Cabernet Howell
July 6th, 2010 | 
Author: Cabernet Howell
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Crisis in Napa (Part I)
It is impossible to dismiss the appeal of the Napa Valley. Nearly six million wine drinkers make their Road to Route 29 each year, jumping to a tasting room to another glittery. This traffic flow – mass production Direct selling opportunities – coupled with a love story in the world with high quality, highly rated boutique brands, fueled the surge unprecedented price in Napa.
Few wineries in Napa Valley boutique grow grapes. Most fruit buy. As prices bottle climbing, especially in direct sales, margins have soared. Suddenly, the grape growers of the most coveted vineyards could choose their customers. prices rose, grape and producers have managed to lock their customers grape contracts long term. These contracts are part of the root of the crisis.
But for the purposes of this part of history, we chose to focus on a different part of the market: the fair new wineries bottle. These areas, many as small as 10 acres, has spent a lot on earth, then spent much tearing the earth and planting. Some began by simply growing and selling grapes before bottling wine on their own. Some went directly bottling under their own brand. They have built business models (most of which proved to be Excel spreadsheet Fiction) based on what was happening along the Silverado Trail. They spent a fortune on French oak barrels (as the dollar has dropped precipitously), hired consulting winemakers, and prepared for the gravy.
To really enjoy the crisis, we have created a sampler of three of the most inspired films of these new, small areas. There is deep, plush Carl Roy sensational 2007 vintage Cabernet with grapes from Howell Mountain and Soda Canyon, the Crane Brothers' is a perfect blend " (The best of the best vineyards of this blank) called Brodatious, and the delicious, rich Maple Lane Cabernet from their vineyard between St. Helena and Calistoga. Two bottles each of these gems of Napa-tiny production, sold for less than 50 cents on the dollar! Here's why.
Almost uniformly, the caves above, and dozens of others up and down the valley were facing a new reality. Just like the winemakers were prepared to launch their brands, wholesalers clammed up. $ 50 bottles flying from wholesale warehouses saved. Rather than take on new suppliers, wholesalers have been cajoling existing suppliers, explaining how the market was on its ear, for which prices had to come. For new players on the block, the wholesale market collapsed a few months at the end of 2008.
Regarding sales direct traffic slowed on Highway 29. Other caves with more mature programs have increased their budgets for direct marketing. These new cellars were not positioned to play live, their mailing lists have been weak, their prowess immature direct marketing. The phones have been ringing off the hook not 18 months before were silent. The wine was the backup in the warehouse and the grapes – so the grapes would not cease to grow, year after year.
What will happen to these companies? Some will close. But owned and operated family businesses will scramble to understand how to survive. The vineyard are excellent, the wine is already very good and the old vines, it might be too great. They tighten their belts, and they seek means for sophisticated consumers of wine to taste their wines. Today, many call WineAccess.
How long will this last? We'll tell you more about this in the coming weeks. But in the meantime, at those prices, the time to buy Napa Cabernet is now. Click here to learn more.
About the Author
WineAccess is the largest wine buying network in the world. We allow wine consumers like you to buy the world’s finest wines from hundreds of wineries and fine wine shops every day. We also pour through thousands of special offers we see from wineries and stores, focusing on a handful of the most compelling wines available on the market.
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Atlas Peak Howell Mountain Cabernet Sauvignon – Grapes to Wine
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