The History of Winemaking in California

Gary Vaynerchuk: Hello, everybody and welcome to Wine Library TV. I'm your host Gary Vaynerchuk and this, my friends, is The Thunder Show a.k.a. the internet’s most passionate wine program and I have the privilege, we’re still in Nashville. Peter Mondavi: Yes, we are. Gary Vaynerchuk: Peter, they have taken a lot of Chivas. Peter Mondavi: Yes, we’re trying the Nashville. Here as well, is it? Gary Vaynerchuk: Yes. Peter Mondavi: Wow! Gary Vaynerchuk : I have the privilege of having Peter Mondavi here with me to talk about Charles Krug. Peter’s here for the same reason I am with this great wine auction charity event in Nashville, and now we’re going to sit down to review his wines here right now, and do a little bit of interview style and have a little fun with Peter. So, thanks for being here. Peter Mondavi: Thank you for the invitation. Gary Vaynerchuk: I appreciate it, so why don’t you tell the Vayner nation actually of that cool little idea. Peter Mondavi: Is that here? Alright, we’ll do. Gary Vaynerchuk: I'm going out. Let’s mix it up a little bit. Let’s do interview style first. Peter Mondavi: Okay. Gary Vaynerchuk: Try something new. Why don’t you tell the vayniacs out there a little bit about your history, Charles Krug history, a little bit of that because I think that’s where it gets extremely fascinating? Peter Mondavi: Yes, it is. It’s very complex. It’s very rich. It goes way back and now the Bordeaux palate the details, but just give you a high level part of it is going back to the 1825. Charles Krug was born in Prussia, grew up not to be a vintner, but to be a journalist and in fact a radical journalist to the point where he is thrown in jail. And once he got out jail, he got kick out of his country, and fortunately that helped have him settle in San Francisco where he continues his radical writings for German newspaper there. But he got the home winemaking bag traveling up north in Sonoma County and Napa County area, and got more and more involved with home winemaking. Gary Vaynerchuk: And what was going on in the Sonoma, Napa area at this point? Peter Mondavi: But really that point vineyards have been planted, however, there is no commercial wine production going on especially in Napa, so it’s really in its infancy and that’s all more home winemaking things like for local consumption right there. So, he got married and received a dowry of 600 acres of land. Gary Vaynerchuk: Geez. Peter Mondavi: I know, if we all like marry that lot today. So on this property is of course establishes the new Charles Krug wine. It is 1861 making the very first commercial winery in Napa Valley. Gary Vaynerchuk: And I see you start promoting that right there. Peter Mondavi: Yes, since it’s 1861 here and then first to Napa Valley and on area that focused on that as well. So, he truly was the forefather in Napa Valley wine industry and then built it up. In fact some of the people who found other wineries in the area actually worked under Charles Krug as cellar masters and things like that. So, he really encouraged the development of the industry. So by the turn of the century, that was about 1890winery or something like that in Napa Valley. I'm from one in 1861. He did pass away. The banker took it over because that’s it. He was James Moffit from San Francisco. Gary Vaynerchuk: No kidding. Peter Mondavi: Yes, and he really didn’t do anything for the business. He didn’t propagate the wine business. However, he put a couple of weekend homes up there, and visited there on the weekends. Okay, that’s the Charles Krug part. Let me get my family a short part of it. Again born in late 1800’s, my grandparents Cesare and Rosa Mondavi were born in Italy, Serrato hometown and in 1908 immigrated to the United States to Ellis Island. In fact, my family visited last year and saw the ship in manifesto probably like $16 in his name when he came off that ship. Gary Vaynerchuk: It’s a good number. Peter Mondavi: He went to pay a lot back. Gary Vaynerchuk: Yes, I think I’m solid. Peter Mondavi: Yeah, so he went to Virginia. Gary Vaynerchuk: I mean how can I get 600 acres of that land for the client now. Peter Mondavi: So, Rose and my grandparents went to settle in Virginia, northern Minnesota area. The reason being is they have friends and relatives there, and sponsors they get to seen in those days. So, like Charles Krug nothing do to wine