Mondavi Problems Continue

[Craig Camp]

Mondavi Aftermath: Tim Mondavi on 'personal leave,' GM Clay Gregory fired

[docsconz]

I keep waiting for high-end wine prices to drop. So far I haven't seen it happen, although I am seeing much greater availability of previously difficult to find wines.

[Rail Paul]

I keep waiting for high-end wine prices to drop. So far I haven't seen it happen, although I am seeing much greater availability of previously difficult to find wines.

The wine manager at our local NJ Costco suggested I stop by "toward the middle of the April" as they are expecting several new labels. She's been a good guide in the past.

Everybody knows some good wines are over priced, but nobody wants to move inventory with price cuts. Once somebody breaks ranks, and wholesales 20,000 cases to Costco at a rock bottom price, the flood will let loose.

The other possibility is a winery bankruptcy which would throw a lot of wine on the market very quickly.

[docsconz]

The other possibility is a winery bankruptcy which would throw a lot of wine on the market very quickly.

I would hate to see that happen, especially to a favorite winery.

[hollywood]

Maybe Mondavi will follow Andrew Firestone on one of the Bachelor shows.

[Rail Paul]

The other possibility is a winery bankruptcy which would throw a lot of wine on the market very quickly.

I would hate to see that happen, especially to a favorite winery.

Agreed. Somebody will blink, and my guess is it will be the wineries as they go up against the wall for interest due on loans.

Some wineries incurred substantial debt for land at the peak of the market. The NASAQ collapse has taken a lot of investors / wine buyers out of the market. There is a lot of $35-40 wine offered at $75 right now, with fewer takers.

Bankruptcy court is a dangerous place. The telecomms found their assets liquidated for a dime on the dollar, or less. That prospect could force a few wineries to consider asset clearance sales.

[Beachfan]

Craig, would you comment on the direction Tim Mondavi was taking the wines; i.e., to an ostensibly older world style and away from the new world style?

He was roundly criticized by some of the US reviewers (and I thought his wines weren't as tasty, but I lean towards a new world style drinker).

Did you agree with his direction; if so, was there a problem in execution? I'm more talking quality than sales here.

note : edited due to ADD when typing in first names

Edited April 7, 2003 by Beachfan (log)

[Claude Kolm/The Fine Wine Review]

I'm not Chris, but I'll add my two cents worth. The wines may or may not have been new world style, but I wouldn't call them old world style. The overwhelming majority were very disappointing, though, in my opinion. If indeed the wines were intended to be old world style, then the missing of the mark may have led to the problems.

Best regards,

Claude Kolm

The Fine Wine Review

[Beachfan]

I'm not Chris, but I'll add my two cents worth.  The wines may or may not have been new world style, but I wouldn't call them old world style.  The overwhelming majority were very disappointing, though, in my opinion.  If indeed the wines were intended to be old world style, then the missing of the mark may have led to the problems.

Best regards,

Claude Kolm

The Fine Wine Review

That's what I thought.

From a business perspective, he killed a proven thing.

From a winemaking perspective, maybe they didn't have the skills they thought they did.

[Craig Camp]

Craig, would you comment on the direction Tim Mondavi was taking the wines; i.e., to an ostensibly older world style and away from the new world style?

He was roundly criticized by some of the US reviewers (and I thought his wines weren't as tasty, but I lean towards a new world style drinker).

Did you agree with his direction; if so, was there a problem in execution?  I'm more talking quality than sales here.

note : edited due to ADD when typing in first names

I certainly admire their stated goal of making a 'food wine' style, but would argue they did not actually attain it. Food wine does not equate with boring wine, which is what many of the Mondavi Napa wines have become. There are California wineries like Iron Horse that make a balanced style of wines that match well with food, but are still complex and interesting. Mondavi failed at this. However the financial problems of the Mondavi winery do not come from their Napa Valley wines which are a small percentage of their total sales, but from dropping sales of their huge Woodbridge brand and the mixed results of their many joint ventures - none of which make anything but dull wines except Arrowood. Opus One is widely considered the most overrated wine in California and Luce has claimed that honor in Italy. A once proud name has become associated with mediocrity.

What is exciting about anything the Mondavi name is connected to today?

[raspoutine]

What is exciting about anything the Mondavi name is connected to today?

ornellaia?

["T"]

It seems as though this is just another case of spreading oneself too thin. It is unfortunate but it happens to many companies. Methinks they are thanking their lucky stars the French chased them out of Languedoc otherwise they may have another Luce, Southern France style.

[Craig Camp]

What is exciting about anything the Mondavi name is connected to today?

ornellaia?

Robert Mondavi will bring the Frescobaldi family, its current Italian joint venture partners in Luce della Vite, into the Tenuta dell’ Ornellaia as joint partners in June 2002

For now.