Those who read this blog and hear me speak know that I have been predicting the discovery or uncovering of small, stellar blocks within existing great vineyards in California and Oregon—blocks that can be called “grand crus” were we to adopt that French terminology. This process will take decades, but clearly it’s underway.
I have argued that this evolution of a vineyard into greater and lesser blocks or climats is inevitable. It happened in France and in Germany, and for the best of reasons: grower/vintners, usually monks, discovered over hundreds of years that some sites were naturally superior to others. These, they gave special names to, and when a market-based system of supply-and-demand replaced the old feudal system, these special blocks were prized, and priced, the highest.
Why this development is inevitable and unavoidable is because of the nature of wine: something in it, and in us, makes us sensitive to the slightest differences. We seek those differences, make judgments as to their relative merits, collectively decide which blocks are the best, and reward them, as the free market allows and even encourages.
Is this rewarding, this hierarchizing, justifiable? Is it based on true qualitative differences in the wines, or is it only the critical perceptions that we know can be shaped by marketing? Undoubtedly, a little of both. Great marketing cannot make a silk purse of a sow’s ear. It can, however, take two silk purses, both near each other in quality, and make one Prada and the other Sears.
As if in evidence of this line of thinking, Domaine Trimbach, the well-known Alsace winery, just announced that, for the first time, they are taking advantage of Alsace’s Grand Cru appellation system to market their wine, something they have been reluctant to do until now. Why? “[W]e cannot today escape the grand cru any more because with all the media, with all the fuss and the buzz and whatever around the system,” says Jean Trimbach. Around the world, he argues, people know the names of the Alsace Grand Crus and demand them. The implication is that it’s not because a Grand Cru is better than a regular Alsace AOC wine, it’s because people “know exactly what the top grand cru[s] are, so you cannot escape the grand cru game any more.”
The grand cru game…is that all it is, a game? Is there any relevance to inherent quality? Or have the Alsatians, like the Bordelais and the Burgundians, been hoisted on a petard of their own making?
Being a fair-minded journalist, I must admit that the answer is not that simple—although we all wish it were. Those of us reared in this “game” of comparative terroirs have it emblazoned into our DNA that some plots are better than others. To deny that this is true is one of the few heresies of wine connoisseurdom. This is why land in Vosne-Romanée is much more expensive than land in Beaune, why land in Oakville is much more expensive than land in Paso Robles, even though, in a blind tasting, I can assure you that some Paso Cabs would give Oakville a run for its money.
Indeed, such is the power of appellation—or, I should more correctly say, the awareness of appellation—that we have a situation in which the price for an acre of “the choicest land” in Napa Valley is now $310,000, up a remarkable $40,000 over 2014.
“The wine grape vineyard market continues to operate in a universe of its own,” says an expert in land prices in yesterday’s Napa Valley Register, referring to a phenomenon known as “the pedigree of the parcel,” in which the “pedigree” is conferred as much by subjective factors as objective ones—and perhaps even more so.
Once a vineyard has been prized so astronomically, there’s only one direction to go: To find little pieces within the vineyard that can be priced even more astronomically. This is the basic duty of capitalism: to test what the market will bear. And, as another expert in the Napa Register article said, “Actual sales [i.e. prices] can go even higher.”
In other words, unless there’s a bubble—and I don’t see one coming—we’re in for more and more expensive wines from California and Oregon at the highest levels. There’s nothing to stop it. It is, indeed, inevitable.
“There’s nothing new under the sun.”
That’s from Ecclesiastes 1:9, which also says, “What has been will be again, what has been done will be done again.” One might have expected the Author of Authors to have taken the long view: not the next business quarter, but Eternity. So it is, or sometimes seems, for certain of us aging wine writers, who have seen and done just about everything—multiple times.
Now we have all this clamor about winery consolidation: Here’s an example, from Wines and Vines. The San Francisco Chronicle has another one, even calling the present era “buyout season.” And here is yet another, this one more specifically about Jackson Family Wines’ acquisition of Copain; the author, Dr. Vino, not surprisingly strikes a snide pose…but let us not digress from the formal point, which is that, yes, there has been a lot of buying activity lately on the West Coast, and not just JFW; Far Niente’s switch was big news. But the “nothing new under the sun” trope comes to mind because, when I first began writing about wine for professional publications, in the 1980s, the same thing was happening: much hand-wringing that all the little boutique wineries were being gobbled up. Every time there was a recession (1990-1991, the dot-com recession of the early 2000s, and certainly the Great Recession), the sky-is-falling prognosticators sounded the alarm: No more little wineries! But, somehow, family wineries remain in business—thankfully.