business not back home in the old country nor in Virginia, Minnesota, of course. Iron mining came within my grandfather. He did iron mines, so he started up a little Prussian store business, and then as the nation moved in the Prohibition a lot of Italians up in this area, of course they loved their wine for everyday beverage, and not to knock the Minnesota winters, but as we moved into the Prohibition, they just can’t get access for the wine. You’re not going to be growing grapes up there in those winters and you’re not buying it of course during Prohibition. So, my grandfather started a business and went to California, took a train to California, contract with wine grape farmers. Here, he get like Zinfandel, Carignan and Alicante varieties, have it hand and packed in 40-pound wooden log boxes and loaded in rent cars, ship out and sell this for homemade wine. It turned into a huge business during Prohibition. By the way, it was later to produce about 220 ounce of homemade wine during Prohibition as long as he didn’t sell it, consumed it at home. Gary Vaynerchuk: Right. Peter Mondavi: It turned into a business shipping wine grapes from not only in Minnesota but in New Jersey, in Connecticut, Massachusetts, New York, the whole north eastern part of the United States and a lot of the beverage of course where sold in the business. I moved the family out of California in Lodi which is the heart of fruit-vegetable packing business back then, and further the business. And then after the Repeal when we get directly involved in the wine business, and through his endeavors, and sourcing fruit or grapes from various parts of California including North Coast alpines and snowy areas. His clients always preferred and love him and would pay for premium for Napa fruit. So we thought that had to be the best prospect for premium winemaking. So, we look up there in 1943, came across the Charles Krug Winery. It goes for sale, Mr. Moffit have it for sale. My grandparents bought it at about 150 acres which were made of the original state, historical buildings and of course the Charles Krug name for a grand sum of $75,000. So, that’s how we have the family name associated with the Charles Krug brand name. Gary Vaynerchuk: Got it. Peter Mondavi: This is where we get more complicated. My uncle Robert Mondavi because my father Peter Mondavi refurbished the wine in 1943, resurrected the brand name, built it up, and then in 1965 my uncle Robert split off and was down south only 78 miles or so and he started his operation for Robert Mondavi Winery. Shortly after that we bought out his ownership of Charles Krug, and they need further build up the business and then my dad had the philosophy of making premium wines. The caliber we’re striving for, the best way is to control the vineyards, control your fruit source. How did you get that? You buy the land. Gary Vaynerchuk: Yes. Peter Mondavi: And he was fortunate, insightful. He started buying land and in late 60’s or early 70’s we’re on a massive land buying spree. And on the series of properties neither not vineyards. These were fowl land, dairy land, pear orchards, number one seller in market. I had it make like pear wine in the lab. If you ever take it at all, of course we never made it commercially, and so he bought this land, but he stopped buying when the price has hit about $8,000 an acre. Peter Mondavi: Back then I think it was expensive, but today $150,000 to $300,000 is the range for an acre of a vineyard land in Napa Valley, so we’re very fortunate because we have vineyards and have mountains in St. Helena, Yountville and down to Carneros area. Gary Vaynerchuk: How many acres do you guys have planted? Peter Mondavi: We have a total of 815 land acres. There are about 500 that we did actually planted today. Gary Vaynerchuk: And what is the total production of Charles Krug? Peter Mondavi: Charles Krug, we have eight varieties total. A total production today is about 65,000 cases, medium size in Napa Valley. Gary Vaynerchuk: Right. Peter Mondavi: So— Gary Vaynerchuk: And what is your day-to-day job these days? Peter Momdavi: Day-to-day job, a little bit of everything. Gary Vaynerchuk: Jack of all trades? Peter Mondavi: Jack of all trades. I oversee the vineyards. I oversee the winemaking, and of course I traveled a lot for marketing. I'm just getting the word, getting the word out, trying the distributors retailers and restaurants