The Californian wine group, Robert Mondavi Corp., has said that its earnings for the 2003 fiscal year will be below analysts' forecasts as a result of higher advertising and promotional spending, surplus stocks and other increased expenses.

Mondavi is forecasting adjusted earnings of $2.55 to $2.60 per share for 2003, below the general consensus forecast among analysts of $2.70 a share. The company said it expects 2003 revenues of $500m, representing a 9% to 11% increase in sales volumes and higher sales value per case.