Face it, wine is a commercial product and thus subject to the business cycles and push-and-pull of capitalism. The average small family winery seems to have a life cycle: from startup to sale is, maybe, thirty years. And that makes sense. A guy or gal begins the winery in his or her twenties or thirties: thirty years later, he’s looking forward to Social Security, Medicare, and sleeping late, and may not have the physical capacity or the emotional temperament to continue the hard work of making and selling wine (especially if he’s also managing a vineyard). The kids may not want to continue in the family business. So what’s an aging winemaker/proprietor to do? Sell. It has always been that way and always will be. So there is no need to fret about this current wave of activity. It’s actually quite normal, and besides, I bet you that for every winery acquisition you read about in the news, five new family wineries are starting somewhere else in California or Oregon.
How many California wineries will make it to 100 years? Well, one or two already have: Beaulieu and Buena Vista, but they’re no longer owned by their founders. Inglenook planted their first grapes in 1871, but they’ve had multiple owners including, now, Mr. Coppola. Anyone else? Gallo’s going strong after 83 years; it’s likely they’ll hit the century mark. But compared to, say, Antinori (since 1385), California and Oregon wineries are just wee ‘uns. “What has been done will be done again.” Ain’t it the truth.
I realize that the connection between the modern popularity of “red blends” and old-vine vineyards is tenuous. But I think a case can be made that not only ties them together, but presents evidence that our taste in wines is pretty much what our distant ancestors’ was. In other words, Plus ça change, plus c’est la même chose.
That red blends are huge in the marketplace is proven by IRI data. Red blends beat all varietal types in case sales over the 52-week period in America ending Feb. 21, 2016. As Lettie Teague, in the Wall Street Journal, put it, slightly more than a year ago, “domestic red blends are some of the most sought-after wines in the market today.”
In fact, so cool have red blends become that Nielsen recently called them “the craft beer of the wine category—hip, different and trending.”
But precisely why they’re so popular is less easy to analyze, it seems to me. True, as Lettie points out, red blends “are cheap and they’re easy to drink.” But so are a good many other red wines. I don’t think the fact that they’re blends influences consumers in any particular way; the consumer may not even understand what a “blend” means, as opposed to a varietal; and I’m not sure the industry has figured out a way to calibrate “coolness,” except in a retrospective way that is not particularly predictive. Besides, I bet the same consumers who buy red blends also (contrarily) believe that varieties such as Cabernet Sauvignon and Pinot Noir are the best red wines. So, from a consumer-psychology point of view, the explanation of the popularity of red blends is ambiguous.
Probably it’s as much a question of branding than anything else. The most popular red blends are known, not for being blends, but for their brand names; and branding, as an advertiser will tell you, is the greatest accomplishment a product can achieve. Still, one factor—connected to Lettie’s “easy to drink” comment—may be that a blend, be it red or white, can make for a more complete, wholesome wine, because a single variety on its own may contain divots—imbalances of acidity, or aromas, or flavors, or mouthfeel, or tannins, or bitternesss—that a blend can compensate for.
By this I refer to the gestalt of a wine—when the sum total of its collective parts is greater than any of the individual parts alone. But this isn’t some modern discovery of our enlightened age. Vintners appear to have long understood it, which may be why the old Italian-American immigrants to California planted their vineyards to many different varieties. This often is explained as their solution to vintage challenges: early ripeners could compensate for early rains that hurt late ripeners, and vice versa. No doubt this is true, but I think the Italian-American winemakers also knew that a mélange of varieties in the vineyard could give them richer, rounder, more complete wines.
Yesterday’s Santa Rosa Press Democrat talks about this in focusing on one particular winery, Carlisle, whose Willowside Road Vineyard was planted in 1927 (by an Italian-American) and contains at least 39 separate, distinct varieties (Carlisle’s owner, Mike Officer, had the grapes analyzed at U.C. Davis). Carlisle long has coveted these old-vine vineyards and, as the Press Democrat article notes, “he helped found the Historic Vineyard Society (historicvineyardsociety.org).” Many vintners, particularly in Sonoma and Napa counties, deserve credit for helping to preserve these antiquarian treasures. I want to mention one, Don Hartford, of Hartford Family Wines, who has been instrumental in protecting old-vine Zinfandel vineyards. This is a labor of love, but it pays off: Hartford’s vineyard-designated Zins, such as Dina’s and Fanucchi-Wood Road, obtain very high scores from the major critics.