first. Gary Vaynerchuck: And the brand is all in 50 states or no? Peter Mondavi: Yes, recently we’ve been established. You know, it’s been in my family for over 65 years, so because of that we’ve had very long term relationships with all the distributors around the country. Gary Vaynerchuck: What family members are involved now? Peter Mondavi: It’s my self, my brother Mark and my father who will be turning 95 in November. Gary Vaynerchuck: God bless, you guys have good genes. Peter Mondavi: We do have some solid genes. He gets to the office almost every day. Gary Vaynerchuk: And what’s he’s seeing these days? What’s going with pop since he— Peter Mondavi: He just stirs the pot. Gary Vaynerchuk: He does, right? Peter Mondavi: He comes in and you know still balances a lot of his winemaking techniques which some we used, some we don’t as we move on, some we come back to, but his a wealth of knowledge and experience. Gary Vaynerchuk: What does he think of the wine industry today? Peter Mondavi: A bit mind boggling especially as he looks at the micro cosmic at Napa Valley supposed to hold it with, but in Napa Valley actually because half a dozen wineries up until the late 60’s. Today there are over 400 wineries. I’m talking about Napa Valley only. So, it’s amazing what he had seen since the 40’s. You know, what happened is some wineries up to now over 400 wineries, and all these, you know people from years to go the functions, you know vintner functions. Gary Vaynerchuk: Right. Peter Mondavi: He stopped doing that there are 10 to 15 years ago right now. No wonder they’re looking haggard too as he doesn’t know anybody because all these new people who have been coming over the years. Gary Vaynerchuk: A lot of his contemporaries obviously at that age are not around. Does he still have an old school crowd he hangs out with once in a blue moon? Peter Mondavi: Yes, he does. Gary Vaynerchuk: Whose part of that gang? Peter Mondavi: Well, he got some of the members of the Gala team. You got people from Sonoma, Verducci Fabianos. Gary Vaynerchuk: Yes. Peter Mondavi: He really had to kind of extend beyond Napa Valley. Gary Vaynerchuk: Sure. Peter Mondavi: And you know people like Dr. Dick Peterson, people like that. They’re not as old as dad. Gary Vaynerchuk: Uh-hum. Peter Momdavi: There are very few that are— Gary Vaynerchuk: Left unfortunately. Peter Mondavi: Larry Parnelli is I think his age at 97, 98 or something like that and another one, but they call a dentist like a name. There’s an old timers group, and casually gets together every couple of months. And these are people that you probably wouldn’t know. Your wine wouldn’t get probably wouldn’t necessarily recognized, but these are the people behind the scenes. Gary Vaynerchuk: That built it? Peter Mondavi: he built the industry in 50’s and 60’s Gary Vaynerchuk: When did you get involve? Peter Mondavi: Oh God, well. Gary Vaynerchuk: I mean always, but seriously day-to-day. Peter Mondavi: Yes. Well, first involvement first page I’m an eight years old doing odd jobs and the way you’re doing the summer four hours a day, and 50 cents an hour. I graduated in 81. Gary Vaynerchuk: Stay in part time? Peter Mondavi: Yeah, the day after graduation, the Monday after straight to work. Gary Vaynerchuk: Straight to work. Peter Mondavi: Yes, so— Gary Vaynerchuk: So, for you, from the 81, I mean you’ve seen a lot happening, a lot have changed between in 81 and let’s say 91, that 10 year window had a lot of different growth in Napa. Peter Mondavi: Yes, even when I was going to school up in there you know mid late 70’s, actually more late in 70’s, coming home during weekends and things like that, there is a lot of development, a lot of changes, but when I was growing as a kid very rural, diverse agricultural community, fine dining literally did not exist. Gary Vaynerchuk: Sure. Peter Mondavi: Where fast forward today, you know first call is all vintners, you know. All the old vintners as doesn’t drive from Napa Valley. God, some of the greatest dining you know the country has to offer and the selections that we have there, just unbelievable, traffic to come with it. Gary Vaynerchuk: 29 is a mess. Peter Mondavi: It is, and then just enormous wineries are more popping up that I never unheard of them. Gary Vaynerchuk: And how about your personal judgment of Paris? You know, experience, I mean just the news of Napa getting on that kind