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November 10, 2008

Reybier Backs Out of Montelena Deal

I blogged about the Chateau Montelena sale to Chateau Cos d’Estournel back in July saying that it was the biggest news in winedom at that time. Well, last week Chateau Montelena announced that the deal collapsed, making this by logic the other biggest news in winedom.

Wine blogs and wine forums immediately picked up the news. I tried to look for more info and Yahooed (I happen to use Yahoo not Google) the news, typing in “Cos”, “Montelena”, etc., and I was amazed at the dozens of search results all saying the same thing. Wrapping the history of Montelena—including, of course, its winning the “Judgment of Paris” tasting, the Barrett family story, blah, blah, blah—around the single press release from Montelena, which said: ‘Reybier Investments has been unable to meet its obligations under its contract with the Barrett family, who will retain ownership and not offer the winery for sale. The process that just ended did not result in the outcome we or Mr. Reybier desired.”

That’s it. There is no further news or explanation for this nixed deal. No statement from Jean-Guillaume Prats, Cos d’Estournel’s GM, or from Michel Reybier himself, the owner of Cos and the buyer. It’s not even clear if any news organization tried to reach them. I found myself asking the question, like a lot of people reading the news, I'm sure, why didn't the sale go through? And who is this shadowy-like figure, Michel Reybier?

Jean-Guillaume Prats has been the only French face in this deal. Many know him, of course, as the son of Bruno Prats, the long-time, former patriarch of Cos, who was forced to sell his family’s property due to French tax laws. An investment company purchased Cos from the Prats in 1998, then in 2001 sold it to Michel Reybier. Reybier was a processed-meat tycoon from Lyon, who created some of the most well-known deli meat brands in Europe. Reybier successfully sold his deli meat empire to the US company, Sara Lee, in 1996. His wealth is currently estimated at $650-800 million. Among his other interests are a luxury hotel group based in Geneva and Paris, an investment stake in an oil exploration company, and properties in the south of France.

Reybier is one of many French tycoons who own high-profile estates in Bordeaux. Others are Bernard Arnault, François Pinault, Albert Frere, Jean-Claude Beton, Gerard Perse, Cathiard family, Bich family, and Wertheimer family, just to name a few.

October 25, 2008

Ramblings on New Napa Cabernet Sauvignon

Recent thoughts and conversations with Napa folks about Napa Cabernet Sauvignon vintages somehow left me with an urge to write these rambling notes.

Mark Grassi sauntered in to the store Friday to introduce himself and to thank me for my support. Great guy. He's a construction man by profession, his Napa construction company builds wineries for Napa's cult wine producers like Screaming Eagle and Ovid, as well as houses for their owners, like Tim Mondavi and Jayson Pahlmeyer.

But Mark seems proudest of all of his latest achievement, releasing the debut 2005 vintage of the Cabernet Sauvignon from his 4-acre estate and residence in Soda Canyon. He believes timing couldn't be better for the debut release as the quality of his 2005 is high. He was happy to point out that his Cabernet, at $60 a pop, is about half the price of the top California Cabernets that the Wine Spectator listed in its current issue on California Cabernets that scored at least 90 points (his scored 91). And to top it off, he was profiled in a piece in that issue regarding eight newcomer producers of Napa Cabernet Sauvignon to watch out for. Hey, everything's going his way right now! Check out the 2005 Grassi Cabernet before it sells out.

The 2005 Napa Cabernet Sauvignon vintage offers the best wines since the 2001. However, James Laube of the Wine Spectator expressed "surprise" at the high quality of the vintage, as he sort of panned it previously. I thought he screwed up, yet again, when he first wrote up about the vintage two years ago. When I also tasted many of the wines from barrel around that time, I thought they already showed wonderful promise. Moreover, Napa Cabernet producers believed that, too, and they were upbeat about the vintage.

