September, 2009  Member Newsletter
IN THIS ISSUE
Dead Zone
World Class Wines
Premium Club Wines

Intro
Yada
 
Sincerely,  Pinotguy Bob
 
wine moneyMakers of High-End Wines Caught in 'Dead Zone: 
By Kevin McCallum
THE PRESS DEMOCRAT
 
(Note from Bob:  All the stuff in this article is basically applicable to Oregon, too.)
 
Hedge fund manager Eric Flanagan spent millions to build the finest boutique winery money could buy. He purchased 120 hilltop acres with panoramic views of Bennett Valley, hired the best vineyard and winemaking consultants, and spared no expense in constructing his Flanagan Family Winery.
 
Complete with caves bored deep into the hillside and the finest French oak fermentation tanks and barrels, the modern, curved-roof facility opened in 2006. But Flanagan, who manages New York-based EMF Financial Products, made a critical mistake - he assumed California's high-end wine market would continue its inexorable march upward.
 
He found out how wrong he was last fall, just as his $100 wines were trying to gain traction in the market. The economy was in free fall, housing prices were plunging and consumers were pulling back sharply, eating out less and shunning luxury goods.
 
His timing couldn't have been worse.
 
"I think the efforts we made in the winery were good," said Mark Mazzoni, assistant winemaker since 2006 and its only full-time employee. "It's everything else that was falling apart around us."
 
The winery, including 16 acres of cabernet sauvignon and syrah vineyards, is now for sale for $8.5 million. An adjacent property is listed for $1.5 million, recently reduced from $2 million.
 
The demise of Flanagan Family Winery is just one stark example of a powerful shake-up under way in the U.S. wine industry. Consumers who for decades have been steadily trading up to higher-priced vintages have reversed course, trading down to cheaper wines in search of better values.
 
Some think the reversal will be short-lived; others say something has fundamentally changed in the wine business.
 
"There is permanent shift in the consumer's perception of the value of wine," said Robert Nicholson, principle of International Wine Associates in Healdsburg. "We would be naive if we did not realize that was not happening before our very eyes today."
 
The sudden retreat is leaving behind plenty of casualties.
 
Inventories at high-end wineries are building. Wine club memberships are being canceled as consumers lose their jobs or cut back expenses. Layoffs have hit major wine companies like Constellation, Fosters and Kendall-Jackson.
 
Grape growers are watching prices plunge 30 or even 40 percent compared to last year's record prices. Sonoma pinot noir that sold for $2,800 a ton last year might today sell for $1,800, according to brokers.
 
And an increasing number of wineries and vineyards are going on the block. "There are more wineries that are in the process of selling than at any time in my memory," said Rob McMillan, founder of Silicon Valley Bank's wine division.
 
The shift is good news for many low-cost producers, such as Central Valley producers E&J Gallo and Bronco Wine Company, both of which are seeing sales soar. But for the North Coast, the heart of the U.S. fine wine industry, it's a far different story.
 
The majority of the region's wineries are small, family owned operations selling much, if not all, of their wines above $20.
 
Sales of those wines are off as much as 15 percent this year, said analyst Jon Fredrikson, partner at Woodside-based Gomberg, Fredrikson & Associates.
 
For those selling wines over $50, the landscape looks even bleaker. Many wines from $50 to $125, of which Sonoma and Napa has plenty, are in a "dead zone," McMillan wrote in his April "State of the Wine Industry" report.
WORLD CLASS WINES
 
benton lane2006 Benton Lane Pinot Noir "First Class"

Price: $60
Production: 342 cases
Drinkability: Good, can cellar
Availability: Limited

Benton Lane is owned primarily by Steve Girard, who had gained some notice as a California producer before starting to make pinot noir in Oregon. His first release from the 1992 vintage was notable for the unusual postage-stamp themed label, and the "Burgundian" style.  California winemakers coming to Oregon was not so common then, and was notable.

Benton Lane is located near Monroe, Oregon near the county line between Lane and Benton counties. The name Benton Lane was, in my childhood, attached to a ramshackle structure that was a prohibition-era speakeasy. I used to go roller skating there as a young teenager. The winery itself is perched on a hill, and I grew up in a house on the north side of the same hill!  Alpine Vineyards, planted in the late 1970s, and Broadley Vineyards, share approximately the same neighborhood as Benton Lane.

This producer once had a broader product line, but in recent years has produced just two pinot noirs:  The reasonably priced Willamette Valley bottling, and this dramatic First Class bottling. Steve Girard directs the winemaking, with Chris Mazepink also in the cellar (recently at Shea); various others have spent time in the Benton Lane cellar including Gary Horner (now at Erath).

