Mondavi's modern model: the family that operates Charles Krug Winery champions organic farming and considers Colorado a critical market.

• Author: Smith, Alta
• Position: Company overview

Napa Valley's oldest winery is putting on a new face. But the changes undertaken at the Charles Krug Winery by one of America's most influential wine families embrace its heritage.

Led by Peter Mondavi and his two sons, the Charles Krug Winery has been busy replanting its vineyards, refocusing its winemaking efforts on red Bordeaux varietals, emphasizing organic farming techniques and restoring its historic buildings.

The winery was started in 1861, the same year the American Civil War broke out, and has been run by the Mondavi family since 1943, when it was acquired by Italian immigrants Cesare and Rosa Mondavi (see sidebar for more Mondavi family history).

Cesare and Rosa had two winemaking sons, Robert and Peter, both now in their 90s. Peter, who took over the winery in 1966 after a rancorous argument with his older brother, is still active in its operations but has turned more of the winery's future over to his two sons, Marc and Peter Jr.

Peter Mondavi Jr., who was in Colorado recently to meet with restaurant owners and wine buyers, spoke to Colorado Vine about his plans for the Charles Krug Winery as the third generation of Mondavis exert their influence. Peter Jr. oversees the winery's current $21.6 million investment program, which includes replanting all 850 acres of the family's Napa vineyards, upgrading the wine-making operations and restoring 19th century buildings.

The younger Mondavi makes periodic trips to Colorado because he considers it a critical market for Charles Krug, which has had strong sales in the state, especially through some of Colorado's better restaurants (see sidebar for a partial list). Although well-established, Krug is not one of the major U.S. wine brands, and the winery sees restaurant sales as a great entry to the consumer and means to broaden its market, Mondavi says. In fact, nearly three-fourths of its top red Bordeaux wines--its Vintage Selection Cabernet Sauvignon and Family Reserve Generations blend--are sold through restaurants.

Charles Krug doesn't make organic farming part of its marketing campaigns. That's because Mondavi says he and his family are doing it for philosophical reasons, because of their concern for the environment.

"We want to take care of our local environment and our local community for future generations," says Mondavi, who was named one of the country's "nourishers" in Vanity Fair magazine's recent "Green Issue."

Four of the seven Charles Krug vineyards, including the winery's historic 138-acre Family Estate Vineyard in St. Helena, have been certified organic by the California Certified Organic Farmers association. More vineyards are expected to be certified this year, making the Peter Mondavi family one of the largest certified-organic landowners in the valley.

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The association, which is one of the organic certifying agencies for the U.S. Department of Agriculture, basically requires that organic farmers grow their crops without using conventional pesticides or synthetic fertilizers. Farmers in the program have to use renewable resources and practices that conserve soil and water. It takes three years of following these rules before certification is granted.

Mondavi says being organic means "you have to be a much more diligent farmer, be much closer to the crop, because if you don't you will have problems." If mold is found on some grape clusters, they need to be cut off to keep the mold from spreading, because mold will affect the taste of the wine.

Mondavi says there are no guarantees organic farming means better wine, but the use of conventional pesticides can leave residual chemicals on the grapes that could change the fermentation process by affecting the yeast.

"If the yeast has to struggle, you'll get off-character flavors," he says.

Although the winery farming techniques are certified organic, Charles Krug wines are not given that label and probably...