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French attitudes toward Napa Valley, plus comparisons of winegrapes to meat?

4 comments

 

It’s too funny, really. When I first started out in this biz, you couldn’t give Napa Valley wine away to the French. “Mais non!” was their attitude. It was vin de table, merde, Algerian plonk.

Some of us knew otherwise, and suspected that the French—so chauvinistic in the belief that no other culture could rise to their level, especially American culture—were simply whistling past the graveyard. After all, their run of dominance—lasting for centuries—had no assurance of lasting forever, and they were continually hearing California’s footsteps coming up behind them.

But now, listen to what the respected CEO of Moët Hennessey, Jean-Guillaume Prats, has to say about Napa Valley. He previously managed Cos d’Estournal, the Super-Second Bordeaux, which he took to new heights, according to Wine Spectator, so this isn’t merely some oddball voice out of France; his father, Bruno, owned Cos. So Jean-Guillaume is, in other words, the very establishment that once scorned Napa Valley.

Here’s what Jean-Guillaume said: “I do believe some of the great wine from Napa Valley will be the equivalent of the First Growths in years to come, not only in terms of price—it is already achieved—but in terms of perceptions, of quality, and in terms of being looked after and thought after by wine collectors around the world. So Napa, for me, is soon to become the equivalent of the great Medocs.”

Wow. They ought to put those words on a billboard right next to the “And the wine is bottled poetry” one on Highway 29. You wouldn’t need the whole quote: Just “Napa…the equivalent of the First Growths” would do it.

It doesn’t surprise me that the Bordelais are finally coming around to appreciating Napa Valley. After all, Christian Moueix and Baron Rothschild did it decades ago, visionaries that they were. What’s ironic is that nowadays it’s some Americans who continue to diss Napa Cabernet. Why they’re so stubborn in this attitude, when even representatives of the top French chateaux gaze with envy upon Napa’s near-perfect climate and soils, is beyond me.

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And now, from the Department of Ideas That Are Going Nowhere, let’s zip around to the other side of the world, Australia namely, where an article in the North Queensland Register is calling for wine grape prices to be more objectively determined, like meat prices.

Mr. Rob Hunt argues that, of all agricultural commodities, only the price of wine grapes “is determined using subjective criteria.” He contrasts this with “an objective system” of pricing, such as that employed by his country’s Meat Standards Australia system, in which, I gather, a short loin is a short loin no matter where it’s from, and priced accordingly. That is, indeed, an objective system. It is also very different from one in which (for example) a Cabernet Sauvignon bunch grown in Beckstoffer Tokalon costs much, much more than a similar bunch grown in Paso Robles.

But nobody ever said wine grape prices are objective. They’re not, because wine wholesale prices aren’t subjective. We pay for certain names and reputations, and I for one assume that more rigorous vineyard practices go into a highly-reputed wine than into an everyday one. So it’s not likely that we’ll be grading wine grapes the same way we grade meat anytime soon.

On the other hand, Mr. Hunt is entirely correct when he observes, I suspect there’s nothing more frustrating for growers than to see their carefully tended grapes dropped into the same receival bin as others of lesser quality.” That is a very sad situation for growers who work hard to grow quality fruit. We saw something similar happen in the early histories of counties like Santa Barbara and Monterey, where those grapes—fine quality for the most part—were shipped north or east, to be lost into vast blending vats destined for jug wines. The solution, as it turned out, was not to regulate prices, but to elevate the reputation of those counties, through small-production wineries making wines of critical esteem. You have to have the reputation first; then you can raise prices, not the other way around.

Cheers!


What does the Galloni purchase of Tanzer mean to wine criticism?

15 comments

 

It is, I suppose, the fault of the historian and logician in me that I’m always looking for the meaning of things. I’ve always thought that all things are connected in some mysterious way, and that certain events have implications, not only for how the future will unfold, but for trying to understand where we are now. Such an event is the purchase of Steven Tanzer’s International Wine Cellar by Antonio Galloni, which hit the airwaves yesterday via dueling press releases.

