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Copia: A success in failure?
Tuesday, December 16, 2008
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Much has been written about the demise of Copia in the past few weeks.

Logically, particular attention has been paid here locally in the Napa Valley and in this newspaper. We have all followed the chronicles of business changes, management changes, financial struggles and court battles. As a person who has been intimately familiar with the workings, and shortcomings, of the organization — I offer you a point to consider as you form your own opinions on the last chapter of the story that is Copia.
When Robert and Margrit Mondavi decided to make the founding gift that started the development of Copia, they had an altruistic motive to share. They had personally benefited from the growth, development, and prominence of the California wine industry. The empire of the Robert Mondavi Winery created great wealth and prosperity for many. With wine market leadership, logically came the complement of great food. What better accompaniment to fine wine, and quality food, than the enjoyment of a great concert, or beautiful paintings, or the performing arts? This combination started the dream of giving back that became Copia.

Many people have shared their lack of understanding of the concept of Copia. Is it a museum to food and wine? Is it a large event venue? Is it here for the benefit of locals or of tourists? I have also heard many critics accusing Copia of being too elitist. As someone who served on the volunteer board of Copia for three years, and recently stepped in as an acting CEO, I agree with all of these criticisms. 
Copia, like many young businesses, struggled. In the early years the organization made many mistakes. The primary downfall of Copia in the end was the mountain of debt that the organization borrowed to fund the construction of the campus.

These observations and criticisms are all correct. Copia did however, do many things right. More than one million registered visitors took a class on a food or wine topic and expanded their appreciation. Several million visitors ate a memorable meal in Julia’s Kitchen, and left with a wonderful memory of Napa. Copia hosted more than 500,000 people for annual concerts and festivals that excited locals and tourists alike about the topic of food and wine.
We are a country of great pastimes. If you enjoy baseball, we have the Baseball Hall of Fame in Cooperstown, N.Y. If you are a rock and roll fan, we have the Rock and Roll Hall of Fame and Museum in Cleveland. Country music has the Grand Ol’ Opry In Nashville. It is only logical that Napa Valley would be the headquarters for a food and wine center.

The concept and the destination were right for Copia to succeed, but the business model was wrong.

In economic terms, Copia was a commercial failure. The business of Copia never produced a profit to sustain operations, and never built an endowment like most not-for-profits. Each year operating losses were made up from the generosity of the board, winery partners and the members and donors who believed in the concept of Copia. This is clearly not a recipe for long-term success for any organization.

In my short period running the organization, and leading the business towards more broadly consumer-focused activities, I met many Napa leaders who counted on Copia for the success of their development projects. The city of Napa is clearly moving through a period of significant change and development. Just in the last few years we have seen several hundred millions of dollars invested in the Oxbow Market, The Westin Verasa, Channel Properties in the Riverfront project, and the recently approved Ritz-Carlton resort. These investments within blocks of Copia are monumental.

These premier projects didn’t choose to locate themselves — and the hundreds of jobs and the millions of dollars of investment — in St. Helena or Yountville or Sonoma. They chose the city of Napa.

This wave of change, and this new era of prosperity and growth in Napa, are directly attributed to the original investment in Copia. I’ve met with and spoken to the owners and developers of these projects. The general consensus is that the investment in Copia created the wave of change and prosperity that is benefiting Napa today. Will this investment continue now that Copia is gone? Certainly.

The purpose of this letter is not to try and convince readers that Copia was a commercial success. It was not. While the hundreds of dedicated Copia employees and volunteers did work very hard to make the business profitable, the real success of the organization was the purpose it served.

Robert and Margrit Mondavi’s wish when they donated tens of millions of dollars to launch Copia was to give something back to the city of Napa. They not only used their money, but also their reputations and their contacts to generate donations of more than $50 million to launch the concept of Copia. This investment has served its mission well and enriched the community and the city of Napa more than 10 times over. This is not the end, but a new beginning for the community that benefited from this generosity and vision.

