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Some lessons learned from the first decade of the 21st century

Tuesday, November 24th, 2009

Hard to believe in just 37 days the first decade of the 21st century will end. Seems like only yesterday we were partying like it was 1999 (wait, it was 1999) and in a panic about the Y2K meltdown. Now here we are on the verge of 2010. In the blink of an eye, a decade has flown by.

It’s been ten years of discontinuity and discombulation for everything in America, and that includes the wine industry. I went back to review some things I wrote for Wine Enthusiast back in 2000, to see what we were thinking and talking about then. The wine market was, of course, robust in 2000, coming off the previous decade of up, up and away. In August of that year I wrote a column that reflected on the historical swings of the Bordeaux market over the preceding, well-documented two centuries. “Switch now from Bordeaux to California, and especially Napa Valley,” I said. “Many of the top wines, particularly Cabernet Sauvignon, have doubled in price since 1990…the price of many, if not most, expensive wines has got to come down, and will…If you don’t believe that the world’s most prestigious wines can suddenly, exuberantly collapse in price, just read ‘The Wines of Bordeaux’ and find out.” That book, by Eddie Penning-Rowsell, traces the sine curves that Bordeaux prices always have described.

The dot-com bust and Sept. 11 dealt blows to the wine industry, but nothing like the staggering knockdown that the Great Recession of 2008-2009 delivered. I still see “suggested retail prices” of $100, $150, $250 for certain Cabernets, but frankly, I don’t believe them. A winery owner can claim to be asking (and getting) triple-digits for his wine but that doesn’t mean he is. So I was right that prices would collapse, but it’s a prediction anybody can make, at any time, because sooner or later, prices always tumble. But that has never stopped certain people from trying to talk prices back up, as for example this article from Investors Chronicle, which argues that “the market for quality wine has enjoyed a rapid turnaround” and cites somebody from something called The Wine Investment Fund as saying that fine wine “has earned it[s] place alongside gold, equities, bonds and other assets in an investment portfolio.” We may forgive The Wine Investment Fund, which is based in London, Bermuda and Hong Kong, for hyperbole, since it’s hardly a disinterested party.

I asked, also in a 2000 column, the following question: “Have you noticed that wine is getting sweeter and softer?” Apparently, I had, although 2000 was a little before I remember actually becoming convinced that California wine had a real problem, namely lack of acidity and excessive residual sugar. Later that year I wrote a little story about Jess Jackson stepping down as Board Chairman of Kendall-Jackson, and quoted him as saying, “I’m seventy. I’m retiring.” Some retirement! But along less happy lines, at the end of 2000 I reported on the news that Robert Mondavi Winery had “extended its reach to a fourth continent, Australia,” with its announcement of a joint venture with Rosemont. In retrospect we can see that this really was an early warning sign of the winery’s impending demise, caused by the hubris of exalted ambitions. RMW’s actual death dragged on for another four years, but finally occurred in December, 2004, when the company was sold to Constellation.

Several conclusions can be drawn. Wine prices are down now, but unless this is the End of History they will rise again, pace Penning-Rowsell, although it could take a while for the high end to recover; there were eras when Bordeaux took decades to come back. Softness and sugariness remain stubborn problems in California wine, but there’s evidence that that trend-line has peaked, thankfully (although it’s a Dracula that threatens always to rise again from the grave). Jess Jackson happily remains with us, at the helm of a great wine company. And the unhappy experience of Robert Mondavi should be a warning sign to ambitious empire builders. What are its lessons? Be careful what you wish for because you might get it. The Devil’s in the details. The bigger they are, the harder they fall. Dot your i’s and cross your t’s. The fundamentals still apply as time goes by.

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And speaking of the second decade of the 21st century

The world will have heard by now that Gary Vaynerchuk has won Wine Enthusiast’s “Innovator of the Year” Wine Star Award for WineLibrary TV. I am personally thrilled by the prospect of finally meeting Gary when we all gather, in black tie, at next year’s gala ceremony, at the New York Public Library’s 42nd Street branch. I feel like I know Gary from his comments on my blog, and he is obviously a force to be reckoned with as we head into the two thousand and teens. Congratulations to Gary and to all the Wine Star Award winners!

GaryV

A wine point-scoring system — from 1892!

