Monday, May 19, 2008

Industry Says Goodbye to Bob Mondavi

‘Just call me Bob or Robert,’ Mr. Mondavi would often tell people, despite being one of the most distinguished winemakers in California’s history. Needless to say, the impact Robert Mondavi has had on the California wine industry is enormous. He managed to lead Napa from a jug wine producing cottage industry to a global market of fine wine. He expanded its influence worldwide and established California as an equal to all other winemaking countries, most notably France. Mondavi championed and even introduced the idea to many Americans that fine wine and food was integral to the good life. It is a sad day, indeed, to say goodbye to Robert Mondavi, but as the patriarch of Napa, he leaves behind a vast legacy for the industry, friends and family.

BACKGROUND. Mr. Mondavi was born in Minnesota on June 18, 1913. He moved to California with his family in 1923. He left the family business (Charles Krug Winery) in 1965 after he and his brother, Peter, were unable to compromise on business practices. Mondavi wanted to produce fine wines while Peter wanted to continue producing high volume brands.

Lawsuits and court battles carried on for 13 years before finally ending in 1979, when the Mondavi family was ordered to pay Mondavi $5 million for his Krug shares.

In 1965 he bought a famous vineyard in Oakville with the help of investors and built the now-famous Spanish-style winery. He also changed the pronunciation of his last name from mon-DAY-vi, which the family used, to mon-DAH-vi.

When Mondavi opened his winery, California was still primarily known for cheap jug wines. However, Mondavi worked to change that by using wine production techniques he had learned when touring Europe, such as using cold fermentation, stainless steel tanks and French oak barrels.

Not only did Mondavi’s wines receive high ratings from critics and connoisseurs, but he also entered a j-v with Baron Philippe de Rothschild's Château Mouton-Rothschild, creating Opus One. Later one, the company purchased Woodbridge winery to use in a new line of lower-priced wines.

After taking the company public in 1993, he eventually sold the Robert Mondavi Corp. to Constellation for $1.35 billion in 2004 after years of declining sales and family discord over how the business should be run. Afterwards, Mondavi vowed “to start over.”

Mondavi teamed up with his son Tim, daughter Marcia and his wife, Margrit, to launch the Continuum wine brand, which had its first release in the spring of 2008. In 2005, Robert reunited with his brother Peter to produce a wine using equal amounts of grapes from the Robert Mondavi and Peter Mondavi family vineyards. The barrel of wine sold for charity at the 2005 Napa Valley Auction and fetched more than $400,000.

Mr. Mondavi would have turned 95 on June 18th. He left most of his monies from personal interests and the stake in his winery to charity.

He is survived by his wife and children as well as his brother, Peter, and nine grandchildren.
In lieu of flowers, the family suggests donations to Copia, UC Davis, The Oxbow School and Stanford University.

TRIBUTES. Here’s what people in the industry had to say about Mr. Mondavi:

Wine critic Robert Parker: "He had the single greatest influence in this country with respect to high quality wine and its place at the table.” Mondavi was "an exceptional man....a true pioneer...a legendary pathfinder.....and I feel so privileged to have known him...a sad day...but also one to pay homage to his enormous contributions."

Robert C. Koch, president and ceo of the Wine Institute: "He had an amazing life. He was a major driving force and an incredible promoter for California wine and the Napa Valley."

Linda Reiff, executive director of the Napa Valley Vintners association: “We lost one of the most important leaders in the world of wine, and for those of us in the Napa Valley, it's as if we've lost our second father or grandfather...One of the many important lessons Mr. Mondavi taught us: ‘To always be there to help a neighbor, a friend, our community or beyond. He was one of the most kind and generous people we've ever known.’”

Gov. Arnold Schwarzenegger: "It is hard to imagine anyone having more of a lasting impact on California's $20 billion-a-year wine industry than Robert Mondavi...” Mondavi was “a tireless entrepreneur who transformed how the world felt about California wine, and an unforgettable personality to everyone who knew him.”

Jay Indelicato, chairman of the California Wine Institute: “Over the decades, he encouraged a spirit of cooperation for all wineries in California. He helped advance the whole industry, from technical issues all the way to marketing concepts and culture. He was out there doing it all himself, not just designing programs. What drove him? True passion.”

Richard Sands, chairman, Constellation Brands: “Robert was a pioneer who acted on his vision and was both passionate and relentless in his pursuit of ever-better wines, especially from the Napa Valley. He championed the marriage of fine wine, excellent food, arts and culture, and relationships that enrich lives. He was an inspiration and he will be greatly missed. Robert’s passing leaves a void in the world of wine which can never be filled. Our hearts and our thoughts are with the Mondavi family.”