This '06 Benton Lane Pinot Noir First Class is an exceptionally attractive wine. It is very deep, rich, and packed with fruit that tends to the dark end of the pinot spectrum. It is concentrated, too - it has density that will reward time in the cellar. It's well-structured with wood tannins, but they are in balance and easily matched by that intense fruit.  Overall, this is an impressive wine that is approachable now, but that will display even more complexity and layers in a few more years.

This wine has received a Wine Spectator 92 points, with these notes: "Supple and disarmingly enticing for its gorgeous raspberry, black cherry and Santa Rosa plum aromas and flavors, beautifully arrayed on a fine carpet of sweet tannins. Lingers expressively on the harmonious finish. Best from 2009 through 2016. 342 cases made. -HS"
 


2008 Sineann Pinot Noir "Wyeast Vineyard"
 
Price: $42
Drinkability: Sit on this one for a couple of months
Availability: Selling quickly!

I have recently tasted through the lineup of '08s from Sineann, and the increasing price points reflect accurately the increasing intensity and complexity of the wines. At the lower end, the wines are a fantastic value.  At the upper end - well, the wines are as good as American pinot noir gets.

The crux of the excitement is the character of the '08 vintage. These wines are showing dark, glowing colors, fresh, juicy and lively flavors, and dense, detailed mid-palates that evolves into a near-endless finishes. Like other top '08s, these wines are exciting, vibrant, and will provide some immediate gratification, but will have the natural balance and fine structure to cellar very, very well.

What happened in '08 to bring about such great wines?  Great weather in October was the key. It was warm during the day, but not hot, and cool at night.  It didn't rain significantly until October 31st.  The warm days and long hang time let ripe flavors develop, but did not send sugars out of control - these wines are no more than 13.5% alcohol.  But that hang time resulted in amazing flavors. On top of that, the cool nights helped the grapes retain high natural acidity, which translates to balance and freshness.\

At this price point, ALL the Sineann's are terrific. But Peter Rosback calls this Wyeast Vineyard bottling "the sleeper of the vintage."  Given a bit of time, it could be the best wine of the lineup.

ONE NOTE - these wines were bottled recently. They should sit around for a month or even two to recover from bottling shock. After that, give one a try and see what you think!
 
 
PREMIUM CLUB WINES 
 
2007 J. Christopher Pinot Noir Dundee Hills Cuvee
 
Price: $29
Drinkability: Juicy, tasty now
Availability: Good for the short term

First, let's clear up the name thing. Jay Somers is the owner / winemaker at J. Christopher winery.  Christopher is his middle name, see? 

He is a bona-fide rock star of the Oregon wine world. No, really. He plays in a band. At significant venues. And he tends at parties to talk far more about his music (and fly fishing) than about wine or winemaking.

Jay is one of the most popular winemakers among Oregon wine industry types. His juice tends to disappear into local restaurants and wine cellars before much of it can leave the state. The OPNC is lucky that we've been wheedling for wine for about a dozen years; he actually calls us now when there is a new release!

In a normal year, Jay produces several single-vineyard pinots including Charlie's Vineyard, Le Pavillon and a top-dog cuvee, Sandra Adele. For '07, he has blended the best barrels from each of these sites into this one bottling. The quality shows through. It's juicy, fruit-filled, and nicely balanced with excellent length. Fairly open knit, it is drinkable today and for the next couple of years. It has none of the lean, green character found in lesser wines from the vintage.

This was just released, so if you like it, you can get more - for a few weeks. Like all of Jay's other wines, this one won't be around for long. 
 

2007 Westry Pinot Noir Justice
 
Price: $26
Drinkability: Yup
Availability: For now

Ten years ago, Westry was on my regular list of products. But nowadays, the number of available products has exploded. It is now impossible for any one person to know every other person in the wine industry here, and it's getting harder to keep up with all the wines (although most of the newest wines are not very good).  So I was pleased to taste this pretty wine a few weeks ago, and to find a place for it in our wine club.

After some inconsistencies in their earliest days, Westry has polished and honed their craft, and their wines have never been better. Justice Vineyard is located in the Eola
Hills, adjacent to Bethel Heights Vineyard on the south. It is owned and operated by
the Bethel Heights family and is considered part of the estate vineyard. Justice Vineyard sits on a bench that slopes very gradually to the south from 520 to 420 feet elevation. Seventeen acres of Pinot noir were planted between 1999 and 2001, using the best clonal material and viticultural practices. The soils of Justice Vineyard are in the transitional strata between the volcanic mantel of the Eola Hills and its ancient, sedimentary ocean floor base. The wines from the yards of Justice express these two distinct geological parent materials.

This bargain-priced wine features dark, creamy fruit shot through with minerals, drifting into a long finish. It is drinkable now. This pretty gem is now more attractive than ever thanks to a significant price cut. Deals abound on good '07s, and this is one of those deals.
 
Robert Wolfe
Oregon Pinot Noir Club · 1-800-847-4474