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As wine consumers trade down in cost, some wineries stand to lose, while others gain

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Trading down from Gucci to J. Crew may not seem like the toughest sacrifice in the world, but even the top 2 percent of upper-income Americans is “thinking twice” about spending their money on über-expensive goods, says Bloomberg News.

“These ‘2-percenters,’ unnerved by the most recent recession, are trading down to less-expensive” apparel and other items, the article says. It quotes the president of a luxury research firm: “The rich have lost their exuberance.”

Of course, “a small cadre of ultra-high net-worth individuals…is insulated and not cutting back,” but unless you’re in the yacht business, you’re not really concerned about these 1 percent of the 1 percent.

The article names names: On “the way down” in clothing and accessories are Prada, Armani, Gucci, Hermes and Gianni Versace. On “the way up” are Ralph Lauren, Michael Kors, Banana Republic and Urban Outfitters. In other words, brands that offer cachet and style, without the high price.

So the HENRYs (“high earner not rich yet”) are scaling back. What does it mean for luxury wine brands, particularly California Cabernet Sauvignons that have hit triple digits?

Unless you’re the owner or the winery’s banker, you can’t really know what the bottom line is. Is Screaming Eagle hurting? Harlan? How about Bryant, Colgin, Dalla Valle, Schrader, Abreu, Sloan? If these are the Armanis and Guccis of wine, then we have to expect that things are not quite as solid as they were pre-2008. The HENRYs are “thinking twice” about spending their hard-earned cash on them, and there’s no indication they’re going to return to their free-spending ways anytime soon.

Nor are there enough “ultra-high net-worth individuals” to absorb all of these expensive wines. I have to believe, based on what I’ve seen and heard, that the cults are hurting–although some of their owners are so rich that they can afford to ride out what they hope is a relatively brief soft period following the Great Recession.

What are the alternatives to the cults–the winery equivalents of the Banana Republics and J. Crews of California that the 2 percenters are turning to? Here’s my list of Cabernet Sauvignon producers whose wines are pretty much near as good as anything from the cults, but whose prices are more aligned with reality: Stonestreet, Von Strasser, Vine Cliff, Goldschmidt, Krutz, Hall, Sequoia Grove, Duckhorn, Conn Creek, Kendall-Jackson Highlands Estates, Long Meadow Ranch, Piña, Macauley, Stephen & Walker, Kuleto, Yates Family, Renteria, Creo, Snowden, Laird, Moone-Tsai, Hunnicutt, St. Supery, La Jota, Frank Family, Prime, Rubicon Cask Cabernet, Signorello, Trinchero, Stag’s Leap Artemis, Monticello, Charnu, KaDieM, Venge, Terra Valentine and Hidden Ridge. I’ve given scores of 95 points or higher in Wine Enthusiast to bottlings from each of them over the past few years, and none costs more than $90 retail.


What is a Parkerized wine?

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Robert Parker, in what was called “a rare interview with the French magazine Terre du Vins,” denied “the idea of the ‘Parkerisation’ of wines and the emergence of a richer, riper style made to please the critic’s palate.”

 Now, the information I cited above comes from an article about the Terre du Vins interview that was in the drinks business publication. I felt the need to read the original Terre du Vins story, so I Googled it and asked for a translation.

Here is the relevant RMP quote: “is there a Parker taste? Even my wife thinks it is, but I’ve never subscribed to this belief. I think my taste is too complex and varied to be defined and placed in a small black or white category. I love too many wine styles, finesse and elegance of Pope Clement the creamy richness of Petrus or Trotanoy, through the extraordinary majesty, the fullness and aging potential of Latour or Pontet -Canet. The same goes for my appreciation of wines from other regions. But I know that even if I live another 25 to 35 years, and when I leave my obituary you read, there will be a reference to wine ‘parkerized’ or to taste ‘Parker’. There is nothing I can do against it.”

Even allowing for the eccentricities of automatic online translation, these remarks ring true. So let me accept them as words Parker actually spoke, and tell you what I think.

I think Mrs. Parker got it right, bless her soul. Of course there’s a Parkerized style. Everybody in the industry knows what that means. The topic has been endlessly discussed for decades, with worldwide agreement, that, yes, the era of Robert Parker has resulted in wines of higher alcohol, greater fruity extract, stronger oak influence, and a sweeter finish.

