EXHIBIT 99.1
Jean-Michel Valette Named President & Managing Director of
Robert Mondavi Winery
NAPA, Calif.--(BUSINESS WIRE)--Oct. 6, 2004--
Tim Mondavi Leaves The Robert Mondavi Corporation as an
Employee; Tim Mondavi to Remain Consulting Winegrower; Tim Mondavi
States Plans to Form Investor Group
The Robert Mondavi Corporation (NASDAQ:MOND) announced today the
completion of its previously announced search for a seasoned executive
to manage its core luxury assets. Jean-Michel Valette has been
appointed President & Managing Director of Robert Mondavi Winery
effective October 6, 2004. Valette, one of 18 American Masters of
Wine, has broad business experience including senior roles at
Franciscan Estates where he served as President and CEO and at
Hambrecht & Quist, Inc. In addition to wine, he has deep experience in
consumer and luxury goods companies. Valette currently sits on the
board of directors for The Boston Beer Company, which produces Samuel
Adams, Select Comfort Corporation, and Peet's Coffee & Tea, Inc. where
he serves and will continue as Chairman of the Board.
"We are pleased to have someone of Jean-Michel Valette's talent
and experience. His skills and in-depth knowledge of the Napa Valley
will be invaluable as we take steps to protect and enhance the unique
position of Robert Mondavi Winery among the great wine estates of the
world," said Ted Hall, Chairman of the Board for The Robert Mondavi
Corporation.
"It is an incredible honor to join one of the world's great fine
wine estates at an exciting turning point in its life. I am looking
forward to bringing renewed focus and attention to Robert Mondavi
Winery as an independent entity in the long-term ownership hands where
it belongs," said Jean-Michel Valette. "Most exciting of all is the
opportunity to refocus our efforts on the legendary To Kalon Vineyard,
the most special piece of ground where Robert Mondavi's mission
began."
Valette received his M.B.A. from Harvard Business School and a
B.A. (German literature/Economics) and M.S. (Engineering Economic
Systems) from Stanford University where he was elected Phi Beta Kappa.
He is fluent in both German and French. He is an avid mountain climber
who has scaled several of the world's tallest summits including Mt.
Everest.
The company also announced that Timothy J. Mondavi will leave as
an employee of the company, effective immediately. "I intend to
explore wine related opportunities with members of my family," said
Tim Mondavi. "I will remain a consultant to the company, so I can
continue to help maintain the style and legacy of our fine wines from
the Napa Valley."
Importantly, Tim Mondavi will continue as Consulting Winegrower
for the Robert Mondavi Winery. "Tim's commitment to our mission means
a lot," said Valette. "His perspective and experience are invaluable
and his palate is, of course, extraordinary."
"The retention of Tim as Consulting Winegrower and the appointment
of Jean-Michel are key parts of our previously announced careful
process to maximize the long-term value of our unique agricultural
assets," said Hall. "We thank Tim for his many years of dedicated
service. His creativity and insightful views of the wine world have
challenged and enriched us. We are pleased to continue our affiliation
with Tim and wish him every success in the future."
Tim Mondavi joined the company in 1974 after receiving a degree in
enology and viticulture from University of California at Davis. He has
served in a wide range of roles, including Co-CEO and Vice Chairman,
Winegrower. Among many innovations, he pioneered the concept of
"natural winegrowing" developing significant environmental programs in
the vineyard.
In the late 1970's and early 1980's he played a pivotal role in
developing, defining and promoting the appellation of the Napa Valley
and the appellation system within it. In 2002, Tim Mondavi was honored
by an appointment to the Dean's Advisory Council for the College of
Agricultural and Environmental Sciences at the University of
California at Davis. He was also Patron for the 2002-2003 MBA Program
Specializing in Wine at the Bordeaux Ecole de Management (founded
1874) in Bordeaux, France. He is a former member of the Board of
Directors for the Oakville Winegrowers Organization and of the Stags
Leap Winegrowers, both appellations which he helped form. He was a
Board member of the St. Helena Hospital Foundation, of which he is a
past chairman.
In his role as lead winegrower for his family, since 1976, Tim
Mondavi established the winegrowing philosophy and policies for all
Robert Mondavi Corporation wines, including sharing that role in the
international joint venture partnerships. "I am proud of the fine
winegrowing team we have put in place and the wines the team has
developed," said Tim Mondavi.
Important Information For Investors and Shareholders
In connection with the proposed recapitalization plan, The Robert
Mondavi Corporation will file a combined proxy statement/prospectus
and other relevant documents with the Securities and Exchange
Commission (the "SEC"). INVESTORS AND SHAREHOLDERS ARE URGED TO READ
THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AS IT WILL
CONTAIN IMPORTANT INFORMATION ABOUT THE RECAPITALIZATION PLAN AND
RELATED MATTERS. INVESTORS AND SHAREHOLDERS WILL HAVE ACCESS TO FREE
COPIES OF THE PROXY STATEMENT/PROSPECTUS (WHEN AVAILABLE) AND OTHER
DOCUMENTS FILED WITH THE SEC BY THE COMPANY THROUGH THE SEC WEB SITE
AT WWW.SEC.GOV. THE PROXY STATEMENT/PROSPECTUS AND RELATED MATERIALS
MAY ALSO BE OBTAINED FOR FREE (WHEN AVAILABLE) FROM THE COMPANY BY
DIRECTING A REQUEST TO THE COMPANY'S INVESTOR RELATIONS DEPARTMENT AT
841 LATOUR COURT, NAPA, CA 94558; TELEPHONE (707) 251-4850; E-MAIL
MOND@ROBERTMONDAVI.COM.
