quarter. Woodbridge brand revenue declined 6% and the price per case fell 4%.

“It is still a very tough category,” Evans said.

However, two brands from the Lodi plant, Papio and Robert Mondavi Private Selection, did show growth, Evans said. The flagship Robert Mondavi wines from Napa also had a strong quarter.

All told, Mondavi’s sales grew 1% to $105.1 million from $104 million a year earlier.

The company also said it expected revenue growth of between 2% and 4% for the year.

Mondavi made its announcement after the stock market closed. Its shares rose 42 cents Wednesday to $54.50 on Nasdaq, topping the $53 a share that Constellation has offered.