Monday, November 23rd, 2009

Wes Hagen, at Clos Pepe, sent me (and also Mr. Laube) a PDF of an old wine book he stumbled across. “It’s an 1892 book on the evaluation of wine, written in CA!,” Wes wrote. “Note his suggestion of a 6 point and 10 point wine evaluation scale.  I’m sure you guys get questions all the time about ‘points’—it may be the idea’s been around for longer than 100 years.”

The book, published in 1892 by the University of California’s Viticultural Section (in its pre-Davis, Berkeley era), is entitled WINE: Classification – Wine Tasting – Qualities and Defects. Yet it was written, not in California or by a Californian but an Italian (Grazzi-Soncini), and happened to be translated by F.T. Bioletti, the polymath whose work at U.C. included classifying vinifera grapes in California, founding the school’s grape breeding program, and research into grape diseases. He also was the V&E department’s first chair.

Grazzi-Soncini begins by making a vital distinction between “the taster” and “the chemist.” The former is able to make inferences about wine’s quality and defects, even without a thorough understanding of “the physical components of wine,” while the latter “is limited to making a diagnosis,” which Grazzi-Soncini implies is not particularly useful for the wine drinker or wine seller. He then lays out his own classification system, dividing wine into “High-class Wines” (Lafite, la-Tour [sic], certain Chiantis), “Fine Wines” (Saint-Julien, St.-Estephe), “Fine Common Wines” (“produced in large quantities in Italy”), and “Common Wines, or Wines of the Plains,” which are for “the working classes.” Finally there are “Low-grade Wines,” of which the less said, the better. So once again we see the universal need, which seems always to have existed, at least since the Greeks, for classifying wines.

Having set the stage, Grazzi-Soncini now moves to his chapter on “Tasting.” His cogent point is that “Any one can say whether a wine pleases him or not” but “only the experienced taster can pronounce with any degree of certainty…”. Without “long practice” the “somewhat difficult art” of tasting “cannot be acquired” (which will frustrate some of my young blogger friends but is inescapably true).

Grazzi-Soncini’s 10-point scale, like his classification system, also testifies to the need in the human soul or mind for hierarchies and tiers, of which the 100-point system (actually in Wine Enthusiast’s case a 21-point system) is merely an elaboration. I quote from Grazzi-Soncini:

10. Perfect.
9. Almost perfect.
8. Quite good.
7. Relatively good.
6. Fair; sound, but not harmonious.
From 5 to 0 indicates various defects, according to their gravity.

(Could this have been the origin of the famous U.C. Davis 20-point scoring system?)

Grazzi-Soncini reserves his longest chapter for wine defects. Then, as now, it was more difficult to pinpoint why a wine is good than explain why it is not. When a wine is good, all you can do is use qualitative adjectives, such as “Perfect” or “harmonious,” which really have no meaning at all to anyone, unless you know what they mean or think you do. It is much easier to explain that a wine is, for example, “decrepit” and “past its prime” because it has lost “all, or nearly all, of [its] color” and become “disagreeable” in bouquet and “vapid, flat, insipid” in the mouth. (All italicized descriptors are Grazzi-Soncini’s.)

If Grazzi-Soncini were involved in the conversation or debate that occurs frequently here on my blog in the Comments section, I think he would side with those who say a wine taster doesn’t need rigorous scientific training or academic winemaking credentials to be good at his job. Rather what is needed is, as I have quoted, “long experience,”…“a clear eye [and] very delicate organs of taste and smell.” Here’s a key phrase: “When the last two organs [i.e. taste and smell] have the requisite sensibility, practice alone is necessary to give [tasters] the skill needed in tasting a wine.” Not viticultural and enological aptitude; not a thorough knowledge of wine chemistry; not even (dare I say it?) a moment of work-time in a winery. A sharp eye, nose and palate, and long, practical years of experience: that’s what it takes to be a good wine critic.

Three — count ‘em, 3 — for the price of one!

Sunday, September 27th, 2009

Hey, who says you don’t get your money’s worth for this blog? Here’s a Threefer.

1. Talkin’ Sonoma County

Somebody from the Sonoma County Wine Library called the other day to do a little phone interview with me. She wanted to know, basically, how I thought the Sonoma County Wineries Association could do a better job of marketing and promoting Sonoma County wines. My answer was: it can’t.

