Purchasers of Mondavi Futures Face Windfall

While Paul Masson, the 19th-Century California wine pioneer, vowed that he would “sell no wine before its time,” Robert Mondavi, his 20th-Century counterpart, did just the opposite two years ago by selling some of his best wines before their time.

And next month, Mondavi said Tuesday, the investors who bought their wine early through his innovative wine futures program will reap a rich payoff.

The futures buyers--mostly wine distributors but also wine merchants and collectors--bought the wines at a price that works out to $22.50 a bottle at retail for 1985 Napa Valley Cabernet Sauvignon reserve and $19 for the 1986 vintage. But now, Mondavi said, current demand for the soon-to-be-released wines has boosted the retail value to about $40 and $35, respectively, an appreciation of 78% and 84% on the two-year investments.

When offered in March, 1987, buyers reportedly had anticipated appreciation of about 30%.

For his part, Mondavi said he was pleased with the futures program’s first offerings and is selling his 1988 vintage for delivery in 1991. He also said he is considering adding a Pinot Noir to the program.

Mondavi said he decided to offer a wine futures program, similar to those offered by some of the great wine estates in Bordeaux, France, to demonstrate that Napa Valley’s best could hold their own in the marketplace. “Our wines belong in the company of the great wines of the world,” he said.

One inducement for buying wine futures is to assure supplies of the limited quantities available. Futures buyers receive their wine about six months before it is released commercially.

Mondavi said that in the 22 years since he established the Robert Mondavi Winery in Oakville, he has “come full circle” in his concept of wine making. Now, he said, he strives to grow grapes organically and to leave the resulting wines unfiltered to avoid stripping away taste elements--in a way, reducing the influence of modern technology in search of a wine imbued with “a gentleness” when young while retaining the ability to improve with age.