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July 23, 2008

Chateau Montelena Sold to Cos: Would this Trigger More Euro Buying in CA?

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The biggest news in winedom that broke out yesterday is the sale of the venerable Napa winery, Chateau Montelena, to top Bordeaux classed-growth estate Château Cos d’Estournel.

There is no announced sum for the transaction, but the credible rumor is $110 million—a whopping price even discounting the weak dollar versus the euro. In this regard, Chateau Montelena has pulled off its biggest shocker since winning the Judgment of Paris in 1976. But more significantly, I think, it is an indication that top Napa wine estates could have values almost as high, if not as high, as some of the great chateaux in Bordeaux.

Would this sale prompt more European winery acquisitions in Napa or in other points in California for that matter? Taken together with other high-profile European takeovers of US companies of late, there could be a rush of buying while the dollar remains cheap for the euro. Prime candidates could be long-established wineries with proven vineyards but in need of cash to refurbish aging facilities and vineyards.

But what’s in it for European buyers like Cos? Simply put, it is the still untapped potential in California wines, both in terms of quality and marketing. Thirty years after Judgment in Paris, the French are finally acknowledging that California wines are worthy to stand next to French wines, provided, of course, they are in charge.

June 11, 2008

An Eclectic Mix of Wines

After much delay, warmer weather finally arrived in the Bay Area, hence the outdoor patio was the perfect setting for barbecued steaks and this eclectic mix of wines at Steve's last Saturday June 8th.

1983 Pauillac Premier Cru, Château Mouton-Rothschild: dark, fleshy, soft, good fruity and cedary perfume. Not intense but fresh and meaty, earthy and somewhat spicy dark berry fruits with soft tannins. A pleasure to drink and I would not hesitate to declare it very open for business at this point. 4 Stars

1994 Dunn Cabernet Sauvignon, Howell Mountain: High-toned red currant, even a bit of cranberry fruits with spice. Fresh fruity, herbal nose. Nice elegance. Very good balance. Expanse in the mouth with a good, long finish. Drinking very nicely and will age further. 3 Stars

1998 St-Emilion, Peby-Faugeres : Very darkly colored. Earthy jammy fruit scents. Densely, fleshy textured blackberry and blueberry fruits with cedar, earth tones. Rich, lively tannins. Powerful, mouthfilling palate. Good finish, though not extraordinary in length. Opulent, but harmonious overall. This is evolving very well. Can’t wait for another ten years. 3 Stars

1985 Ridge Zinfandel Geyserville, Sonoma
: Perfumy currant, herbal Cabernet nose. Good savory red berry fruits and bright herbal notes with good concentration and acid balance. Still very fresh with very soft tannins. Good length on the finish. The surprise wine of the night. 3 Stars

2004 Sea Smoke Pinot Noir “Southing”, Santa Rita Hills (Santa Barbara)
: This nearly escaped being opened, but some of us insisted we needed to have a dessert wine. Candied cherries and caramel flavors accented by oak vanilla. Juicy, softly textured intense forward ripe flavors, with good brightness. Warm on the palate and a touch alcoholic. Pleasurable and simple. 2 Stars

April 24, 2008

Bordeaux Eats

I passed through the Bordeaux region briefly last month, as I’ve been long overdue there for a visit. I spent one day visiting producers you’d probably never find written about in any wine publication and another day with some of the region’s famous châteaux. I’ll write about my impressions of these visits very soon, I promise.

Meanwhile, what immediately caught my attention the other day is this delicious report on leading edge restaurants in and around Bordeaux in the New York Times (don't miss the slide show). As much as I obsess with wine, food is even more primal to my heart, or perhaps more accurately, to my stomach.

It never even occurred to me that the Bordeaux region can be a gastronomic place, but in the few short days I was there I was enlightened about the potentials of the local cuisine. Suddenly my attention was divided. I ate a tender and juicy roasted leg of Pauillac lamb at an inn. I had a taste of Arachon oysters at a wine bar. I saw the highly prized Bazadaise cattle grazing in the fields of Sauternes.

I know I’ll be back in Bordeaux soon. But it won’t just be for the wine.