(McGuire is the former Interim CEO of Copia. He resigned Dec. 5.)
26 comment(s)

tfytmp wrote on Dec 16, 2008 7:07 AM:

" Wine has caused the price of home to rise so high in Napa County that too many people who work in Napa County cannot afford to buy a house in Napa County. The greed of the wine makers is one reason why the country is a major downturn that may may lead to a depression. Mondavi and his ilk ruined Napa County. "

Dirty Napkin wrote on Dec 16, 2008 7:33 AM:

" This copia drivel is also getting OLD! See the failure, and move on. "

MarshaMarsha wrote on Dec 16, 2008 8:01 AM:

" Concept: Success

Architectual Design: Success

Location: Failure

Management: Failure

Operations: Failure "

truthteller wrote on Dec 16, 2008 8:27 AM:

" It is this unrealistic pie in the sky attitude that doomed Copia to failure. The glass is indeed not half full; there is no glass. "

if you can't beat 'em... wrote on Dec 16, 2008 8:46 AM:

" Thank you for your honesty.
I will miss Copia--I appreciate the effort to create something different in a sea of wineries and restaurants. "

G SQUARED wrote on Dec 16, 2008 8:47 AM:

" As I wrote in an earlier blog about COPIA, I worked directly with all of the Board Members and employees. Garry McGuire had the drive, the commitment, the moxie, and the vision to take COPIA into the future. Unfortunately, as is so often the case in these troubled times, the current economic woes stopped COPIA in it's tracks. Garry's op-ed piece is spot on with every point made. What's done is done though and let's make sure we remember that COPIA's existence has educated people all over the world and brought tax dollars to the community through increased tourism and new development. "

epicuria wrote on Dec 16, 2008 9:40 AM:

" I commend Mr. McGuire for his balanced statements. Now get ready for all the resenters to pile on, spewing venom in each sentence.

The fact of the matter is that the project was too ambitious and could not be sustained. It couldn't hit its numbers no matter how the programming was shaped and reshaped. The projections were too optimistic; and then there was 9/11, which made the launch even more challenging. Also there was a misreading of what visitors to the valley wanted to do. Taking a slight detour to a "museum" wasn't in their plans as it might have been if they were in a more urban or cosmpolitan area like, say, Santa Fe. The great majority of Napa residents are at best indifferent to Copia's cultural offerings, many hostile along the lines of the Sarah Palin Syndrome.

McGuire is right to stress the development that has gone up and will go up around Copia. Prior to Copia it was a forgotten neighborhood. Also downtown has benefitted. It's ironic that the foul economy aside, a critical mass, a synergy, has formed that will benefit all the components of the Oxbow area. If allowed to continue Copia might well have survived and gone on to thrive as a more circumscribed cultural center.

Let's hope that out of the ashes a Phoenix will rise up to keep Mr. Mondavi's vision alive. "

Rob C wrote on Dec 16, 2008 10:26 AM:

" Um....OK, sure. Everyone feel better now? "

Newview wrote on Dec 16, 2008 10:32 AM:

" Thank you! Salute to you! better to have tried than not try at all. "

elb wrote on Dec 16, 2008 10:41 AM:

" So tell us, Mr. McGuire, what's being done for all the employees who got canned right before Thanksgiving and Christmas? What is Copia doing to help "their bottom lines"?

I really don't care about all the hoopla you just wrote about. You all had a plan and failed to implement it and or see it through. For all your fancy degrees, supposed smarts and even endless flows of money, money, money... you, the leaders, failed.

In the end, people are suffering to make Christmas happen for their families. You gave them an 81/2 by 11 piece of paper taped to a front door. I have no respect for that. None whatsoever.

You can tout your successes along this path of utter failure, and you can distract yourselves with all these stories of "millions of dollars shared" along with great vision "for the people", but in the end, families (Your dedicated employees) are struggling this holiday.

And THAT'S a bottom line you corporate people seem to forget about time and time again. Why is that, exACTly? "

notshocked wrote on Dec 16, 2008 11:30 AM:

" Very nice article Mr. McGuire. I think it is important, as you did, to point out the extreme benevolence (tens of millions of dollars in donations and more fundraising) by the Mondavi's. So I am actually shocked that people still find these folks "greedy".

Not only did Mondavi and others attempt to put something downtown (recall there was ever the complaint that tourists and their money by-passed the town on their way up valley), but they helped put the valley on the map, to raise the home VALUES, and grew an industry that could eclipse the value of many small countries in the world.

