The oldest winery in Napa Valley is still under family ownership.
Change swept through Napa with an influx of big business and big money ready to move into ownership roles as prominent names in the Valley’s wine industry enter retirement.
But Charles Krug, purchased by Cesar and Rosa Mondavi in 1943, is still a family business. It’s a way of life for Peter Mondavi Jr., and the fourth generation is already immersed in winery operations.
“Our secret is fundamental; if you don’t have a passion for the business, it’s probably best to exit the business,” Mondavi said. “The way we are in it, here in Napa Valley, we are a very traditional brick-and-mortar business. We have land, the vineyards and a winery. We do everything here, and the family is involved in the operations. It’s a labor of love. It’s a passion.”
It started early in life for the fourth generation. Interesting summer jobs awaited the children of Peter Mondavi Jr. and his brother, Marc Mondavi. Because there are three houses on the Charles Krug property, the entire Peter Mondavi Sr. family tree once lived on the 150-acre estate.
“We basically had a family compound right next to the winery,” Peter Mondavi Jr. said. “I could literally walk to work, and we could casually expose our kids to the winery and its daily functioning. During grade school, the kids would do odd jobs in the lab in the summer. They were being exposed to at least understand what we had at the winery.”
All six members of the fourth generation are “engaged one way or the other” with Charles Krug, the winery where they grew up.
When Peter Mondavi Sr., who worked at the winery until he was 100 years old in 2015 and died in 2016, bought vineyard land in Yountville, Carneros and Rutherford in the 1960s and 1970s, it was a stroke of genius. A site on Howell Mountain, Cold Springs Vineyard, was acquired in the 1990s, and added to the family’s portfolio.
Ownership has allowed Charles Krug control of the wine growing and winemaking process. It can keep costs down as they aren’t bound to grower contracts, and it also ensures quality control. Combined with the strict expansion restrictions in place regarding hillside planting in Napa Valley, Peter Mondavi Jr. speculated that the 45,000 acres that represent Napa Valley vineyards today probably won’t be over 50,000 acres in 10 years.
There’s just not enough eligible space for vineyard sites.
“If you step back and take a financial view, is it the best return on the investment? I don’t think so,” Mondavi said. “The way we do it, owning everything is incredibly capital intensive. Our money is locked up in land and, sure, it increases in value, but it’s not cash in the bank. But, we aren’t selling our land. They aren’t producing any more Napa Valley land.”
What Charles Krug produced continued to be excellent. The Charles Krug, Cabernet Sauvignon Napa Valley 2019 ($40) had flavors of cherry, tobacco and currant, with a little touch of loamy earth. It’s a classic Napa Valley cabernet showcase, and along with its counterpart, the Charles Krug Napa Valley 2020 Merlot ($28) with dueling blue and black fruit flavors, they offer consumers an affordable opportunity to enjoy Napa Valley wines.
“All of our estate bottles give customers an incredible experience,” Mondavi said. “When they want to step it up a bit, there’s our Generations bottling. If you visit the winery, you get a chance to try our three prized limited-release, single-vineyard offerings of Slinsen, Voltz and Cold Springs.”
A very classy Bordeaux blend, the Charles Krug Generations Napa Valley 2018 ($85) had cabernet sauvignon take the front seat with black cherry flavors and perfectly structured tannins. A rosemary and sage green punch from cabernet franc swoops in perfectly on the finish.
As Charles Krug marches forward under family ownership with a diverse and excellent portfolio, it continues to make important contributions to American wine culture. The winery has hosted the Napa Valley Film Fest, Tastings on the Lawn, concerts by major musical acts, and weekend-long cooking festivals in the past.
Does Peter Mondavi Jr. ever get nervous with large crowds in a festive mood at the estate?
“We’ve been doing it for so long, we are grandfathered into hosting the events and weddings,” Mondavi said. “The newer wineries face highly restricted event permits. For us, it’s part of the culture. The tastings on the lawn have been going on for 70 years. They really started back in the late ’40s and early ’50s to educate consumers on fine wine. The knowledge on fine wine back then was extremely limited on the West Coast. At the time, the East Coast had French influence and was more advanced.”
Charles Krug helped grow an educated American consumer. It also pushed the envelope for winemakers. When he was younger, Peter Mondavi Jr. said his father hosted Monday Morning Tastings.
“These were competitive, blind tastings,” Peter Mondavi Jr. said. “Dad would let Marc and I join in with the winemaking staff. We’d taste the cabernet of our neighbors in Napa, Sonoma and even get wines from Monterey and other developing areas. We’d taste eight to 12 wines, and some were great, some were mediocre, and some were just technically bad. Today, you just don’t see that. It’s really abnormal to find a defective wine out there.”
There has never been a more educated American wine consumer or winemaker. A lot of that is due to Charles Krug.
• James Nokes has been tasting, touring and collecting in the wine world for several years. Email him at jamesnokes25@yahoo.com.