US winemaker Robert Mondavi has cut its 2003 profit forecast by about 20% due to low prices, an oversupply of grapes and competition from imports.

Second quarter sales to December 31 of Mondavi wines such as Woodbridge and Robert Mondavi Private Selection, rose 8% to $141.1m. Net income dropped to $9.8m from $10.2m last year, hit by weak sales, higher expenses and special charges.

Mondavi said it did not expect “significant near-term improvement” in the US economy or in the oversupply of grapes. The company added that it would push ahead with its Spring advertising campaign.