This stuff is going to appear in print someplace. The interviewer sent me a draft of her article, and while I completely approve it, and am sure I really said all the things she quotes me as saying, I want to put my remarks in context. This was, after all, a long conversation we had, and the quotes were preceded and followed by other statements that gave more complete meaning to them.

(I should add that, as a news guy myself who’s conducted literally thousands of interviews over the years, not just with wine industry people but with cops, politicians, business tycoons, lawyers, doctors, crime victims, artists, judges, kids, dying people, you name it, I understand the challenges of getting quotes right, and of presenting them in a way that doesn’t distort their intended meaning. It can be difficult.)

So here are the quotes, with my amplifications.

1. “Sonoma County should not market itself as a region. The only region that means anything to anyone,” Heimoff says, “is Napa.”

What I meant: What I was saying was that I don’t think the words “Sonoma County” have much meaning to the average wine consumer. They do to people in the know, like you and me, but we’re not average consumers. To me, “Sonoma County” is a virtual guarantee of quality, of good viticulture and enology, of smart, hard-working people. But to most Americans, it’s like, “What part of Napa is Sonoma in?” They just don’t get it, and I don’t know if they ever will. So I’m not saying Sonoma “should not” in the moral, prescriptive sense of “Thou shalt not kill.” It’s more like I’m saying, “I wouldn’t spend a whole lot of marketing money promoting Sonoma County, because it’s not likely to be effective.”

2. He believes Sonoma was, “very promiscuous in the 80s in developing its AVAs.” Napa “was deliberate and said it did not want to rush. Sonoma is now paying the price,” he believes, with too many AVAs which mean nothing to the consumer, though an AVA like Russian River, he declares, has been very adroit in its marketing.

What I meant: Sonoma rushed out in the 1980s making all these AVAs before the terroir was properly understood. That caused bafflement, even among wine writers, but it also robbed the “Sonoma County” brand as a whole of the potential for respect and recognition, and fed (or attempted to feed) that energy into the sub-AVAs. Trying to promote “Sonoma County” now is a little like trying to put Humpty-Dumpty back together again.

3. Much more important, he says, for Sonoma’s future is that, “people buy brands. In fact, brands are the only thing that people look for. I think in tough economic times people tend to stay with what they know, so to me, that would bode well for some of the more reputable brands in the country.”

What I meant: With hundreds of wineries in Sonoma County, they’re not all going to succeed, even if the public suddenly starts thinking that Sonoma County is the greatest thing since sliced bread, which they won’t. No, the most visible, respected brands will sell because people know and trust them. At the high level, a Williams Selyem doesn’t have to rely on a relationship with Sonoma County; people line up to buy it because it’s a brand. The same goes for Chateau St. Jean or Sebastiani or Geyser Peak; people buy the name, not the grape source. In Napa Valley, it’s a little different; people are so mesmerized by those two words, they believe anything from Napa Valley has to be great, which of course is nonsense.

4. “Newer vintners need to be aware they will have to build their brands by getting high scores for their wines from good critic. There is nothing,” he says, “that moves bottles off the shelf better than a high score from a reputable critic.”

What I meant: This would be self-serving if it weren’t true. The single best way for a winery (especially an unknown or little-known one) to sell wine is to get a high score. We can argue about who’s a “good critic” and who’s not, but not today. Put it this way: Which will sell more wine, an Enthusiast 100 or a Sonoma County AVA? Duh.

5. His tough-love wisdom at the moment: “Focus. It’s hard right now. And it’s every brand for itself. It’s definitely dog eat dog out there.”

What I meant: Exactly what it says. Woof woof.

2. Wine Fraud hits Canada, no longer limited to Europe

I’m continuing to read and enjoy Benjamin Lewis’s “What Price Bordeaux?” book, which is a romp through everything you ever wanted to know about the great wines of the Left and Right Banks. Each chapter is immensely interesting in its own right. I’m up to “Plus Ça Change” — “the more things change,” as in “the more they stay the same — which is about fakery, fraud, aduleration, mislabeling, and the entire Rogue’s Gallery of crooked practices which seems to have infected the world of fine wine forever.

When I was reading the chapter on Sunday morning I wondered if fakery exists in California. Just a little while later I sat down at the computer, went to Meininger’s Wine Business International to check on the day’s news, and saw this headline, from The Vancouver Sun: Canadians react angrily to faux wines.