For RMP not to see this clearly is a bit of a mystery. He may feel that, since he also has an appreciation for lighter, drier wines such as, for example, the Chenin Blancs of the Savennieres (which he described as “among the potentially most profound and ageworthy” of the world’s wines), he has immunized himself against allegations of Parkerization. As much as RMP himself may see things that way, surely the rest of us realize that it isn’t so: Parker may like a broad range of wines, but the high scores he has consistently given to the richest and most extracted of them is precisely what has caused the world to become Parkerized since the 1980s.

Parker need not apologize for it. He ought to defer to his wife’s and history’s judgment and accept the verdict. He’s done nothing wrong, except to state his preferences. If the world has allowed RMP’s tastes to dictate the style of its wines, that is not Parker’s fault. It’s not something he set out to do, but happened of its own accord. Besides, I think that Parkerization has had salutary effects. You may like or dislike that style, but at least it has helped to make wine vastly more popular worldwide than it was pre-Parker, and is continuing to do so as RMP and his organization cement their hold on the Asia market.

Parkerization also has stimulated a healthy conversation about wine style among critics, sommeliers, merchants, winemakers, educated consumers and others whose opinions count. This debate arouses passions on all sides, and can verge on the ideological; but it’s a good argument to have, as it forces everyone to think about wine in terms of a wider range of parameters than used to be available. I have just returned from two days of tasting the Cabernet Sauvignons of Alexander Valley with some very talented winemakers and sommeliers, and the topic of Parkerization and its associated issues–alcohol level, ripeness, food-friendliness, oak level, fruit bombiness–constantly arose. Each winemaker, facing his task, must decide where to throw down the gantlet on this spectrum, which Parker helped broaden. That, too, is healthy, I think: it may make the winemaker’s task more complicated, for a variety of reasons (including the market), but there’s no reason why winemakers (and proprietors) should not be held to account on matters of style.

Will there be a backlash against Parkerization, as he and other Baby Boomer critics fade from the scene? The answer is likely to be yes, but rest assured, we are not going back to the era of 11.5% alcohol by volume Cabernet Sauvignons. The toothpaste is out of the tube and cannot be put back. Vintners going forward may tinker around the stylistic edges, adjusting their wines this way or that; and climate change will add its own voice to the results. But Parker moved the goal posts with authoritative finality, and no person, or combination of persons, is going to put them back to where they used to be.


Alexander Valley Academy: new appreciation for these fine Cabernets

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It’s Friday morning, day two of the Alexander Valley Cabernet Academy, where I’m moderating a series of panels for about 35 sommeliers, from all over the country, who were invited to the event, which is sponsored by the Alexander Valley Winegrowers.

I think AVW’s feeling is that Cabernet Sauvignon is their primary grape and wine, and perhaps people don’t understand what makes it unique from other regions. This is remarkably similar to what’s occurring in Paso Robles, where I also moderated a panel just a few weeks ago for their Cab Collective, an event aimed–not at somms–but at the public, but also meant to demonstrate how good Paso Cab can be.

Panel 1 yesterday was on Cabs of the southern part of Alexander Valley: Alexander Valley’s Reserve, Lancaster Estate, Hawkes Pyramid, Stuhlmuller Reserve, Simi Landslide, Hoot Owl, Silver Oak, all from the 2008 vintage. It was good to taste these Cabs with a little bottle age on them: All were beginning (as I said) to “turn the corner” from expressing primary fruit to more bottle aged notes. All were very interesting, soft and round in the Alexander Valley way. Some had a touch of the herbaceousness that also historically has marked this valley’s Cabs. All also showed firm tannins, although two–the Lancaster and the Simi–were harder than the others. Most of the wines will benefit from 8-10 more years. My own feeling was that the Hoot Owl was the most advanced, though. That wine was higher in alcohol and riper than the others, more “Napa-esque” if you will, and I thought its future is limited for those reasons as it’s already showing signs of premature aging.