The context here is several-fold. One, both Tanzer and Galloni are enormously influential in this little world of wine criticism in which I and, I assume, most of my readers dwell. Antonio got his fame after being employed by Robert Parker to write for The Wine Advocate, which is how I met him (for the first and only time), at a tasting at the Culinary Institute of America, where Antonio was kind enough to give me a very long interview, which I turned into a three-part blog post. (Here’s the link to part one.)

I was very grateful to Antonio for that (he probably knew enough about me to know that my blog could be, ahem, a little controversial). I went away from that experience thinking what a gallant, intelligent and well-bred mensch Antonio is.

Tanzer I never met; not that I recall. But he’s always loomed in my mind because of the huge reputation he’d garnered among the people I respect: winemakers, sommeliers and folks like that. Tanzer’s name was one of those that mattered in high-class wine reviewing. So what I’m trying to say is that both Galloni and Tanzer earned my respect.

For years we’ve been tracking the evolution of wine criticism, the dualism of print journalism versus online, the gradual fading away of my Baby Boomer generation, and we’ve all tried to figure out what’s coming next. Who will matter? How will wine criticism and recommending work in the next decade and beyond? For me, a major question has been: Will there continue to be super-important critics (and their associated publications), or will wine critiquing become so crowd-sourced (due to the sheer magnitude of blogs) that no one voice will have national or international authority?

My answer to the latter question has consistently been: We will continue to have “important critics” because some fundamental part of human nature demands it. Humans want “authorities” to tell them what to buy, and to justify their tastes, especially in an area like wine that’s so confusing, subjective, emotional and, let us admit it, irrational. A few years ago, at the height of the blogosphere’s insistence that “critics don’t matter,” I couldn’t bring myself to believe it. It seemed to me to be wishful thinking on the part of the many (who wanted a piece of the action), against the power and influence of the few (of which, until last Spring, I was part). But I always thought that someone would take the place of the Parkers, Laubes, etc. of wine criticism.

Now, with this acquisition of Tanzer, it appears that Antonio’s Vinous is moving forcibly into a position of great influence and its associated power. I welcome this. Both men seemed marked by fairness and objectivity, and an indifference to external influence. Both men, too (as well as their teams) are profoundly talented. So we could be looking at the next great force in wine writing.

The one question that remains for me is whether or not this new Vinous will address itself chiefly to super-ultrapremium wine, or will examine wines from all price points. This is a decision, obviously, that Antonio and his business partners will have to address, and I hope they will review everything, from under $10 wines to the rarest and most expensive bottles. If my two cents is worth anything, that’s the way to go.

So it seems to me that the meaning of this marriage is that wine criticism is consolidating among a younger generation, who will continue to publish both online and in hard copy. The torch is being passed, folks, and IMHO it couldn’t be placed into better hands.


Here comes (probably sooner rather than later) the Petaluma Gap AVA

5 comments

 

The growers and wineries have been working diligently to get this largish region on the official AVA list, and since they’ve been doing everything right, far as I can tell, it shouldn’t take the multiple years it took for Paso Robles to finally sub-appellate itself. They’re currently getting the paperwork together for the TTB, and hope to get an AVA as soon as a year or two from now.

The organizers are the Petaluma Gap Winegrowers Alliance, which has been around for about eight years. Despite their map (sorry you have to crane your neck to read it),

The Gap

 

they warn the boundaries aren’t yet final, not just because of the usual who’s in, who’s out politics, but because the good ole TTB is giving people a hard time about new AVAs that overlap with existing ones, and the northernmost part of the proposed Petaluma Gap does include that new southern stretch of the Russian River Valley. So nobody knows what will happen with that, although if they have to revise the boundaries around the RRV extension, it would eliminate one of the more important parts of the Gap, home to many well-regarded vineyards.