of that kind of scene at that article. How that does first hit your radar when somebody called from home? Do you remember that at all? Do you even hear it early on? Peter Mondavi: Yeah, this is past in school. This is the 70’s or 60’s. Gary Vaynerchuk: Yes. Peter Mondavi: About the Paris, I was in school, so I kind of got when through more the news media at that point, but that was--call it more of those tipping points. Gary Vaynerchuk: Sure. Peter Mondavi: Because I think their visions of Napa Valley being of that stature, and to get public independent third party recognition from afar. Gary Vaynerchuk: Was huge. Peter Mondavi: Was monumental. Gary Vaynerchuk: Did you remember thinking this is baked. This is game changing, or did it kind of because now, it’s so legendary, but at the time it’s the one with huge article. Peter Mondavi: Yes. Gary Vaynerchuk: But you know it gets blown up a little bit now. I'm just curious from your stand point being such a pioneer of this area, and since we’re going to probably do a two-part episode now because this began the intro part. Peter Mondavi: Okay. Gary Vaynerchuk: Was it something that you recognized that’s being a big deal, or you kind of like think cool? What was your mind set on that? Peter Mondavi: I think at that point gets cut. This is neat. This is going to help us. Gary Vaynerchuk: But you know with. Peter Mondavi: This is great. Gary Vaynerchuk: It doesn’t seem like as profound as it now sounds. Peter Mondavi: Today, wine is so prolific to our society. Gary Vaynerchuk: Sure. Peter Mondavi: That consumption wise, but knowledge wise, interest wise, news heading whether it’s health. Gary Vaynerchuk: Sure. Peter Mondavi: Or lifestyle. Gary Vaynerchuk: It’s in the DNA of our culture. Peter Mondavi: Yes, mid-70s it was not. Gary Vaynerchuk: Right. Peter Mondavi: It was not. Friends and relatives to school some years ago not existed at wine club, is it? There’s a Greco club. Today it’s the most populated social group on the campus as in white club. Gary Vaynerchuk: Sure. Peter Mondavi: Just as an example. Gary Vaynerchuk: Yes. Peter Mondavi: No interest at all. Gary Vaynerchuk: And that’s not a very long time if you think about it. Peter Mondavi: Not really. Gary Vaynerchuk: And how about press wise? I mean you’ve been in the wine industry, and watched things like the Wine Spectator and the Robert Parker become bigger cultural things. Back then, was it local newspapers that meant for individual? What was really driving third party opinions? What was really driving the business in the early 80’s? Let’s say late 70’s or 80’s. Peter Mondavi: I would say it was not a lot of the press. It is like was a grasp fruits effort. Gary Vaynerchuk: Retailers and restaurant and tourists? Peter Mondavi: Retailers, restaurants, tourist— Gary Vaynerchuk: Who were the big retailers? I mean was it Sam Aaron? I mean who were some of the players, do you remember? Peter Mondavi: I don’t think there were not the retailers of the magnitude today. Gary Vaynerchuk: Right. Peter Mondavi: Distribution season was incredibly fragmented just like the San Francisco bay area right at the back of the here. I got like dozens distributors. Gary Vaynerchuk: Right. Peter Mondavi: Right there. Very fragmented and the Cascais didn’t exist. Gary Vaynerchuk: Sure. Peter Mondavi: I’m shipping wine to Cascais in mass like some people are today, safe ways things like that, so it was really more of the store mom and pop top stories which are in your lot of tasting, just basic education. We do a series at the winery academy, 50 years now tasting on a lawn. This is just I think we’re on the first nap. I like to view these things. It was a tasting open to the public. Gary Vaynerchuk: And they tell you right education. Peter Mondavi: And do the tasting in you know, I guess. That’s how we’ve educated. You were a fundamentally a graduate of education. You don’t have the press nor the internet that you have today to really propagate the word. Gary Vaynerchuk: When did you first realized the press had an impact? Do you remember the first time, maybe a Spectator or Parker rated a Krug wine high and the phone rang up to hanker for boxes? Do you remember the moment where you kind of like said, “Wait a minute.” Because, you know the late 80’s into the 90’s and 2000s was I think the internet is going to kind of change the square a bit, but that was the great year of