That tasting was held at Hawkes beautiful property, on a windy hillside that is officially in Alexander Valley, but might as well have been in Chalk Hill, for all I could tell. The day had dawned cloudy, cool and rainy, after our gorgeous Spring, not a good omen for the Academy. But it cleared up and turned sunny and mild, with the result that I, who am at risk of skin cancer the result of my fair complexion and overexposure to the sun in my youth, now have a sunburned nose that’s already beginning to blister. Stupid me.

From Hawkes we took the bus up to Stonestreet for a tasting and lecture from their winemaker, Graham Weerts. I was happy to see Barbara Banke, the proprietor, there; I sat next to her and, as she wished to have Gus sit in her lap, I was happy to comply, as was he. I have to say Gus is a rock star on these road trips.

The Stonestreet wines are really fabulous. Such depth and precision, power married to finesse. That’s mountain vineyards for you, as well as the most refined manufacturing process imaginable. I use that word “manufacturing” deliberately, but cautiously. The Jacksons have the technology to bring perfect grapes to the fermenter, and that technology is not available to many. As I remarked to Graham, after he told us about the process by which inferior grapes are eliminated (involving computerized imaging and blasts of air and what-not), “It’s not romantic, old-fashioned winemaking. But it does make for great wine.”

After Stonestreet we went up to Silver Oak’s estate, where somehow I’d never been. They had set up an educational program on corks, where we could smell corks infected with TCA to varying degrees and test our sensitivity, as well as corks that had other aromas, some pleasurable, some not. It showed us how much the cork can bring to the wine.

That evening the somms went to a barbecue at Hoot Owl and then took the bus down to Healdsburg for a night of gaiety and, I suppose, eating and drinking. I did not join them. I had work to do, Gus was hungry and needed walking, and I wanted to wake up early this morning and get this blog done. I dashed into Geyserville, had an icy cold IPA from 101 North, got some chow from a local eaterie, and went back to the Inn. So now, into the shower, a quick breakfast, then onto the next two panels: mid-Alexander Valley and northern Alexander Valley.


Alexander Valley, here I come!

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I’ve long had a soft spot for Alexander Valley, the AVA in Sonoma County that stretches up from Healdsburg to the Mendocino County line, at Cloverdale.

I came to know the valley especially well during the year I spent writing my first book, A Wine Journey along the Russian River. I got it into my head to describe how the Russian River first “turned on,” and found that a description of its physical beginnings had never been written–at least, so far as I could tell. So I spent a great deal of time on and along the River, and talked to a great many geologists (none of whom agreed with the others), and then came to my own conclusions, which you can read in the first chapter, “Out of the Pangaean Mists a River is Born.”

It’s one thing to get to know a region through books and maps. It’s quite another to trek it. And I did trek the Alexander Valley, in all seasons. I got drenched in winter rains, almost died capsizing a canoe on a whitewatery part of the river just outside Asti, sweated in summer heat on Rattlesnake Hill and Iron Horse’s old T-bar-T ranch, heard the hoarfrost crackle on the cold night ground while I lit a fire in an old cabin in Geyserville, ate lunch and drank wine on a sandbar, crawled through the prickly, poison ivy’d, spider-webby undergrowth of the river’s banks, tasted in my mouth the stones and dirt from Seghesio’s vineyard, climbed to the top of Squaw Rock and got dizzy looking down, met all manner of characters, visited the valley’s oldest burial ground, did tasting after tasting at as many wineries as I could, ate and drank immoderately and in general absorbed the valley into my genes (or maybe it absorbed me).

My feelings concerning Alexander Valley’s wines have not changed a great deal over the years. I always had respect and affection for them, even if the appellation seemed to be missing the excitement and glamour of, say, the Russian River Valley or the Sonoma Coast. Solid wines, you might call them, but the appellation’s boundary’s are stupid beyond recognition. They extend from the shore of the Russian River to 2,800 feet up into the Mayacamas Mountains. Surely we can do better.

There’s a conservatism about the Alexander Valley that is partly explained by its geographical location. Anyone who knows Sonoma County understands that it is divided culturally into east and west. West Sonoma is Sebastopol and Guerneville: hippies, pot, incense, environmentalists, Democrats, anarchists, the counter-culture. Inland Sonoma by contrast has long been the farming community, by nature less open to change. I don’t mean to make this distinction hard and fast–and certainly, the gentrification of places like Cloverdale, and the wine lifestyle that has changed Healdsburg so remarkably, are shifting things. But these generalizations, I think, hold true.