It’s a cool-climate growing area, although not that cool: warmer than Carneros, which itself is warmer than Santa Maria Valley. Still, the Petaluma Gap clearly is Pinot Noir and Chardonnay country, with Syrah thrown in for good measure. At the Alliance’s tasting yesterday (held at the gorgeous Golden Gate Club in the spectacular Presidio National Park, with such dramatic views of the Golden Gate Bridge and the spires of San Francisco), the Syrahs were outstanding and so were the Chardonnays. The Pinots, less so, but then again, this is Pinot Noir we’re talking about, the heartbreak grape. I particularly liked the more delicate ones, for instance Greg LaFollette’s 2012 Sangiacomo and Keller’s 2013 El Coro. Some of the bigger ones, like the Kosta-Browne 2012 Gap’s Crown, were a little too extracted for my tastes.

The Alliance said they’re trying hard to pinpoint a “Petaluma Gap” style or flavor, but I have to say this is going to be hard. The region clearly is a high-rent district: the wines, red and white, have great acidity, are ripe and balanced, with silky tannins and, in the case of the Pinots, frequently with an earthy, Bay leaf-herbal tea-tomato note. But you could say that about lots of Pinot Noirs from other places. On reflection the Chardonnays were perhaps the standouts: dry wines, rich and tangy in acidity, bright in fruit and minerally. Once again Greg LaFollette’s entry stood out: his 2012 Sangiacomo was, I wrote, “Grand Cru quality.” I also liked the Fogline 2013 and the Keller 2013 La Cruz. But some of the other Chardonnays were just too oaky, which is the fault, not of the Petaluma Gap, but of the winemakers.

The TTB requires AVA applicants to explain what makes their region singular, and in this case, the Alliance people said it’s not the fog and it’s not the soils, it’s the wind. The “Gap” refers to an opening in the coastal hills, roughly between Bodega Bay in the north and Dillon Beach in the south, where the winds rush in before hitting Sonoma Mountain,about 20 miles inland, from where they go north up to Cotati and south towards Carneros and San Pablo Bay. The AVA, as proposed, will be a big one, occupying roughly the entire southern third of the Sonoma Coast AVA, and spilling a little bit into Marin County. In the west the boundary line would extend to the coast. My friend Charlie Olken asked why they drew the line all the way out to the sea, when it’s clear nothing will grow out there except artichokes and onions. I’m not sure the Alliance people answered that, except to say there may be little pockets here and there where growers could persuade Pinot and Chardonnay to grow, even if it’s just for sparkling wine.

The Petaluma Gap contains about 80 vineyards and nine wineries, although lots of wineries source fruit from there. I must say, judging by this tasting, that I’m heartily in favor of this new AVA. Not all AVAs make sense, goodness knows, and the Petaluma Gap as presently conceived is a little too big for comfort. Yet goodness knows it’s more intelligently crafted than Sonoma Coast was (and is), and represents a big step in the right direction for the future of Sonoma (and Marin) county winegrapes. So kudos to the Petaluma Gap Wine Alliance for going about this in a smart way.


NIMBYism? Or just plain common sense?

7 comments

 

COPIA crashed and burned pretty spectacularly. Some said it was because the location—on the “wrong” side of the Napa River—was ill-chosen. Others said the concept itself never made sense: What was COPIA anyway, a restaurant? Wine tasting place? Museum (and a pretty boring one, at that)? Turns out, COPIA did have an identity problem, and the location was a little out-of-the-way, so it was probably a combination of all factors.

Now, a Napa developer has applied to Napa City to build “a large event center and winery” at the well-traveled corner of Trancas Street and the Silverado Trail that would offer “wine tasting, a deli, gift shop, restaurant, offfices, meeting rooms and a wedding site,” not to mention “extensive outdoor areas for public gathering.”

Sounds like the only different between the proposed Altamura Wine Center and COPIA is that the former won’t have a museum. And it’s in a different, more crowded place.

The proposal has caused lifted eyebrows throughout the valley, as you might expect. Of the 23 comments published in the Napa Register as of yesterday, 15 were against, six were for, and two fell into the hard-to-tell category. Most of those opposed cited several reasons: increased traffic, earthquake and flood dangers, and overall resistance to further development in Napa Valley, which has been anti-development for decades.

