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Unfiltered
Theft charges at the Beard Foundation, a lawsuit against Mondavi and a truffle funeral
Posted: December 15, 2004
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| The James Beard Foundation's Manhattan brownstone. |
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Former James Beard Foundation president Leonard Pickell Jr. was arraigned Dec. 13 on charges of pilfering the nonprofit culinary organization's money for personal use during his 10-year tenure. Pickell, who resigned in September during turmoil about financial irregularities, pled not guilty to charges of second-degree grand larceny (theft of more than $50,000) and possession of forged documents, mostly receipts for expense reports. He was ordered held on $800,000 bail. If convicted of larceny, Pickell could face up to 15 years in prison, or up to 25 years if prosecutors, who continue to investigate the matter, can prove he stole more than $1 million. An independent audit ordered by the foundation reported unsubstantiated expenditures of more than $371,000 just for the fiscal year ending in March 2003. And a spokesman for the New York attorney general told The New York Times that investigators found that Pickell had spent as much as $38,000 of the foundation's money on wine. Pickell's attorney, William Dowd, argued that his client used the funds to entertain chefs, vintners and corporate sponsors who supported the foundation. Dowd told The Times: "All of the expenses in question are legitimate in this kind of business."
As if Robert Mondavi Corp. doesn't face enough issues with its restructuring, Constellation's takeover bid and shareholder lawsuits, the wine company is now being sued by a Napa-based producer of an alternative wine closure. Gardner Technologies, creator of the MetaCork, is suing Robert Mondavi Winery for breach of contract, negligent misrepresentation and defamation. The twist-off MetaCork, which was introduced in 2003, combines a cork with an integrated corkscrew and a resealable cap. Fetzer, Clos du Bois and other wineries issued trial bottlings with MetaCork, but Gardner was counting on Mondavi's backing to get broad industry acceptance. According to the complaint, Mondavi agreed in writing in March 2004 to top more than 150,000 cases of its Private Selection series with MetaCork. But the corporate shake-up this summer put the project on hold; Mondavi then cancelled it in September. According to the suit, because Gardner had an exclusivity agreement with Mondavi, no other wineries were lined up to introduce MetaCork. Gardner claims it is on the brink of ruin; it is seeking damages of more than $7 million. A court hearing is set for May.
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| Zafferano manager Enzo Cassini and the notorious truffle. |
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After a giant Tuscan white truffle was auctioned off for a record price of $52,000, fame followed it to London. Zafferano restaurant put it on display on a silver tray for a week. People came all the way from Spain to see it. But the glare of the bright lights was too much for the formidable fungus. "After its haul from Tuscany to London, the truffle was already weary and should have been eaten straight away," said auction organizer Giselle Oberti. Instead, it went bad and was never served. "We use about a kilo of truffle per day in this season, so we didn't need it in the kitchen," said Enzo Cassini, manager of Zafferano. "The truffle became a monument. Maybe we should have had it embalmed!" Rather than that, the restaurant buried the 30-ounce fungus ceremoniously in the chef's garden. But there was to be no peace for the dilapidated truffle. Italy demanded its return to its native land. So it was exhumed and flown back to Tuscany, where it will be subjected to its second ceremonial burial on Dec. 18--in the hope that the spores will reproduce.
If beverage giant Diageo is indeed the mystery bidder for California's Chalone Wine Group, as has been suggested in some recent press reports, you sure can't tell from its U.K. headquarters. An executive called such reports "speculative," complaining that Diageo, which owns Beaulieu Vineyards and Sterling wineries in Napa, is linked to every possible wine acquisition. Commenting on whether the company is interested in expanding, the person proceeded to explain: "Our strategy has been to develop what we have and not to acquire at prices that could ultimately erode shareholder value. As you know, wine is a cyclical agricultural business and its assets tend to be overvalued. Plus it is a more capital-intensive business category than spirits. The wine sector has struggled with grape oversupply in California and Australia and with aggressive price discounting in the United States, United Kingdom and Australian markets. But in both the United States and Great Britain, our wine businesses have performed particularly well." So would that be a yes or a no?
KWV's problems have gotten worse. Earlier this month, the large South African producer fired two winemakers for illegally adding flavorings to two lots of 2004 Sauvignon Blanc that had yet to reach the market. Now it turns out that at least one doctored wine was sold to customers, the 2003 Laborie Sauvignon Blanc, which was a double-gold medal winner--the highest accolade--at South Africa's Veritas wine show. KWV withdrew the last few bottles still available on the market and admitted to the fraudulent wine in widely placed newspaper ads, promising refunds to customers. Meanwhile, anxiety among overseas buyers has prompted calls for the Cape wine industry to raise ethical standards. And the South African government has pledged $525,000 for research and testing to ensure there are no more occurrences of wine additives.