Alexander Valley knows what it does well, wine-wise; it’s done it for a long time, and it would be imprudent to expect it to change course mid-stream (or mid-river, as the case may be). This weekend (May 18-19), the valley hosts the annual Taste Alexander Valley event. Wineries open their doors, there’s plenty of food and laughter, and the weather will be sunny and warm. I’ll be there today and Friday, doing a couple pre-event seminars, and I hope to run into you.


In defense of wine tasting notes

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I’m mad as heck and I’m not going to take it anymore!

I’ve had it up to here [you can’t see me, but I’m holding my hand up to my forehead] with writers who complain that “wine consumers have little use and perhaps even less tolerance for wine tasting notes.”

That is simply a falsehood. The truth is, wine consumers have little use for (and they may even hate) people who say that wine consumers have little use for wine tasting notes.

Now, the anti-tasting note crowd may retort with the claim that wine consumers have little use for people who disagree with people who say that wine consumers have little use for wine tasting notes. But I disagree. You see, I happen to believe that people who say that wine consumers have little use for wine tasting notes hate people who say that people who say that wine consumers have little use for wine tasting notes are idiots. And nobody likes a hater.

If it were really true that wine consumers have little use for wine tasting notes, then why did Robert Pattinson and Kristen Stewart go on a romantic wine tasting trip to Cannes?

The anti-wine tasting note cabal can’t answer that, can they? Nor can they properly address the 1WineDude phenomenon, or explain, with any coherence, why the Hosemaster of Wine always points in the direction of magnetic north, no matter how many times you spin him around.

You see, there are many, many things these anti-wine tasting note haters can’t explain! Actually, this bloke, Michael Godel, who wrote the anti-tasting note article I linked to above, seems like a regular chap. (Blokes? Chaps? Is British catching? Except that Godel isn’t a Brit, he’s Canadian. Well, what’s the difference? They both talk funny and worship the Queen.) Anyhow, consider the following, from the Hoisted On Your Own Petard Dept.:

Angels Gate Sauvignon Blanc 2011 ($13.95) in comely, pale gold flesh and peach blossom nose is well designed if not grape-specific “correct.” And I thank her for that. Leads like a Jack Johnson ballad, gathering then tempering the 2011 vintage’s acidity and finishing with a soulful refrain. Outright proper Beamsville Bench white wine, even if it bears little resemblance to the Loire or Marlborough. Good on her, this angel, “she gives me kisses on the lips just for coming home.”  88

Michael Godel writes a mean tasting note! Not my style, but witty and stylish, although I don’t get the Jack Johnson thing. There is a Hawaiian musician of that name, but we have no way of knowing if he’s the one Michael Godel refers to. Quite frankly, my dears, I have little use, and perhaps even less tolerance, for obscure cultural references in wine notes.


Global wine shortage could be good news for struggling wineries

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The shortage of California wine is rippling through the system, causing serious if not quite catastrophic consequences.

Winery principles tell me that when their sales forces fan out across the country, buyers are unhappy at the lack of supply and in some cases are personally blaming the winery!

I’m sure that distributors as well as retailers both on and off premise find themselves in an uncomfortable position when wines they’ve sold for years are suddenly unavailable. Of course, the rational part of them knows that no one at the winery is responsible for short crops: Mother Nature is.

But there’s a vein of paranoia that runs through the end users of the three-tiered distribution system like a low-grade infection, and sometimes these buyers can’t be sure if the winery really is low on supply, or is just cutting them out and pretending to be short.

It’s bad for the winery. If buyers feel the winery is shorting them, they might turn to someone else they can get product from, thus terminating what might have been a long relationship.

We’ve all been reading about a wine shortage, for instance here and here, which cites BofA Merrill Lynch that “Global supplies appear to be tightening simultaneously,” with government policies in Europe and Australia deliberately discouraging production, while bad weather in South America had the same effect.

The problem is exacerbated by increasing demand from China for U.S. and particularly California wineries, some of whom are selling a surprisingly high percentage of their top wines there.

