With good reason, Northern California wines are best known for their Bordeaux-varietal based reds. As we all know and remember from lecture, these grapes are Cabernet Sauvignon, Cabernet France, Merlot, Malbec and Petit Verdot. Since California, and specifically Napa and Sonoma, produce such high caliber wines of these varieties, it is known globally as one of the best producers of Bordeaux-varietals, often winning awards over similar wines produced in Bordeaux itself.
While that's all well and good for California Cabs and whatnot, I'd like to give some credit to a less celebrated California varietal that I believe is also producing amazing wines, just without receiving the same praise. I've been fortunate enough to taste a few different Pinot Noirs produced in California in the last year, and am always surprised at how great of a quality I'm getting for the price I'm paying (and am thus surprised by the quality I'm getting for the lack of label notoriety).
Two specific wines that come to mind here are Rhys Vineyards (https://rhysvineyards.com/), which grows its grapes in the Santa Cruz Mountains, and Williams-Selyem (https://www.williamsselyem.com/), based in Healdsburg. I had the chance to try a glass of Pinot from each of these labels (can't remember the vintage, sorry!) at family dinners over the holidays and was blown away by the flavor profiles of each. This led me to do a bit of research on the two labels, since I hadn't really heard of either of them.
Both Rhys and Williams Selyem appear to be what are known as 'Cult Pinot Noirs,' which are Pinots that have extremely small and selective distribution lists and sell the vast majority of their wines through said distribution lists. Not only does this create a scarcity of supply (and thus drive up price for those who can purchase either on lists or via secondary markets such as auctions), but it also (intentionally or not) perhaps quiets general consumer knowledge of a given wine. While connoisseurs will know about the great cult Pinots regardless, I wonder whether being a cult Pinot can hurt your brands reach to the more average, everyday consumer. And from a more macro perspective, could having some of the top Pinots of California be under this cult strategy ultimately be a major contributing factor to the Bordeaux varietals being far and away the most well known grapes that produces California reds? Hard to say, but given how great these cult Pinots I've tasted are plus the fact that so few people have heard of them, I suspect there might be something that's worth unraveling further!
http://www.princeofpinot.com/article/2048/
Wednesday, February 20, 2019
Setting up shop in China
When I was reading the Wine in China: The Wild West of the
Far East case I was thinking about the rules and regulations that are required
to be in accordance with in order to legally set up an operation in the Chinese
market. This was primarily a thought because a vitamins business that I worked
with before school had to effectively exit the Chinese market because of new
regulations that made it very challenging for foreign health food products to
enter China. Also, having just finished reading Shoe Dog and learning about the
about the difficulties that Phil Knight and Nike faced when setting up operations
in China, it was particularly top of mind.
It didn’t take long to realize that creating a wine business
in China is not an easy task either.
·
Taxes
o
VAT: 17%
o
Custom duty: 14%
o
Excise tax: 10%
·
Steps
o
Signing agreement with Chinese importer
o
Registering company with AQSIQ
o
Registering label
§
Labeling requirements
·
Name/brand of product
·
Ingredients list (Sweeteners, preservatives and
added color – legal in the case of fortified wine only – must be declared)
Exempt for products made of one ingredient.
·
Net volume (ml): This should be marked as ‘net
content xxx Ml (ml)’ for bottle sizes under a liter, or ‘net content x Liters
(l)’ for bottle sizes over a liter. For packages up to (and including 200ml)
the minimum print height is 3mm. From
200ml up to and including 1 liter, the minimum print height is 4mm. For packages greater than 1 liter the minimum
print height is 6mm.
·
Alcohol content (%): The alcohol statement
should be in the ‘Alcoholic strength xx.x% vol’ format.
·
Production date (yy/mm/dd): The date of bottling
is required on Chinese labels.
·
Producer/Distributor/Importer (Name and
address): The name and address of the Chinese agent, importer or distributor
must be shown on the label. The name and address of the producer is not
mandatory, however if included does not need to be translated into Chinese
characters
·
Country of origin: A country of origin statement
is mandatory. Importers will usually request a Certificate of Origin to confirm
this claim.
·
Minimum durability date: Wines with an alcohol
content of 10% or less are required to include a minimum durability date.
·
Product Type: (i.e. Grape Wine, ‘red’, ‘white’,
‘sparkling’, ‘semi-sparkling, ‘fortified’, ‘sweetened fortified’, etc.)
·
Sugar content (g/L)
·
Mandatory Warning Statements: The following and other warnings must be on
the bottle in Chinese: "Excessive drinking is harmful to health" or
"Pregnant women and children shall not drink". For beer in glass bottles also add "Do
not hit; it might cause explosion of the bottle".