Seems that some pretty big wine companies “buy bulk wine from cheap sources outside Canada, bottle it here and sell it in the B.C. [British Columbia] Wines section of government liquor stores.” This “could even be a violation of the criminal provisions of the federal Competition Act [and] at the very least it’s unethical.” Some of the wine apparently is labeled “Cellared in Canada” which, apparently, does not mean that the grapes are from Canada, although the average consumer might be forgiven for thinking so.

This brouhaha brings to mind the famous WineGate Scandal, which Lewis recounts in Plus Ça Change. In the mid-1970s, a negociant house bought cheap Vin de Table red wine. He also bought some real AOC Bordeaux white wine. He then changed the color of the wine on the paperwork for his AOC Bordeaux from white to red, which allowed him to sell it for much more money than a table wine would fetch. Of course, he had to correspondingly lower the price on his white wine, since it was “demoted” from AOC Bordeaux to Vin de Table. But he still made “several million francs of profits in a period of four months” before the fraud was discovered by shocked, shocked authorities. (Only the previous year, the President of the INAO, the AOC’s governing body, had insisted that “Our system of control has been perfected so that [fraud] is impossible.”)

So it can happen in Canada. But here in California? Well, we all remember that in 1994, Fred Franzia “pleaded guilty to conspiracy to commit fraud with Bronco by falsely labelling grapes,” according to the story about him in last May’s edition of The New Yorker. But that was 15 years ago, and to the best of my knowledge, California wine has seen no fraud since. Every once in a while the question arises of whether or not wineries send critics like me “special” bottles for review — bottles that aren’t the real wine — and while it wouldn’t surprise me if that were true, there’s no way to know. (All you investigative bloggers out there, here’s the route to stardom: Find such a case and bring the winery down.) There are, of course, rampant tales of fraud in the wine auction and old bottle communities, but I can’t get too upset about that, since it doesn’t impact 99.9% of consumers.

I think the Franzia case was a shot across the bow to California (and American) vintners, a warning from federal law enforcement officials that they won’t tolerate such outrageously deceptive practices. Perhaps far more interesting than outright fraud is adulteration — the “improvement” of wine by adding chemicals for flavor, texture and the like. Although the practice is frequently deplored by winemakers, it’s widespread, and there are currently no regulations, state or federal, to disclose them to the public. Should there be? I don’t know. How many more words can you squeeze onto a label? They’re already getting pretty crowded. Maybe wineries could make the information available online.

3. How to make cult wine and be graceful

And speaking of Plus Ça Change, I read with great interest yesterday’s front page article on Dick Grace in the San Francisco Chronicle, in which Mr. Grace skillfully administers the coup de main to the dozens of Napa Valley cult wines that regularly exceed the $225 price tag on his Grace Family Cabernet. The Chron’s wine editor, Jon Bonné, wrote that Grace “is credited with creating California’s first cult Cabernet,” a citation that may be undermined by the craze that attached to Joe Heitz’s Martha’s Vineyard Cabernet Sauvignon when that wine first appeared in the 1960s. But it’s true enough, and the point is that Mr. Grace views the metastasis of cult Cabs with some proper skepticism. He told Jon, “We have to get over what I call the trophy mentality,” and Jon quoted his wife, Ann, as saying that some of the newer cult wines say more about “an address” than anything else.

Well, I can’t argue with that. I don’t taste all the Napa cults but I do taste a lot of them and I can unhesitatingly say that your quality-price ratio is poor in many cases. (The Napa Valley Vintners kindly invited me to a private tasting of cult wines I don’t routinely get to taste. The tasting is Nov. 5. I’ll be reviewing the wines, blind and formally, for Wine Enthusiast, but I should be able to write about the tasting here.)

You can agree or disagree with Mr. and Mrs. Grace — I tend to agree — but what struck me, when I thought about it, were the parallels between their attitude toward the newby cult Cabs, and the way that some of the older, Baby Boomer wine critics view the younger bloggers. Not to paint everyone with the same broad brush (something I’ve been accused of), but you can say generally that some of the older writers saw the younger bloggers as upstarts, not fully qualified, yet out there making statements anyway. That’s kind of like the Graces saying that some (not all) of the newer cult wines are wannabes rather than proven commodities.

