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Mondavi Is Leaving the Wine Institute : Agriculture: Three other big vintners also are departing. They say the trade group is not addressing the marketing of fine wine.

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TIMES WINE WRITER

The Robert Mondavi Winery and three other major wineries are leaving the Wine Institute, the industry’s trade organization, in an escalation of a palace revolt that is threatening to divide the industry between premium and jug wine producers.

The move, effective Tuesday, follows 14 wineries’ decision a year ago to jump to a new group, the Family Winemakers of America. Family Winemakers was formed by 40 wineries that were upset with what they felt is the institute’s failure to address the marketing of fine wine.

Also leaving the trade group this month are Schramsberg, a longtime producer of Napa Valley sparkling wine; Clos Pegase, in the northern end of the valley, and Buena Vista of Sonoma, one of the oldest wineries in the state, now owned by the German firm A. Racke.

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More than 100 wineries have left the Wine Institute the last few years, many contending that the group aids large-volume wineries at the expense of smaller, premium wineries.

John De Luca, the institute’s president, declined to comment on the situation until Tuesday’s meeting, when the board of directors will discuss the Mondavi departure. He said he had agreed with the Mondavis to say nothing.

The Mondavis were unavailable for comment, but spokesman Harvey Posert said: “For 10 years, Bob Mondavi has been calling for an active, education-focused trade organization that would have a program of consumer outreach, of education about responsible use of wine across a broad spectrum--religious, social, all of the cultural panoply that we do here at the winery. He has not seen that commitment.”

“This is the culmination of a long path of frustration that Mondavi has experienced in trying to achieve objectives that he views as essential in a winery trade organization,” said Paul Gillette, a Los Angeles wine-marketing analyst.

Jan Shrem, owner of Clos Pegase, said a key issue arose two months ago when the federal Bureau of Alcohol, Tobacco and Firearms challenged the right of the small Leeward Winery in Oxnard to reprint in its newsletter material about possible health benefits of moderate wine consumption.

“Wine Institute did not take a leadership role in defending Leeward,” said Shrem, who sent out 200 letters seeking contributions to the Leeward Winery Defense Fund.

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President Steve Cousins said Buena Vista decided to leave the institute because “it doesn’t seem to be addressing the pertinent issues.” He declined to elaborate.

Schramsberg President Jack Davies was unavailable for comment, but he has long fought for stronger marketing efforts for fine wine.

The departure of Mondavi is the most serious blow that the trade group has suffered. In addition to having a worldwide reputation for quality, Mondavi markets about 3 million cases of wine annually.

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