Wine Makers Work On Image Advertising Increases As Competition Among Companies Heats Up

Reflecting a growing trend in the wine industry, Robert Mondavi Corp. next month will launch its first national advertising campaign - a $2 million print pitch that plays on the romance of the grape.

Up to now the renowned Napa Valley wine company, whose roots go back to 1966, has advertised almost exclusively in industry trade publications. But the soon-to-be-released campaign - created by Ketchum Advertising in San Francisco - will run in an array of national magazines, including The New Yorker, Architectural Digest, Conde Nast Traveler and Smithsonian.

Mondavi is not alone. As competition in the wine business has increased, a number of prominent wineries have jumped into mainstream advertising - a trend that underscores the trade’s evolution from a cottage industry into a mature consumer-products business.

Today, there are more than 800 wineries in California, up from 450 a mere 15 years ago. Washington sports 85 wineries, while Oregon touts 112, both numbers still rising, according to wine associations in both states.

With many retail channels shrinking, wineries have found themselves caught in a battle for market share.

Last week, St. Helena, Calif.-based Sutter Home announced it is launching its first television campaign next month, with commercials airing in 20 major markets. Other wineries recently have launched national pitches.

“All this new advertising is the result of competition in the industry,” said Rich Cartiere, editor of Wine Business Insider. “In the past Mondavi and other wineries didn’t have to advertise. But if a company like Mondavi wants to move to the next level of corporate success, they need a national campaign.”