Are the newer cult owners resentful that the Godfather of Cult Cabs, Dick Grace himself, faulted them? Maybe there’s been some grumbling. The Chronicle is Northern California’s largest newspaper, and this article was on the front page of the Sunday edition, meaning that a lot of people read it. But if they have hurt feelings, I doubt if they’ll express them in public. Besides, I have to think that many of the newby cults know, in their heart of hearts, that what Mr. and Mrs. Grace said is true. These overblown wines, crafted with the help of hired celebrity winemakers and grapegrowers, are “marketing tool[s], as opposed to wines with a distinctive character,” as Mr. Grace asserted. The pendulum indeed “has swung too far.” And in at least one other aspect, the Graces are attempting to make up karmically for the wealth and luxury that their lives have accorded them. A Buddhist and follower of the Dalai Lama, Mr. Grace contributes large sums of money to humanitarian causes. He calls this act of charity a “self-correction” after realizing that there is a higher purpose than wealth or fame. It’s enormously gratifying to hear him concede that the prices his wine commanded were “an extension of my overblown ego” and to see him making up for it.

Maybe Mr. Grace could hold Buddhism classes for his fellow cult wine producers in Napa Valley and elsewhere. They have a lot to learn from him.

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R.I.P. Agoston

Thursday, July 2nd, 2009

He was “the father of California wine,” and July 6 is the 140th anniversary of Agoston Haraszthy’s untimely demise.

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Born to a noble Hungarian family in 1812, Haraszthy sailed for New York in 1840, in search of his future, and embarked upon a tour of America, which included a visit with President John Tyler “in my full Hungarian Guard dress uniform,” as he reported in his 1844 book, “Travels in North America.”

Hooked on the new country, Haraszthy settled in Wisconsin for a few years, but something lured him westward: the California sun and the future state’s golden allure, already being reported to the outside world. On Christmas Day, 1848, Haraszthy, his wife and their six kids set out for California, traveling along the Santa Fe Trail and reaching their destination nearly a year later. The family struck down its roots in San Diego, where an important event occurred: he was introduced to local grapegrowing and winemaking by the Spanish padres, who acquainted him with the Mission grape. “Haraszthy quickly noted its defects and became convinced that plantings of nobler varieties could be commercially viable,” writes a biographer, Robert Lawrence Balzer, adding, “He sensed that by planting vines brought directly from Europe, he could realize his old dream of producing wine of a quality that could complete with good Hungarian and other European wines.”

Haraszthy made good in San Diego, getting elected Sheriff and, following that, to the State Legislature, which at that time met in the city of Vallejo, just south of Napa Valley. That brought Haraszthy into contact with Northern California, which he realized was the best place to grow winegrapes. He purchased, in 1852, a plot of land in San Francisco’s Mission District and planted several hundred acres, but it wasn’t long before he discovered that San Francisco’s cool, foggy climate could never ripen grapes. One thing led to another, and in 1857, General Mariano Vallejo, the leading vintner in Sonoma County, invited Haraszthy to visit. “With his first glimpse of Sonoma Valley,” Balzer writes, “[Haraszthy] sensed instantly that his long search had ended.” Haraszthy bought 6,000 acres at the foothills of the Mayacamas Mountains and planted his estate, which he named Buena Vista.

It was, of course, Haraszthy’s 1862 book, “Grape Culture, Wines and Wine-Making,” which he wrote as a report to the Legislature, that made Haraszthy famous. That, and his importation to Buena Vista of hundreds of thousands of cuttings of 1,400 different varieties he gathered on his tour of the winemaking regions of Europe.

Haraszthy loved California and was the first great believer in its future as a world-class wine-producing region. “The California climate, with the exception of the sea-coast, is eminently adapted for the culture of grape-vines,” he wrote in his book. “…[T]here is no doubt in my mind that before long there will be localities discovered which will furnish as noble wines as Hungary, Spain, France, or Germany ever have produced.” Haraszthy was far ahead of his time; for all the talk about mountain vineyards and volcanic soils we hear today, one is amazed to hear Harasthy recommend that vintners “look for a soil which is made by volcanic eruptions, containing red clay and soft rocks…This kind of soil never cracks, and retains the moisture during the summer admirably.”

Haraszthy died in Nicaragua on July 6, 1869, reportedly eaten by crocodiles. I wish he could be around today to see how his hopes for California wine have been realized many times over. He is one of the giants of California wine, on a par with Robert Mondavi and Andre Tchelistcheff, the kind of person the wine industry produces only a few times a century.