US winemaker Robert Mondavi has warned that the weak economy and a fall in the travel and entertainment sector has resulted in a sales slump for January and February.

The California-based group whose brands include Woodbridge and Robert Mondavi Coastal said other factors affecting the business included an oversupply of grapes which has created intense price competition and a “proliferation of new brands”.

Chairman Michael Mondavi said: “We are initiating a series of fundamental changes in our business model that will immediately improve our competitive position."

Mondavi aims to raise top-line growth, cut product and operating costs and increase efficiency and that these changes will result in charges $10m to the current, third and fourth quarters.