April 06, 2008

Clos Puy Arnaud

“Influenced by the spirit of Burgundy—looking for minerality, for fruit; looking for barrels, for fruit that balances the wine.” So explains Thierry Valette his vision for the wines of Clos Puy Arnaud as we walked through his vineyards on the morning of Easter Monday.

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Thierry Valette holding a piece of calcaire from his vineyard

Clos Puy Arnaud (eagle’s view) is perched high on the plateau of Belves de Castillon in Côtes de Castillon. This is a small and magnificent estate. I can easily see why Thierry Valette, the proprietor, was excited to purchase the property upon discovering it soon after his family sold Château Pavie. Even on a cloudy day it was very bright here, as well as airy, with plenty of open skies looking down on the vineyards. The 7-hectare vineyard surrounding the winery and residence (another 2 hectares are located in another area of Belves) is on the plateau, with topsoils so shallow that the calcaire bedrock protrudes to the surface on some portions.

The special terroir is farmed following organic and biodynamic principles. A team of just five persons work in the estate year-round, including Thierry and Anne Caldéroni, who is the oenologist. Stephane Derenoncourt, the top consulting winemaker in Côtes de Castillon, was Thierry’s mentor between 2001 and 2004.

The vineyards are planted mostly to Merlot, with Cabernet Franc making up most of the difference and both Cabernet Sauvignon and Carmenere accounting for a tiny portion. I find it interesting that Carmenere, a varietal that has almost disappeared in Bordeaux, is given expression here. The average age of the vines is 35-years-old, almost entirely accounted for by the Merlot which are planted on the best site, on the plateau, as it makes the most interesting wine in this terroir. Replanting is going on, mostly Cabernet Franc and some Merlot.

In the cellar, a sorting table could be found next to the destemmer, but I’m not entirely sure how useful it is. Thierry says they purposely leave 1%-2% green grapes to the mix that go in the vats, and that there is a measure of overripe and underripe grapes that account for part of the blend. Yields are by no means high, but not very low either, 32-35 hl/ha.

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Thierry Valette showing pigeage

I was starting to have a clearer understanding of Thierry Valette’s vision for this estate. Great terroir, organic and biodynamic farming, and a conscious effort to maintain a sense of balance in the winemaker’s inevitable intervention. My curiosity rose at how all these translate into the wine.

Thierry opened the valve of the cement vat that stores the 2006 vintage to draw a sample. The blend is 5% Cabernet Sauvignon, 25% Cabernet Franc, and 70% Merlot aged in one-third new oak. 2006 was a brutal harvest in Côtes de Castillon because of the rains, and Clos Puy Arnaud lost 35% of its crops. It smelled of oak and fresh blueberry aromas. Dark and flavorful, the wine is well-structured with good acidity and rich tannins. How it would integrate over the next several months until it is bottled and released I have no idea, but it will be very interesting. 2006 is not a vintage I find very promising in the right bank, yet I’m always on the lookout for exceptions.

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Cement vats in Clos Puy Arnaud's cellar

We went into the chai where the 2007s are resting in barrels. Thierry has an instructive and enlightening approach to tasting young wines from barrel based on barrel elevage, rather on blocks, varietals, or clones. You see the influence of the barrels on the development of the wines. From the winemaker’s standpoint, I can see how this approach makes sense.

So, first a 2007 Merlot in Tronçais oak: dark, ripe, fruity but a bit green;
Next, 20007 Merlot in Taransaud oak: more open, rounded, fruity, good midpalate, good fullness in the mouth, one gets the sense that this is a complete wine;
2007 Merlot in Taransaud oak with more toast: spicy, Grenache-like nose, more vanilla, rough finish;
2007 Merlot without oak from stainless steel barrel: fresh, fruity, pure Merlot taste;
2007 Merlot in Berthomieu barrel: sweet, fruity aromas, powerful, rich, good tannins, toasty;
Finally, 2007 40% Cabernet Franc, 40% Cabernet Sauvignon, 20% Carmenere in Taransaud oak: fruity, spicy, licorice, minty flavors, rich tannins.