The question of why these old vineyards can perform so spectacularly fascinates me. One explanation is that the vine roots have dug deep into the earth, encountering minerals that don’t lay near the surface. Another is that their yields are so low. A third possibility is precisely what I’ve mentioned, that they contain numerous different varieties that make for a more complex wine. Who knows? But they are treasures. If you’ve been buying the newer red blends that are popular and inexpensive in the market, you might want to search around for a harder-to-find old-vine red wine from Napa or Sonoma. It will cost you more, but it will open your eyes to the magic of some of these old-vine blends, which are among the great red wines of the world.
* * *
While I am affiliated with Jackson Family Wines, the postings on this site are my own and do not necessarily represent the postings, strategies or opinions of Jackson Family Wines.
There, I said it. When it comes to predictions about Syrah, it’s the blind leading the blind.
When you’ve been around this industry for a while, as I have, you hear certain memes resurrected over and over. One is “Zinfandel’s new face.” Another is “Why don’t Americans like Riesling?” Still another is some variation of “Up-and-Coming Varieties.” But perhaps the most regular is exemplified by Wines & Vines’ new blog post, “Is Syrah Hitting Bottom or Finding Its Niche?” written by a talented writer, Andrew Adams, who’s been with W&V since 2012, and—unlike many wine writers—has actual dirt-in-the-boots winemaking experience.
Andrew was coming off a Washington State trip and so naturally had good things to say about Syrah. He struggled in his mind to understand how the Syrahs he tasted could be so good, while at the same time, “Syrah sales have been tanking for years.” How can this be? It is, as the King of Siam said, a puzzlement.
We can begin explanations with the theory that Americans don’t understand what Syrah is because they’ve heard of Petite Sirah and Shiraz and can’t tell the difference. That is perfectly understandable. Most consumers are busy enough without having to understand such arcane distinctions. This suggests that the “wine industry,” whatever that is, needs to do a better job of explaining Syrah to people, but that’s easier said than done. Wine writers have tried for years, with very little success; writers have to do more, but wineries should not depend on them to solve their Syrah problems.
Gatekeepers such as sommeliers and merchants are also part of the solution, but the problem there is that, being sales-oriented, they’re not going to put much energy into pushing a variety they perceive as a poor seller. Can’t blame them for that. So, given the under-performance or under-interest of the media and gatekeeper sellers, there’s not much more than can be done.
But what of quality, you ask? Well, as Andrew correctly notes, there are fabulous Syrahs out there, not only from Washington State but California (my bailiwick). Individual wineries that have developed a reputation for Syrah will be able to sell it, but overall, I think the challenge here is that Syrah isn’t different enough from Cabernet Sauvignon for consumers to “discover” it. Cabernet is so embedded in their heads as the #1 full-bodied red table wine that it will take a gargantuan effort to make them think of Syrah as an alternative. When it comes to lighter-bodied wines, there’s no shortage: Pinot Noir is the undisputed leader, Tempranillo is coming on strong, and there are many other candidates; but Syrah is not lighter-bodied. For Big Reds, Cabernet Sauvignon is like FDR during the ‘30s and ‘40s: so dominant a force, so overwhelming, that no other candidates found the oxygen to break through.
* * *
While I am affiliated with Jackson Family Wines, the postings on this site are my own and do not necessarily represent the postings, strategies or opinions of Jackson Family Wines.
On the Sales road today in the midst of a busy week, but first I want to comment on the headline this morning that Constellation has purchased The Prisoner for $285 million.
I “get it” that some of these big wine companies are going after these mass brands, like Meiomi, which was scooped up by Constellation. [ED note: In a previous edition of this post I mistakenly said Meiomi was bought by Gallo. Mea culpa!] But here’s my question about this Prisoner thing: As the San Francisco Chronicle points out in their coverage of the deal, The Prisoner owns no vineyards; the way the Chron put it is that the sale “suggest[s] a significant departure from the model that has long dominated the wine industry, in which land carries the greatest capital. Now, it would seem, brand trumps land.”
