* The large beverage companies entering the market are a real threat, with low barriers to entry and extensive distribution networks, retail outlets and global experience.
* These companies have experience in beer, wine, soft-drinks and hard liquor distribution.
* RMW only controls 7% of the grapes used to produce their wine. This threatens supply if any large company decides to pay a higher price for California grapes. Vineyards are very susceptible to the weather, and infestation can destroy an entire vineyard.