I find the dissention expressed by many commenters here simply demonstrate a lack of big picture thinking. I appreciate your honest reflection of the situation. I tend to think if you failed trying, it's better than not trying at all: "Success comes to those who are neither afraid to fail nor discouraged by failures" may you find success in your next endeavor!

By the way... your dedicated employees are not the only ones struggling this holiday. Shame on them for not planning a safety net. I know.... here come nasty-grams for that comment! "

abouttime wrote on Dec 16, 2008 11:33 AM:

" Copia was a triumph of imagination over marketing. A financial failure that also gave life to so much that is improving in downtown Napa. Anyone who does not see that value of the Wine Industry to our community is simply blinded by bitterness and longing for a past that will never be back.

It was a bold vision. It's execution an utter failure. Let us hope that this world class building will find another use worthy of brief heritage and one that will be part of Napa emerging future. "

epicuria wrote on Dec 16, 2008 11:44 AM:

" So tell us, Mr. Elb, haven't you read the other articles. Your rage is so all consuming against everything Copia stood for--the hoopla as you call it--that you wallow in the misery. The tactic that Copia followed went down in flames. Other measures are being pursued.

But more to the point, the employees at Copia weren't chained to their desks. Nor were they children unable to act in their own self interest. They are adults who knew the score and could take actions to minimize the impact. This is what Richard Miami did, for example, going back to his old part time wine educator job. Others have left over the past six months knowing how grim the outlook was once the economy tanked.

Wipe the foam from your mouth. "

mikeb wrote on Dec 16, 2008 12:30 PM:

" Yes, Copia succeeded in securing over $70 million in debt. They failed at paying it back. Now everyone, open your wallets and bail out the Elitists' playground. "

guyfood wrote on Dec 16, 2008 12:55 PM:

" EPICURIA: You may want to check your sources. Copia laid off several employees including the one you mentioned a couple months ago. At the time, all those employees were paid out their wages and vacation time.

I agree that Copia employees knew the risk of their jobs, but never did they think they wouldn't be paid for wages already earned. That was their money. It never should have been touched. Imagine being given no notice that you have lost your job, plus you won't be paid for the week you just worked and you also won't be receiving the vacation time you have earned. Have a heart Epicuria. "

manxkat wrote on Dec 16, 2008 1:07 PM:

" But you had Joe Fischer as your CFO. Wasn't this a financial disaster? "

Dinodiesel wrote on Dec 16, 2008 1:42 PM:

" Thanks for writing this and explaining your perspective which I share. I loved visiting Copia and was a member since opening day. Copia's concept and execution embodied MY vision of California, the sophistication that can only be expressed in fine wine, food, and living. "

Dinodiesel wrote on Dec 16, 2008 1:49 PM:

" Thanks for writing this and explaining your perspective which I share. I loved visiting Copia and was a member since opening day. Copia's concept and execution embodied MY vision of California, the sophistication that can only be expressed in fine wine, food, and living. "

valleylocal wrote on Dec 16, 2008 1:49 PM:

" I applaud the vision and the effort. Unfortunately as you can see by the nasty blogs, many Napans are not ready for culture. Maybe they would prefer another trailer park. I hope whoever buys COPIA will make the best of a beautiful building and perfect location and create a positive outlet for locals. The tourists will follow. "

Rob C wrote on Dec 16, 2008 4:03 PM:

" Blaming the victims is the coolest... "

NVGal wrote on Dec 16, 2008 7:40 PM:

" “The general consensus is that the investment in Copia created the wave of change and prosperity that is benefiting Napa today” is utter BS. In 1998, us little blue collar know nothing Napkins passed a local sales tax measure that helped fund and paved the way for the Napa flood project. This is the real investment in this flood project that helped spur the development in the Oxbow and surrounding areas that we see today. Not some failed tourist destination. So us know nothing Napkins are now reaping the benefits of the very change we put into motion and funded, but somehow are always accused of never wanting. Mondavi bought that land in 1996, the flood project plans were well in place before then.