·
Required documents
o
Commercial invoice
o
Customs Value Declaration
o
Freight Insurance/documents
o
Packing List
o
Insurance Certificate
o
Certificate of Origin (for distilled spirits and
malt beverages only)
o
Certificate of Health/Sanitation (for distilled
spirits and malt beverages only)
o
Certificate of Authenticity/Free Sale (for
distilled spirits and malt beverages only)
o
Consolidated Wine Export Certificate (for wine
only)
·
Licensing and registration
o
Must submit an application to the Exit-Entry
Inspection and Quarantine Bureau
The Passion Index
We've discussed investing in wine using traditional methods, such as investing in a wine business through the stock market. Yet, there are other methods for investing in wine. Rare coins, luxury cars, and fine art - these are just a few examples of items that make up what some investors call the "passion index". These tangible assets act as direct alternative investments that - like any other investment vehicle - after purchase appreciate (or depreciate) in value over time. Interestingly, wine is a non-trivial category in this space. It even has it's own exchange: the London International Vitners Exchange.
You might ask, what drives the valuation of a bottle of wine? Essentially, supply and demand - that is, the rarity of a bottle relative to other wines and the shifting demand for it as a collector's item. If done right, parking one's assets in expensive wine bottles can actually be a smart move (as high as 50% returns in some cases, with commiserate risks). However, wine is not a fast-turn or cheap investment. One can expect to wait between six and ten years for a bottle to significantly appreciate. Further, getting started in the wine investment space is not cheap - a first investment costs at minimum ~$8000.
Interestingly, startups have been shaking up these traditional barriers to the investment wine space. Cult Wines, for example, essentially acts as an index fund for wine - spreading participants assets across a diversified portfolio, managing portfolios towards risk preferences, and insuring bottles. Indeed, if one is knowledgeable about the space, wine investments are certainly not the worse way to spend your investment dollars.
You might ask, what drives the valuation of a bottle of wine? Essentially, supply and demand - that is, the rarity of a bottle relative to other wines and the shifting demand for it as a collector's item. If done right, parking one's assets in expensive wine bottles can actually be a smart move (as high as 50% returns in some cases, with commiserate risks). However, wine is not a fast-turn or cheap investment. One can expect to wait between six and ten years for a bottle to significantly appreciate. Further, getting started in the wine investment space is not cheap - a first investment costs at minimum ~$8000.
Interestingly, startups have been shaking up these traditional barriers to the investment wine space. Cult Wines, for example, essentially acts as an index fund for wine - spreading participants assets across a diversified portfolio, managing portfolios towards risk preferences, and insuring bottles. Indeed, if one is knowledgeable about the space, wine investments are certainly not the worse way to spend your investment dollars.
Our reds are too warm and our whites are too cold
The day will inevitably come when wine is taking up so much room in your refrigerator that you'll have to decide between whether to store that next bottle, or your quart of milk. When that day comes, it may be time to investigate giving your wine a special home of its own inside a wine fridge.
After a successful trip to several wineries in the Santa Cruz mountains this weekend (including Ridge! A must see/taste!) I returned with too many bottles and decided it was finally time to invest in a wine fridge myself.
Here's what I found out about them:
1. Size matters. The size of your apartment, that is. These things can be pretty bulky - and typically they are quoted as holding between 18 and several hundred bottles. For our standard living arrangements here in Palo Alto, you should probably look at the smaller end fridges, of between 18 - 50 bottles.
2. Dual Zone fridges aren't totally real for small wine fridges. The idea between dual vs. single zone fridges is for the wine lover who wants to store their reds and whites at different temperatures (vs. sometimes only storing one type of wine). But, when it comes down to the smaller fridges (<50 bottles), the temperature is actually really difficult to control in separate compartments. Vinepair.com spot tested several dual zone fridges and found that the temperature was actually consistent throughout. So, if you're looking to save some money, you could go for the smaller single zone fridge until you have bigger space to upgrade. Just set it to 60, a relatively good temp for both reds and whites.
3. Cost? Typically in the low to mid hundreds for the smaller sized fridges. Expect them to last only a few years.
4. System: Thermoelectric vs Compressor. Thermoelectric is the silent one...and tends to be more expensive...but apparently doesn't actually cool the bottles very well. Compressor fridges are louder (they sound like a regular mini fridge) but almost all sites I visited preferred them. I still opted for thermoeletric, but I'm a sucker for silence.
Mine arrives tomorrow, so if your'e in the market you're welcome to come check it out!
After a successful trip to several wineries in the Santa Cruz mountains this weekend (including Ridge! A must see/taste!) I returned with too many bottles and decided it was finally time to invest in a wine fridge myself.
Here's what I found out about them:
1. Size matters. The size of your apartment, that is. These things can be pretty bulky - and typically they are quoted as holding between 18 and several hundred bottles. For our standard living arrangements here in Palo Alto, you should probably look at the smaller end fridges, of between 18 - 50 bottles.
2. Dual Zone fridges aren't totally real for small wine fridges. The idea between dual vs. single zone fridges is for the wine lover who wants to store their reds and whites at different temperatures (vs. sometimes only storing one type of wine). But, when it comes down to the smaller fridges (<50 bottles), the temperature is actually really difficult to control in separate compartments. Vinepair.com spot tested several dual zone fridges and found that the temperature was actually consistent throughout. So, if you're looking to save some money, you could go for the smaller single zone fridge until you have bigger space to upgrade. Just set it to 60, a relatively good temp for both reds and whites.