The company and its directors, executive officers, certain members
of management and employees may be deemed to be participants in the
solicitation of proxies in connection with the proposed merger.
Information regarding the persons who may, under the rules of the SEC,
be considered to be participants in the solicitation of the company's
shareholders in connection with the proposed recapitalization plan is
set forth in the company's annual report on Form 10-K for the fiscal
year ended June 30, 2004 filed with the SEC on September 10, 2004 and
proxy statement for its 2003 annual meeting of shareholders filed with
the SEC on October 28, 2003. Additional information regarding such
persons and a description of their direct and indirect interests in
the recapitalization plan will be set forth in the proxy
statement/prospectus when it is filed with the SEC.
Forward-looking Statements
This announcement and other information provided from time to time
by the company contain historical information as well as
forward-looking statements about the company, the premium wine
industry and general business and economic conditions. These
forward-looking statements include, among others, those statements
including the words "expects", "anticipates", "intends", "believes"
and similar language. Such forward-looking statements include, for
example, projections or predictions about the company's future growth,
future financial ratios, the announced restructuring and the amount of
the related charges, future actions of the company's lenders, the
company's anticipated 2005 earnings, consumer demand for its wines,
including new brands and brand extensions, margin trends, anticipated
future investment in vineyards and other capital projects, the premium
wine grape market and the premium wine industry in general.
Actual results may differ materially from the company's present
expectations. Among other things, a soft economy, a downturn in the
travel and entertainment sector, risk associated with continued
conflict in the Middle East, reduced consumer spending, or changes in
consumer preferences could reduce demand for the company's wines.
Similarly, increased competition or changes in tourism to the
company's California properties could affect the company's volume and
revenue growth outlook. The supply and price of grapes, the company's
most important raw material, is beyond the company's control. A
shortage of grapes might constrict the supply of wine available for
sale and cause higher grape costs, putting more pressure on gross
profit margins. A surplus of grapes might allow for greater sales and
lower grape costs, but it might also result in more competition and
pressure on selling prices or marketing spending. Interest rates and
other business and economic conditions could increase significantly
the cost and risks of projected capital spending. The restructuring
announced on September 14, 2004 may impair management's ability to
focus on other needed areas of business execution. There are also
significant risks associated with restructuring, including the
divestiture of the company's luxury wine assets and investments and
non-strategic assets announced on September 14, 2004.
There is no assurance that the company will successfully complete
such divestitures, or that it will realize the after-tax proceeds it
presently estimates for such divestitures. The lay offs and
significant restructuring changes announced in connection with the
company's September 14, 2004 restructuring will materially impair
future earnings. There is no assurance that the proposed restructuring
will enable the company to achieve significant cost savings or asset
rationalization, or if any cost savings or asset rationalization is
achieved, that it will be sufficient to grow the company's volumes,
profits or cash flow, or to enhance the company's competitive
position. The company may not successfully implement anticipated
improvements in its go-to-market approach for its lifestyle brands,
and if implemented, these efforts may not be effective. For additional
cautionary statements identifying important factors that could cause
actual results to differ materially from such forward-looking
information, please refer to Item 7, "Management's Discussion and
Analysis of Financial Condition and Results of Operations," in the
company's Annual Report on Form 10-K for the fiscal year ended June
30, 2004, on file with the Securities and Exchange Commission. For
these and other reasons, no forward-looking statement by the company
can or should be taken as a guarantee of what will happen in the
future.
Frequently Asked Questions (FAQ) Regarding
October 6, 2004 Robert Mondavi Corp Press Release
Why didn't Tim Mondavi leave the Company when Michael Mondavi
announced that he was leaving?
Their decisions are individual and unrelated to one another.
Will Tim Mondavi continue to serve on the Board of Directors?
Yes.
Is Tim Mondavi's departure related to Michael Mondavi's
resignation from the Board of Directors?
No.
What is Tim Mondavi's title?
Consulting Winegrower for Robert Mondavi Winery.
How will Tim's role with the Winery differ now that he is a
consultant?
Tim will focus his winemaking and viticultural expertise
specifically on Robert Mondavi Winery.
Tim will continue to play a role with the wine critics and public
as a Robert Mondavi Winery ambassador. He will continue to represent
the Robert Mondavi Winery at major events around the country. Tim is
an ongoing advocate for the philosophy and style of the wines of
Robert Mondavi Winery.
Genevieve Janssens and her team, working with Tim, will continue
to lead the day-to-day winemaking at the Robert Mondavi Winery.
CONTACT: The Robert Mondavi Corporation
Robert Philipps, 707-251-4850 (IR)
Hilary Martin, 707-251-4487 (Corp. Comm.)