NIMBYism isn’t new to Napa Valley, or to wine country in general. Remember the furor over Larner Winery’s now-failed plan to build a center for guest events? The neighbors rose up in arms and killed that one. My personal view, for what it’s worth, is that these things are best left to the locals, but those locals should take as broad a view of things as possible and make sure they’re not against something just for the heck of it. A little development is good for us all. Napa Valley survived the Wine Train, which lots of people predicted would be a horrible thing; and if the Altamura Wine Center eventually is built, Napa will survive that, too. Although I will say that it’s true that that particular corner of Trancas and Silverado Trail can get pretty crowded.

I liken this to my own reality. I live in a very dense, crowded urban neighborhood in Oakland. There’s talk of building a new Oakland A’s stadium nearby. I realize it will increase traffic, noise and a bunch of other hassles, but at the same time it would be good for the local economy. So I’m in favor.

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By the way – was this guy deceived, or was he just woefully ignorant? I’m thinking the servor who said “thirty seven fifty” was at fault. What do you think?


O.K. , you have your social media data. Now, what good is it?

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I asked it six years ago, five years ago, four, three and two years ago, and I’m asking it now. And it’s not just me: That bastion of U.S. capitalism itself, the Wall Street Journal, is asking the same question. Under a five-column headline in last Monday’s Marketplace section, they wondered “What is all that data worth?” (The online version of the article has a slightly different headline.)

The “data” they’re referring to comes from “companies [that] traffic in information and use big-data analytic tools to find ways to generate revenue.” If that sounds familiar, it’s because it’s been the underlying theme of every conversation about the revenue-generating possibilities of using social media.

We know beyond a doubt that the metrics of social media use are huge. Everybody is Facebooking, tweeting, Instagramming, pinning and so on. They’re liking and following and retweeting each other like crazy. For this reason, wine companies feel, with “the fierce urgency of now,” that they have to get onboard, before the train leaves the station. And indeed, as I’ve argued for many years, wineries should board that train. As I’ve suggested to anyone who’s ever asked (and quite a few who haven’t), winery personnel should engage in social media to the extent they feel capable of doing it.

But what I’ve wondered since Day One is what all these metrics, which are easy enough to obtain, mean. Reach, followers, friends, engagement, acquisitions, referrals, hits, unique visitors, bounce rates, click-through rates, conversions and all other ways to track activity—companies, including wineries, are pursuing them with a vengeance. Yet “The problem is that no one really knows what all that information is worth,” says the Wall Street Journal article.

Such data is called an “intangible asset” because, unlike real estate, durable equipment and money in the bank, it has no objective value. This is not to suggest that data is valueless. As the article explains, data has value because “it allows [companies] to tailor their products and marketing to consumer preferences.” For wineries, though, what does this mean? It’s not at all clear that counting your Twitter followers, or measuring your online engagement rate, suggests anything at all in terms of strategy. “The squishy world of intangibles,” writes the Wall Street Journal, means that “Data is worthless if you don’t know how to use it to make money.”

That statement is patently true on its face. But there’s a more fundamental question: What if social media data, in and of itself, is incapable of being used to make money? Even if real-time data gives you some true insight into your (potential) customer’s online behavior, “Information on individual users loses value over time as they move or their tastes change,” making data “a perishable commodity.” Data looks real and solid enough: after all, what can seem more representative of reality than numbers on a page or screen?

But as we all know, statistics can be slippery or, to use the Journal’s word, “squishy.” I used to get in trouble with some of social media’s adherents by asking them how they “knew” that engaging in social media made money. The answer always was a form of “We can’t prove it, but we somehow believe it.” Occasionally, someone would cite a winery that was doing social media bigtime and whose sales were rising. But even if the connection between doing social media and selling cases could be established directly (which it couldn’t), I always wondered if the winery’s success had legs—if it could be replicated over time, because, after all, any winery can have a good quarter, but wind up on the butcher’s block.

Lest any of this be interpreted to suggest that I don’t think social media has value, or that every winery shouldn’t be exploring it, let me go on the record: If you’re a wine company, you should be doing social media. Period. End of story. What I am saying—or, really, asking—is the same question I’ve posed since 2008: What is all that data worth? If you don’t like the question don’t blame me, blame the Wall Street Journal’s headline writers for coming up with it in the business paper of record.