I disagree. That’s an easy and fatuous conclusion for a reporter who doesn’t understand the wine industry to make. But guess what? Grapes don’t come from the sky. You don’t drive your pickup over to Grapes R Us and load up on Zinfandel fruit. You have to have vineyards, and, in the case of The Prisoner, if they don’t have the vineyard holdings to ensure quality fruit year after year, then the quality of The Prisoner has got to suffer, with the inevitable consequence that consumers sooner or later will figure out that the wine isn’t what it used to be.
I don’t mean to slam Constellation, but let’s face it, that company doesn’t have the greatest reputation for wine quality. All too often they seem content to let quality drift to a midpoint level, which they hope they can get away with for a long time. And perhaps they can. When it comes to these mass brands, consumers might not notice an ever-so-slight racheting down of quality. It’s the frog (or is it lobster?) in a saucepan of water on the stovetop: Gradually increase the heat and the poor thing doesn’t even known it’s being boiled until it’s too late.
Look: brands come and go. Mostly they go, because they lose their rationale and consumers then lose their reason for buying it. So, I wish Constellation good luck with this, but really, the conclusion that “land doesn’t matter anymore, brands do,” is dumb.
Anyhow, time to hit the road! Going down to Silicon Valley today for a wine lunch and talk about Jackson Family Wines Pinot Noir. Ciao until tomorrow.
Aram Roubinian is the thirty year old assistant GM and beverage manager for Press Club, the hot, stylish wine bar and lounge on Yerba Buena Lane, tucked between Market Street and Yerba Buena Gardens. I asked Aram, who’s been there for five years, to tell me a little about Press Club.
Aram: Right after we opened, in 2009, the economy tanked. Trying times. The original concept was, we had contracts with different wineries—Miner, Chateau Montelena, Mount Eden, Hanna, Saintsbury and Fritz—with each occupying a different space. But it became apparent that wasn’t viable, so now, we showcase California wine, as well as Old World wines that inspired the wine renaissance in California, like classic Burgundy and Bordeaux. We also offer crafts beers and small plates, paired with the wine and beer.
SH: How would you describe your clientele?
AR: I’d say a Financial District crowd, mostly female, but professionals both men and women, and lots of corporate events, a nice range. I’d say the average age range is 30-40, but we do have some more mature clientele.
SH: What’s the customer’s sweet spot, price-wise?
AR: By the glass, $12-$14, and for bottles, $60-$80.
SH: What’s selling well?
AR: Whatever Sauvignon Blanc we have just flies off the shelf–doesn’t matter if it’s winter or summer. Our Pinot Noirs are very popular and, surprisingly, price point doesn’t matter. Our clientele likes premium Pinots and popular price points as well. Right now, our most popular Pinot is Stoller, from Dundee Hills, which is right in the middle, pricewise ($18 – $82). I’m also seeing a spike in Spanish wine; Tempranillo is very trendy. But the hottest trend going is Prosecco.
SH: What’s not hot now, compared to when you first came?
AR: Chardonnay is losing traction, especially the oaky style.
SH: Why do you think that is?
AR: I think it’s a little bit of what happened to Merlot after Sideways: a lot of people began to bash it–the media and, these days, everyone has Facebook, twitter, and a lot of people get their info from peers, as opposed to only from the media or a conversation with a sommelier, so I think of it as a whole collective, people were influencing each other. People call it “cougar juice,” the big buttery oaky Chards. It has this connotation that old women drink it.
SH: Kiss of death!
AR: Yes, right, especially for the female clientele, they don’t want to be perceived as older, out of touch. And also, with our younger clientele, they don’t want to drink domestic wines. Which is scary for the domestic market.
SH: Again, why is that?
AR: This Millennial generation, the rebels and hipsters, want to go back to more of the old world wines. But I feel like that too will change in time, and people will discover there’s wonderful wine everywhere.
SH: Where do you see the Millennials going in the future?
AR: I see a move towards more natural winemaking–that’s on everyone’s mind. Not a wine that’s necessarily certified organic or biodynamic, but a more natural process, with less pesticides, sustainable, and people are conscious about the environment, global warming. And I see more solar power being used; it’s growing in production. People want to know what they’re consuming. These days, there’s a lot of fillers in wine, and people are becoming more aware that wine can be easily manipulated. Ridge lists all the ingredients. I like that; I like the transparency there. But overall, I see people becoming a more self-sophisticated wine consumer. They realize, while they may have enjoyed consuming that buttery chardonnay and it was pleasure to the palate, they found out with a more delicate, balanced wine they could find more nuances and actually enjoy it more.
SH: Thank you Aram!