Rob Sands, president and ceo, Constellation Brands, adds: “Robert’s longevity allowed him to influence generations of winemakers and wine consumers around the world. We are proud and privileged to have known the father of contemporary California wine, someone whose influence spans the globe and is timeless. His contributions to viticulture, viniculture and Constellation Brands are immeasurable. Robert’s desire, and his legacy, was to fill peoples’ wine glasses while filling their hearts and souls. I believe he succeeded on all counts.”

Anthony Terlato, chairman of the Terlato Wine Group and Terlato Wines International: “Everybody in the wine business needs to be grateful to him. He made the California wine industry...He was unselfish; he never worried about making money. He was concerned about great wine. He wanted to make great wine.”

MONDAVI ON HIMSELF. In his 1998 memoir, “Harvests of Joy: How the Good Life Became Great Business,” Robert Mondavi said the following:

“Wine to me is passion...I know that wine is, above all else, a blessing, a gift of nature, a joy as pure and elemental as the soil and vines and sunshine from which it springs.”

“From the outset, I wanted my winery to draw inspiration and methods from the traditional Old World chateaus of France and Italy, but I also wanted it to become a model of state-of- the-art technology, a pioneer in research and a gathering place for the finest minds in our industry.”


WAL-MART FOLLOWS IN TESCO’S FOOTPRINTS

We reported last week that Tesco’s Fresh & Easy format is doing rather well in the U.S., contrary to earlier reports that the UK retailer was failing. Other evidence that Fresh & Easy is doing well comes in the form of Wal-Mart’s plan to build a small footprint grocery store format called “Marketside.” Marketside will offer "fresh and delicious food" and "the highest level of customer service."

Similar to Whole Foods, the new 15,000-square-foot stores will prepare and serve food and will feature a kitchen, food counters and seating for up to nine people. The first four locations will open in Phoenix, where Tesco is soon opening new Fresh & Easy locations.

Safeway is due to start testing a new small format store in northern California this year.

UTAH GOV. LOOKING TO BOOST ALCOHOL SALES AND TOURISM

Utah Gov. Jon Huntsman Jr. proposed last week that the state do away with private club memberships to boost tourism. Currently, people must pay fees to a private-club system to order alcoholic drinks. The governor is hoping “'this could be done by legislation rather than having to wait for a vote in 2010,” said his spokeswoman.

"Alcohol is a no-win issue for governors," he said at a Utah Tourism Conference luncheon, "but we'll work on it."

Earlier this year, he proposed increasing the alcohol content in martinis from 1 ounce to 1.5 ounces. The legislature adopted the measure, which went into effect May 5.

One of the biggest obstacles is the Church of Jesus Christ of Latter-day Saints, which generally opposes any initiative to relax alcohol laws in the state. For example, the LDS Church was successful is passing legislation that will remove FMBs from grocery stores beginning Oct. 1.

SEX AND THE CITY BACKLASH

The new “Sex and the City” movie could spell a media backlash for martinis as other NYC institutions recoil against the, perhaps, over-played show. Case in point, New York’s Time Out magazine featured a brilliant cover touting 1,965 ways to have a Carrie-free weekend. The New York Post also featured a piece describing 20 ways Sex and the City has hurt, in their opinion, New York City. The fifth reason: “If you're going to order a cocktail in a martini glass, for God's sake, make it a martini. Do women really need to associate themselves with a drink that's pink?”

YELLOW TAIL LAUNCHES SPARKLING ROSE

Following the launch of [yellow tail] Sparkling White wine last fall, the brand today launched [yellow tail] Sparkling Rosé. Nielsen reports sales of sparkling rosé have risen in volume nearly 52% within the past year.

WSD BRIEFS:

KORBEL CHAMPAGNE DRAMA HEATS UP. To read about the scandalous legal dispute between champagne baron Gary B. Heck and his daughter Richie Ann Samii, click here. The father-daughter conflict has churned claims and counterclaims of fraud and conspiracy, the rights to a Guerneville-area ranch, the 19-year-old family trust and even accusations of assault.

TARGET SELECTED RNDC AS A TOP DISTRIBUTOR for 2007, according to Tim Horton, senior alcohol buyer for Target. Republic National Distributing Co. is the second largest distributor of premium wine and spirits in the nation.

ROBERT PARKER IS “JUST A WINE LOVER.” That’s what Robert Parker told Reuters in Tokyo today, claiming he “enjoys a $15 or $20 bottle of wine just as much as most people do."


Until tomorrow, Megan

“Wine is, above all else, a blessing, a gift of nature.”
Robert Mondavi

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