the wine critic at some level. Do you remember that first moment to you that you said, “Okay, something is happening?” Peter Mondavi: Not just really single moment, but sad. Gary Vaynerchuk: When was it, mid 80’s, late 80’s? Peter Mondavi: Mid to late 80’s, we saw the development of Parker and wine Spectator does the most dominant. Gary Vaynerchuk: Voices. Peter Mondavi: Voices out there and it just solidify since then. Gary Vaynerchuk: What would you remember any wine really getting impact? Peter Mondavi: Yes, one wine goes back to when we were producing a reserved Merlot. Gary Vaynerchuk: Okay. Peter Mondavi: And we reserved Merlot, and I think it was our 97 Merlot. Gary Vaynerchuk: Okay. Peter Mondavi: Then we have Robert Parker in winery who is not necessarily in love with Merlots. Gary Vaynerchuk: Yes, which is true. Peter Mondavi: He tasted it and fell in love with it, and gave it a great rating. Yes, so we have — Gary Vaynerchuk: Phone calls. Peter Mondavi: Yes, phone calls. Gary Vaynerchuk: A lot of the distributors came up on the Woodrow, right? Peter Mondavi: Yes, exactly. Gary Vaynerchuk: Very cool, so let me get a cup of more rapid questions just because this is first ever interview style like this. Okay? Peter Mondavi: Okay. Gary Vaynerchuk: I'm looking forward to it. We’ll do the second part. A couple rapid questions, number one: What’s your favorite varietal now at this moment? If somebody said, “I’ll give you a varietal, what are your kinds of drinking?” Peter Mondavi: What I'm drinking? Gary Vaynerchuk: One answer Peter, don’t get rude about. Peter Mondavi: Oh God! This is tough. Gary Vaynerchuk: Push comes to show. Peter Mondavi: A specific varietals, not a blend, right? Gary Vaynerchuk: Yes, not a blend. Peter Mondavi: Okay, I'm going have to go in Sauvignon Blanc. Gary Vaynerchuk: Love it? Peter Mondavi: You’re boxing me in. Gary Vaynerchuk: I am boxing you in. You’re the little box right now in the subtle. How about favorite wines right now, again because palate changed outside the US? What do you intrigue buyer or excited about? Peter Mondavi: Outside the US you know, probably some of the Shiraz out of Shiraz inside of Australia. Gary Vaynerchuk: You like that? Peter Mondavi: Yes. Gary Vaynerchuk: The fruit is enticing. Peter Mondavi: I like the fruit and I have admittedly more of a New World palate. Gary Vaynerchuk: Good. Peter Mondavi: Yes. Gary Vaynerchuk: How about favorite food? Peter Mondavi: Favorite food, Oh, God! I had to admit my heritage is Italian. Gary Vaynerchuk: Nice. Peter Mondavi: And very difficult to find it the way my grandmother. Gary Vaynerchuk: Made it. Peter Mondavi: Made it, but I always do try that one what if do find in other menus. Gary Vaynerchuk: Sports, do you like them? Peter Mondavi: The only sport, I know you’re a sport fanatic. Gary Vaynerchuk: I'm on that, yes. Peter Mondavi: The only sport that I do fall in some degrees actually Formula one. Gary Vaynerchuk: Really? Peter Mondavi: I’ve already done these things. Gary Vaynerchuk: Do you go to Montreal? Peter Mondavi: No, I have been to any Napa’s twice then. Gary Vaynerchuk: Nice. Peter Mondavi: So, I can see those. Gary Vaynerchuk: Very, very cool. Peter Mondavi: And hopefully it’s coming back to the Napa’s again. Gary Vaynerchuk: And how about pop culture. Do you watch television at all? Peter Mondavi: Virtually zero. Gary Vaynerchuk: What about, do you read a lot? Peter Mondavi: New York Times, that’s good. Gary Vaynerchuk: Everyday? Peter Mondavi: Pretty much everyday, yes. Gary Vaynerchuk: Yes, and what about technology. What’s your favorite piece of technology right now? Peter Mondavi: Favorite piece of technology right now, I just got my new, recently Blackberry. Gary Vaynerchuk: Love it? Peter Mondavi: Yes, pretty much, and email I got with the handler. I email a lot and on the cell phone form, but you know what? Gary Vaynerchuk: It’s a combination. Peter Mondavi: It comes in handy. Gary Vaynerchuk: Awesome. Peter Mondavi: It definitely comes in handy then the pictures and I’ve got phones that came out but with the cameras, too. Gary Vaynerchuk: Yes. Peter Mondavi: What you did that for? And I’ve used it at all. The pictures still got like that. Gary Vaynerchuk: Nice, well, good. We’re going to do the second part of this. Get ready to taste the wines, thanks, Peter. Thank you so much. Peter Mondavi: Thank you, Gary. Gary Vaynerchuk: Alright.