Some execs are “worried,” but really, there’s nothing to worry about wine’s future

12 comments

 

Nobody asked, but here’s my two cents on “top Golden State vintners [express] concern about the future of the $23.1 billion industry, especially among the discerning millennial market.”

That’s from Tuesday’s Santa Rosa Press Democrat, which reported on “a UC Davis survey of 26 senior executives” in the state, and found that “Everyone was a little bit worried.” Those execs included Joseph Gallo, from you know who, Jay Wright (Constellation) and my own boss, several levels up, Rick Tigner.

Seems the chief worry is “the intrusion into the wine category of spirits and craft beers,” according to the guy who conducted the survey, the well-known emeritus of Davis’s Graduate School of Management, Robert Smiley (who I had the pleasure of interviewing numerous times during my magazine days).

What do the execs base their impressions on? One of them said more “people are starting out with craft beers and then as dinner goes they switch over to wine.” I suppose this does “rob” the industry of that extra glass of sold wine. I like to start the evening out with a cold IPA, especially when the weather is warm, but that doesn’t stop me from consuming my share of wine. Still, I can see that if the theoretical consumer used to drink three glasses of wine at night, and is now drinking just two, with a bottle of beer making up the difference, that represents a 33% decrease in consumption.

Another exec wrote that he and his wife “have been having more cocktails than we’ve ever had in the past…”. That too, the exec speculated, “is maybe taking a little bit of the wine-by-the-glass business away.”

Then there’s the liquor store owner who said,“Ten years ago we were about 70 percent wine. Now we are down in the 60s.” Even with increased wine sales in the U.S., the execs are troubled by this nibbling away at the margins.

I have several reactions. One is that, after following this industry for more than 30 years, I’ve seen multiple times when winery execs were afraid that the sky was falling. It never did. Here in California, we’re coming off several boom production years (despite the drought) and quality has never been higher. Profits seem to be up everywhere at well-run companies, the mood is optimistic among employees, and with all the bashing California wine gets from certain quarters, it remains the best seller in America. Prices continue to rise, and where wineries are holding the line, they’re feeling pressure to increase—if only slightly—the cost of cases. That wouldn’t be happening if wineries felt truly threatened.

It is true that beer and spirits consumption is on the rise, but my feeling is that we’re becoming more of an alcohol-drinking country, so a rising tide lifts all boats. It’s also true, as I’ve insisted for years, that wine is fundamentally different from beer and spirits. Wine signifies aspiration. Beer never did; it signified only getting drunk. Neither did spirits signify anything, except a quick buzz at the end of the work day. Now, that is changing, because the craft beer and spirits producers have stolen from wine the concepts of lifestyle and aspiration that have always fueled wine. It is now possible to drink (as I do) great craft beer and spirits and appreciate them, not only for alcoholic punch, but for complexity, deliciousness and even (dare I say it?) intellectual interest. But I still believe aspiration goes along more with wine than any other drink. And America is an aspirational country.

What then for the wine industry? It can’t become complacent. It has to continue to appeal to its existing consumers, and not alienate them, as it learns how to reach out to younger Millennials. The messages and the products therefore must be extremely well-thought out and crafted with precision. But successful wine companies know how to do that. Believe me, they’re working overtime figuring this stuff out. If I were a betting man, which I’m not, I’d put my chips on the wine industry. Spirits seem to come and go in America; their fundamental problem is that they’re simply too strong for millions of people to drink on a regular basis, throughout the meal, for the rest of their lives. Beer always stays popular, but it’s craft beer that’s got all the excitement now, and craft breweries are small; they do not, I think, represent a threat to the wine industry in the long run, although some stores are giving them increased shelf space.

Wine, by contrast, has staying power. There’s a reason it’s been top beverage in the western world all these centuries, and is now becoming top beverage in the developing world, too. Human nature doesn’t change; wine is more consonant with human nature’s aspirational elements than either beer or spirits. It’s the Goldilocks of alcoholic beverages: not too strong, not too weak, just right. Am I an admitted booster? You bet. But that doesn’t make me wrong.


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