My clear favorite was the second barrel.

Thierry got increasingly absorbed with the wines as we tasted, as he has to decide soon the representative blend for next week’s en primeur. I thought he has some very good raw material to work with. Having tasted the components, I’m surprised at how promising this 2007 vintage is for Clos Puy Arnaud and, perhaps, for the right bank as well.

I had a fantastic time with Thierry, and I’m thankful for him for the experience and the opportunity to learn something about this special but little-known estate. As I was leaving, I grew excited about dinner later that night at L’Envers du Décor in St.-Emilion, where Thierry will bring the 2001 and 2005 Clos Puy Arnaud. All these tastings simply teased me, and I’m dying to drink and savor his wines!

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February 08, 2008

"Bordeaux Pricing Immoral"

Interesting Decanter article today. Cost of a bottle of First Growth Bordeaux is supposedly only about $17 (Euro 12), which means en primeur price is about 80x cost. Wow, talk about inflation! This far exceeds even the typical mark-up on luxury goods such as a Cartier watch or a Prada bag, which is said to be about 17x cost.

May 04, 2007

Parker to the Rescue!

Influential wine critic Robert Parker has breathed life to a listless Bordeaux 2006 en primeur campaign. In his latest journal released a few days ago, he woke up the Bordeaux market yet again with his pronouncement (and more importantly his scores): "The 2006 vintage has produced many fine wines... 2006 appears to be a modern-day version of 1996 or 1986, two vintages that produced wines with high percentages of Cabernet Sauvignon in their blends, strong tannins, and, in the best cases, impressive concentration."

Over the past month or two prominent wine experts have raced each other to issue their own assessment of the 2006 Bordeaux vintage. Decanter, Jancis Robinson, Wine Spectator, and a host of MWs and top merchants have made their verdicts known to the public, yet the market remained at a standstill, with the Bordeaux producers sitting on their hands seemingly lost at how to price their wines. It is clear as daylight, Bordeaux cannot thrive without Parker. They need him badly. As Michel Rolland was overheard as saying once, "only Parker sells Bordeaux".

But of course Parker also needs Bordeaux badly. Bordeaux is the wine region that established his reputation. And to remain the premier wine critic in the world, Parker needs to cover Bordeaux as it is the only type of wine by far with a truly global market.

There is a symbiotic relationship between the Bordelais and Parker. Over the past two decades, the system they have created is simple and efficient. Parker creates a demand for the wines which the Bordelais converts into pricing. It is, of course, not a formal system, but it exists and works nonetheless.

So the Bordeaux 2006 campagin is now cued up. With the market stimulated by Parker's encouraging assessment one can bet that avid collectors are now phoning their merchants for allocations of the top wines, while other buyers are eager to pounce on offers to lock in the best prices.

Ah, prices. What to expect? The wine trade and wine journalists have exhorted the Bordelais early on to exercise restraint in their 2006 pricing. But when it comes to their money the Bordelais are not easily dissuaded. Yet the clamor has been at such a high pitch, no doubt due to the excessive price increases in both 2003 and 2005 wines, that the Bordelais have at least taken pause. The demand on them is to roll back prices to no more than 2004 levels or even less. Well, I think, fat chance on that happening now that Parker has weighed in. Note his comments: "There has been considerable demand by many who purchase large quantities of Bordeaux futures for prices to be rolled back to those of three or four years ago. Certainly prices will come down because 2006 is not a great vintage, but there are many fine wines, and some 2006s are even more complete than their 2005 counterparts. Furthermore, and another exacerbating factor, 2006 is not a big crop, at least for the top wines. Yields generally ran between a modest 20 and 45 hectoliters per hectare, which is significantly less than 2004, and little different from 2005."

Such a statement is definitely music to the Bordelais. Parker is saying the vintage is conderably better than 2004. That quality of some wines even rival 2005! That quantities are limited, especially the top growths as they had "to eliminate 40-65% of their production". Given such justifications I don't expect prices to be back at 2004 levels, in fact, I expect them to be not only considerably higher than 2004 but not too far off 2005 en primeur prices. Let's watch and see.