3. Cost? Typically in the low to mid hundreds for the smaller sized fridges. Expect them to last only a few years.
4. System: Thermoelectric vs Compressor. Thermoelectric is the silent one...and tends to be more expensive...but apparently doesn't actually cool the bottles very well. Compressor fridges are louder (they sound like a regular mini fridge) but almost all sites I visited preferred them. I still opted for thermoeletric, but I'm a sucker for silence.
Mine arrives tomorrow, so if your'e in the market you're welcome to come check it out!
Pull No Punches: A Case for Champagne Cocktails
Crisp, effervescent, and inherently celebratory – sometimes
I wonder why anyone would ever want to add anything to a perfect glass of
bubbly. But then I remember the deliciousness that is a French 75.
Champagne’s history of collaboration in cocktails goes back
hundreds of years. Based on recipes and tasting notes from the time, it seems
that bartenders began adding champagne to their alcoholic punches in the 1700s
to introduce acidity and alcohol to the sweet mixes. These recipes evolved over
the ensuing years to adapt to developments in champagne production and to
changing consumer tastes.
The recipe that we
would today call the “champagne cocktail,” featuring a bitters-soaked sugar
cube and a splash of cognac topped with champagne, came about in the mid-1800s.
Champagnes of the day were far sweeter than the brut styles that are most
popular today, but the classic cocktail has persisted. Bartenders around the
world have since adapted their own variations and punches inspired by the
festive tipple. Here are a few of my favorites.
Aperol spritz: An Italian creation, featuring prosecco +
Aperol + a dash of soda (this one can be re-vamped with the liquor of your
choice)
Bellini: Another Italian version, prosecco + white peach puree
French 75: Champagne + gin + lemon
Kir Royale: Crème de cassis + champagne
Mimosa: Champagne + orange juice (and a splash of triple sec if you’re feeling
adventurous)
Sbagliato: Another credit to the Italians, with prosecco + sweet vermouth +
Campari + a splash of soda
Sources:
A Not So Bubbly Brexit
Yet another reason why Brexit is causing headaches on both
sides of the Channel. With its exit from the single market comes an exit from
the single wine market, too. Brexit will
come with new tariffs on wine imports into the UK, including a likely end to
the 120 liters of wine that UK nationals can currently bring back duty-free
from other EU countries. Given that the UK imported nearly £1 billion worth of
wine from France in pre-Brexit 2015. The Brits had better hope that global warming
makes for prime wine country within their borders, ASAP.
In the meantime, forward-looking businesses and consumers
are trying to at least build runways to help their supplies last. LVMH has
added four months of wine and spirits inventory (including of its Moët &
Chandon champagne and Hennessey Cognac) to its U.K. stockpiles. Particularly
thirsty consumers are making the three hour road trip to Calais, and even the
five hour trek to the Champagne region itself, to stock up on lower-priced vino.
A temporary insurance provider has created a calculator to help these savvy
consumers calculate just how much they can save, based on today’s prices.
A glass of champagne makes everything better. But what will
Brits do when the go-to panacea becomes the very reason for their pain?
Sources:
Coffee & Wine
I was on a recent trip to Hawaii (The Big Island), and paid
a visit to the Kona region to taste and explore a few coffee farms. One of our
visits was Kona Joe, known for its
patented growing technique: trellis-grown coffee. Inspired by winemakers, Joe
spent years developing this unique growing system to grow award winning beans.
As a coffee enthusiast, this got me thinking of the many similarities
of these two beverages:
·
Variety – Just like wine, different types of
coffee beans are suited to different terroirs, affecting aroma and taste of the
brew.
·
Growing patterns – Wine & coffee are both
suited to best grow in specific regions (belts to be specific)
·
Flavor & Tasting – both beverages are tasted
and described in terms of key flavors, aromas and acidity, and “Q Graders” are quality
tasters that reflect the wine industry’s leading sommeliers.
·
Roasting / Winemaking Process – The roasting
process reflects the winemaking process in its role in highlighting flavors and
influencing “boldness” of a brew
However, despite all these similarities, wine has far
outpaced coffee in developing a robust and complex economy, while coffee is primarily
traded as a commodity (the world’s top traded commodity). While the wine
economy has greatly implemented the practice of appellations and protected
designation of origin, coffee has yet to cultivate a formal appellation system.
One reason for this is its long history of primarily being produced in
developing regions, and primarily being sold as a cheap commodity. For most
people, the primary purpose of coffee is fuel. Wine is for enjoyment. However,
we’re seeing a shift as coffee connoisseurship and focus on quality coffee grows.
As for the trellis grown coffee? Fascinating, and tasted very different than what I’m used to. However,
despite my enthusiasm for the beverage, I couldn’t get into it for the additional
price. I’d much rather spend the extra cash on… well, a bottle of wine.
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