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Mondavi’s gross revenue for its 1994 fiscal year was more than
twice that of Korbel for its 1994 calendar year ($176,236,000
versus $82,758,000), and Mondavi’s total assets at yearend were
approximately triple those of Korbel ($244,236,000 versus
$84,043,000).
Product Lines: Although Korbel produces some brandy and an
insignificant amount of still wine, it is essentially a single
product company, producing economically priced premium champagne.
In 1992, Canandaigua’s products included table wines, dessert
wines, sparkling wines, imported beer, and distilled spirits.
Sparkling wines constituted only 3.79 percent of the firm’s total
shipments for 1993.
As of the valuation date, Korbel marketed its champagne
under two labels, Armstrong Ridge and Korbel. Canandaigua
marketed its products under many brand names including Paul
Masson, Inglenook, Manischewitz, Almaden, and Taylor California
Cellars, for wine, and Corona, for beer. Although Canandaigua
also produced and marketed six different brands of sparkling wine
and maintained a 32-percent share of the sparkling wine market
for 1994, all of its sparkling wines were produced using the less
expensive Charmat process or transfer method, whereas Korbel
utilized the methode champenoise exclusively. Canandaigua
produced for the low end of the champagne market, whereas Korbel
was the leading producer of premium champagne, controlling almost
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