For the record here is what Laube wrote after barrel-sampling the 2005 vintage over two years ago: "If 2005 is to end up being a sensational year for Napa Valley Cabernet Sauvignon, as so many producers insist it will, the wines will have to make a stronger impression than they did in my preliminary blind tasting in Napa this week... The 2005s do not show as much depth, plushness, concentration or range of flavor as past vintages have displayed at a similar stage of development. This may be both a function of the vintage and the result of a deliberate attempt by winemakers to ease off on superripe wine and soaring alcohol levels." Laube and his poor readers were the only ones surprised.

So the Wine Spectator rates the 2005 Napa Cabernet vintage 93 points, on par with 2002 and 2001. I'd score 2001 and 2005 even higher. But why is 1997 rated 99 points? It is now known, even by Laube's published ten years on tastings, that many of the top-scoring Cabernets from this vintage have had problems lasting a decade, not to mention that so many are showing elevated VA now. I expect the top 2005 Cabernets will both age and taste better than these 1997s after ten years. Let's wait and see.

Tasting some barrel samples of 2007 Cabernet Sauvignons earlier this year at the Cabernet Society tasting in Napa showed the wonderful potential of this vintage. Very much like 2005 in quality. Good vivid flavors, balanced ripeness, and rich tannins. Always the three things I look for when tasting Napa Cabernets, especially from barrel.

But honestly, I'm still at a loss at why vintages can vary so much in quality in Napa. I mean, it never really rains between May and November, and the majority of days are very warm and sunny. It ought to be a slam-dunk each vintage. One has to conclude that it's basically two things why there's inconsistent quality: too many wrong vineyard sites and too many producers not really knowing how to grow good wine.

2005 is a bumper crop in Napa, and the timing for producers couldn't be better considering the current economic downturn. Even at reduced prices they should be able to make it up with sales volume. But guess what, prices are up! The Wine Spectator issue notes that the average price of "outstanding" Napa Cabernets (those they score at least 90 points) is $119/bottle in the 2005 vintage, which is about double what it was a decade ago. I bet you, most, if not all, producers can slash their prices by half to $60/bottle and still make money. Napa producers, you gotta start lowering your prices, like almost everyone seems to be doing these days. Don't let the market force you to do so.

2008 crops are now in and it is clear the harvest is down by as much as 30-40% in Napa. How the heck did that happen? We haven't seen rain in a long time. And though the weather was relatively cool for long stretches, there was no problem getting enough warm, sunny days to ripen fruit in Napa. We are talking of a cool-climate grape here, Cabernet Sauvignon, native to Bordeaux, where the weather is much cooler. Again, I go back to my comment above: too many wrong vineyard sites in Napa and too many Napa producers who don't know how to grow good wine.

July 23, 2008

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

Montelena.jpg

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 07, 2007

CIA Store

Wine country trekkers may not be aware of it but one of the most pleasurable stops in Napa is at The Culinary Institute of America at Greystone in St. Helena.

CIA Store front.JPG

The CIA, as it's commonly known, houses a well-equipped kitchen supply store that sells lots of useful tools and gadgets for the serious cook. I stumbled on the Spice Islands Marketplace, or simply the CIA store, when I attended the Cabernet Society tasting last month. The timing of this discovery couldn't be better as I've been searching for a hard-to-find type of tongs that's very slender like a pair of chopsticks and great for precisely grabbing and turning a tiny morsel of anything, like a shrimp or sliverof zucchini, in a crowded saute pan. Made of stainless steel and looking like an oversize tweezer, I found it there for about $24.

CIA Store inside.JPG

Next time I would grab the cool CIA Greystone logo kitchen apron and maybe the oven mitt as well, as both are always handy and make great souvenirs from Napa, perhaps more useful and cheaper than that bottle of Napa Cabernet. Oh, and I noticed they hold cooking demonstrations there as well. A great idea if you're bored with wine tastings.

CIA store class.JPG

Spice Islands Marketplace at the CIA in Greystone
The Culinary Institute of America at Greystone
California Branch Campus
2555 Main Street
St. Helena, CA 94574
Daily: 10:00 a.m. to 6:00 p.m.
Phone Toll-Free: 888-424-CHEF (2433)or 707-967-2309