Several highly placed producers have openly fretted to me about the shortage, wondering what their companies are going to do. But the truth is, they have few options. They can’t turn to Oregon because crops there run so short due to natural circumstances. Washington has huge, fertile spaces in the east, but that state’s frequent hard winter freezes intimidate California producers, who aren’t used to having entire vineyards wiped out in a single night.

The 2012 vintage, California’s biggest ever, threw the industry a lifejacket, throwing it into temporary balance, but it probably won’t be enough to overcome the result of prior years of below-average crops, coupled with increasing demand. As Gomberg Fredrickson’s Jon Fredrickson told the Unified Wine & Grape Symposium earlier this year, “California ran out of wine.”

The result? Higher prices. The trend is especially notable at restaurants, where by-the-pour prices are inching up. It’s curious that all this is happening just as the country (and world) seems to be emerging from the Great Recession, putting a little more money into the average consumer’s pocket. Are consumers willing to dig deeper for their daily Pinot Grigio and Merlot? I expect they are–and that’s good news for wineries that have gone through the hell of the past five years, and survived.


My advice to the Chinese: don’t classify

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I was reading the other day that Ningxia, the Chinese autonomous region (roughly equivalent to a U.S. State) in north-central China, “will introduce the first winery-based classification system in China within the next few months.”

The article explains how there will be “6 classes in this classification.” The director of the governing body [of the] Ningxia Development Bureau for Grape and Flower Industry explained its rationale this way: “In order to ensure quality, we raise the bar for entering the classification.”

Ningxia, in case you don’t know, is China’s largest-producing wine area, with a continental climate. Summer highs run to 63-75 degrees, with moderate rainfall. The foreign wine community is interested. Earlier this year the Portuguese government invested millions in the Ningxia wine industry. French companies that have invested in Ningxia include LVMH and Pernod Ricard, according to Jancis Robinson.

Jancis titled her article “China’s most promising wine province?” (but note that hedging question mark). She recently went to her first Ningxia Wine Festival–only to find that “Riedel got there several days before me.”

And whither Riedel goeth, so goeth sales.

Ningxia’s largest domestic producers are Changyu and Dynasty, who together own 20,000 acres of vineyard land. Meanwhile, the China Petroleum and Chemical Corporation as well as the household appliance company Midea have begun investing in Ningxia’s wine industry. That oughta tell you how big the Chinese think this thing is getting.

I haven’t tried any Ningxia wines, but two years ago the Decanter trophy for red wine from the Middle East, Far East and Asia went to a 2009 Bordeaux blend from Ningxia province called Jiabeilan, produced by Chateau Helan Qingxue, which also won a silver for its Classic Chardonnay and a bronze for a Riesling.

But back to the point: does China need a classification system? Here’s China Daily’s argument that it does:

“it is still difficult for many Chinese customers to determine the class of that they are buying. According to knowledge of persons in wine business, this is due to the fact that nation-level wine classification does not yet exist,though some wine practitioners do follow their systems they developed on their own. It is obvious not convenient for general wine consumers.”

Given the notorious insecurity Chinese consumers experience about buying wine (unless it’s a world famous cult brand, which not even most upper-middle class Chinese can afford), it’s no wonder that local authorities will try to convey a golden halo on their wines, in the form of such classifications. There is, though, an arriviste mentality here: China is so anxious to be accepted on equal terms with the West that they’re importing our customs and traditions even before they have had time to develop organically.

China might take pause and understand the limits and dangers of classifying wineries. In France, it’s led to a rigid, price-based sclerosis that hasn’t really served the consumer. The Chinese might also look at California’s aborted attempts at classification. There was Roy Andries de Groot’s wackily ambitious 1982 effort, “The Wines of California.” The most notorious was Jim Laube’s 1989 attempt, “California’s Greatest Cabernets,” in which he created five “Growths,” like in Bordeaux. Jim’s intentions were honorable, but he proved, albeit inadvertently, that it cannot and should not be done.

And can you imagine the squeals of protest when some Chinese wineries are left off the classification list altogether, or earn a rank they feel is dishonorable? The Chinese no longer are a people to sit by mutely while “the authorities” make decisions from the top down. They want to have a say in things. For all these reasons, and more, I’d advise the Ningxia Development Bureau for Grape and Flower Industry to stay away from this sticky wicket. Let the market create the classification, not the government.


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