The truth of Copia is that the generous gift of a grateful man was wasted. Over 7 years, countless people who were paid too much money could never figure out that the real food and wine destination of Napa Valley is a picnic table with a great view. Not some concrete building along the Napa river.

While over 1.0 mil people have visited Copia, what isn’t said is that only 150,000 visitors of the 5 million annually stopped there. For 7 years Copia made promises it couldn’t keep, not to local Napa, not to the tourists, not to their employees, the banks or countless creditors. "

NVGal wrote on Dec 16, 2008 9:39 PM:

" Epicuria, you wrote “The great majority of Napa residents are at best indifferent to Copia's cultural offerings”, most likely because instead of learning about wine in a concrete building with no personality, we are learning about it by making our own. Instead of dining at Julia’s Kitchen we are at BBQ’s attended or given by friends, who include winery owners, vineyard owners, vineyard managers, wine makers. We prefer the views of the vineyards in person, not in a photograph. Many of us wrote the history you are reading about at Copia. Most of us have wine in our cellars that Copia could only dream of serving or even selling, and probably doesn’t even have access to. And most of us have a life style that while you may not deem “cultural” would turn many a Copia visitor pea green with envy. "

alucawanza wrote on Dec 16, 2008 10:58 PM:

" notshocked:"By the way... your dedicated employees are not the only ones struggling this holiday. Shame on them for not planning a safety net. I know.... here come nasty-grams for that comment! "

Here's a nasty-gram for you. How dare you blame the employees for being shut out and struggling There was no warning. They lost their jobs by reading a piece of paper on the door of their employment. I am so shocked by your lack of feeling for these people. It's just the others you feel sorry for.
You'll probably be visited by three ghosts on Christmas Eve who will show you the errors in your thinking. I bet you have a great safety net. Donate a turkey to the poor.
How did your comment get by the comment guidelines: Refrain from personal attacks, degrading comments or remarks that do not add to a constructive dialogue??? "

NVGal wrote on Dec 16, 2008 10:59 PM:

" The first investment that helped spur the development in the Oxbow and surrounding areas that we see today was from the flood project. In 1998 a sales tax measure was voted on and passed by local Napan’s that helped to support and fund the project, that ultimately lead to the successful development in the Oxbow area that we have today. In 1986, that area was severely under water and was never attractive to high end commercial developers. Mondavi purchased the Copia land in 1996, by then the local flood committees were well underway.

While the flood project is not a highly romantic idea such as the Copia vision was, hopefully this sheds some light on the fact that local Napan’s supported commercial development in this area and did so with our own vote and tax money.

The vision that Mondavi had we Napan’s live every single day. A food and wine destination is a picnic table with a great view, not some concrete building. Most tourists want to be living the life not reading about it. "

epicuria wrote on Dec 17, 2008 9:39 AM:

" NVGal: First of all the Napans you describe are a small subset of the City's population. Most residents have little or no connection with the industry, and many are hostile because of the influx of tourists. An even smaller number make their own wine.

Secondly, you distort what Copia was. Sure it had exhibits such as the Ira Yaeger retrospective which deserved to be seen by those who care about art, but its real appeal were the events, none of which are replicated at the wineries in the Valley: the concerts, the flicks, the cooking classes and author presentations, the symposia and conferences, the wine tastings by region or variety (the last one held brought together wineries making vino from traditionally spanish grapes like Albarino.)

Let's see what phoenix emerges from the ashes. "

mominapa wrote on Dec 23, 2008 8:22 AM:

" I don't give a hoot in hades for Robert Mondavi's dream. What about my dream? The money he put up to begin Copia would have bought me 5 houses. I work full time and have all my life and still I can't even afford to buy a house in the valley in which I have lived for 43 years because people like Robert Mondavi tried to present this place as some kind of "south of France" resort. Copia failed because it wasn't meant for the people who really support this valley - the middle class. It was meant for the rich, pure and simple and glossing that over will NOT change it. NONE of my friends ever frequented the place and that would have been necessary to keep the doors open. The fact is that they made mistakes and were not the right venue for Napa Valley. That is why they failed. It was a monument to Robert Mondavi's ego and that of his pretentious spoiled brat of a wife. "

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