Ernest Gallo 1909-2007

It is with sadness that I report that Ernest Gallo has died. I have had my hand on the keyboard and eyeballs on the computer screen all day and was unaware of this event until just now. To paraphrase the CNBC announcement that just played in my background, "Ernest Gallo took a recipe for wine that he found in the Modesto Public Library and turned E & J Gallo into the world's largest winery". That's the embodiment of the American Dream.


Here's how Gallo changed the industry. Gallo was the first wine company to hire and train a sales staff spefically to market its brands in individual markets. For example, let's say I sell Chateau Alan at a retail store in New York. I speak to a rep for the New York distributor if I have questions. That rep also sells 300 other wines form all over the world. He gets Chateau Alan from another company in California who has about 50 different wineries they represent. With Gallo, there's a Gallo salesperson in all markets, who is responsible for Gallo products and that's it and he or she works for Gallo. That's the case a little more often with other large wineries and wine conglomerates, but Gallo was first.

I found this amusing write-up from the James Beard Foundation:

"After the war, Ernest devised a bold new advertising campaign for the company, transforming America's relationship with wine with his famous "lifestyle" billboards and ads. And in 1945, he brought his little winery to national attention by convincing Life magazine to attend a grape crush at the winery (the key selling point was a scantily-clad woman bathing in wine). But Ernest's success was due as much to little things as to big ones. He constantly visited stores across the country that stocked his wine, checking on bottle positioning, displays and sales. (He was, as Anthony Dias Blue of Bon Appétit recalls, once arrested in a tiny town in Texas for lurking in local liquor stores. When he explained that he was Ernest Gallo, the sheriff reportedly replied, "and I'm George Washington," and carted him off to jail). Ernest was tireless-and effective. Between 1948 and 1955, sales rose 400%. He set down his precepts in a three-hundred-page secret marketing "Bible" that the family still uses. He is, Dias Blue asserts, unquestionably "a marketing genius."

Here is the E&J Gallo Press Release.

So, raise your next glass to a wine industry innovator and legend who lived the American Dream to the fullest...

Glory Days

I ended last night in conversation with a friend about modern business classics such as Den of Thieves, Liar's Parker, The Smartest Guys in the Room and A Random Walk. We were discussing the efficiency and inefficiency of financial markets. It got me thinking again about wine prices and my most recent "random walk" down the aisles of a wine store.

As I perused the selections available, a few bottles of Calera Pinot Noir, the single-vineyard stuff, caught my eye. $55 a bottle. If you have been into wine for a while, you'll remember the following. If you're new to wine, the story is as meaningful as ever.

Calera is an outstanding producer of California Pinot Noir. For a while in the mid-1990's, Calera was fairly cultish, tough to find, expensive vis-a-vis its peers at the time, but certainly of high quality. I dug out my notes on a seven-year old Calera from a wine dinner on February 3rd, 2001:

1994 Calera Pinot Noir, Selleck
Very good concentration of raspberries and cassis. Structured by nice, ripe tannins. Nice wine...etc, etc.

A fine showing by a seven-year old California Pinot Noir being that most are made in a more fashionable, drink-me-know fashion.

It was right around this time give or take a year or maybe a few months, that Josh Jensen of Calera came out with his now (in)famous newsletter of new releases wherein he explained that the he was rasing the price of Calera's single vineyard offering from $55 to $80 per bottle in order to keep his prices even with other top Pinot Noirs from California. Everyone in the wine business walked around with the same type of buzz that many of us had Tuesday morning as we saw months of growth in our 401(k)'s vanish (okay, perhaps I'm being a bit melodramatic, but you get the point). Not long thereafter, although quality has never waned, Calera dropped off the radar quite a bit.

So, during my recent "random walk" it was fitting that I saw Calera Selleck vineyard waiting for me on the shelf. After a period of time where Calera Pinot Noir was overpriced, the Calera stable has experienced a "market correction" and has returned to $55 dollars a bottle, right back where it was about seven years ago. I had visions of Jim Cramer in my head ("Buy!Buy!Buy!") and picked up a bottle to enjoy with a steak that evening. Admittedly, I enjoyed every last sip.

[Bruce Springsteen's Glory Days plays in the background. Fade.]

California Dreamin...

As the checkered flag dropped on yesterday's Auto Club 500, a 500-mile race in Fontana, California, I couldn't help but think to myslef that I wish I had made a weekend of it. I could've left Fonatana in the early evening following what was a pretty exciting race, caught some zzz's and been off early this morning to head down Route 15 to Temecula. Temecula is a great starting point for one's exploration of California's relatively unknown South Coast wineries, and one couldn't do better than beginning the morning at Temecula Hills Winery.

Admittedly, Temecula Hills winery is quite a bit larger than the micro-wineries we normally represent, but that doesn't mean there still isn't that homey feeling. The reason most wineries in the surrounding areas are on the larger side is part geography, part history. First of all, it is generally less mountanous here, and as a result there are less obtrusive geographical boundaries that naturally separate tracts of land. Secondly, this area is relatively new to commercial planting, and so a small number of (in my opinion very wise) investors were able to walk in and find the space to plant vineyards without restriction. This is not unlike what happened in the "lesser" AVA's located in the Central Coast in the 1960's.

Here's the difference. There are several ways to make the "rich, buttery" Chardonnays for which California wineries were long noted. The two most common are through full malo-lactic fermentation and the other is through the use of oak. If a winery employs both techniques without care, the result is an opulent, blowsy white that is more of a meal than a refreshment, and not entirely what I want.

This needs explanation. When Chardonnay grapes ferment - that is, turn their natural sugars into alcohol - that is called primary fermentation. The wine that results has a lot of green apple flavor and acidity, something known as malic acid. There another conversion that takes place, malo-lactic or secondary fermentation, that changes this more biting acidity into a creamier textured acidity, lactic acidity. (Think malic - milk, it is the same acid.) So there is a smoother mouthfeel. Winemakers allow malolactic fermentation to occur in varying degrees, some may choose no malolactic, full malolactic or somewhere in between. If the grapes are ultraripe, ultrasweet and high in alcohol (alcohol adds apparent sweetness to alcoholic beverages such as wine) then the wine becomes too "soft" in the mouth, very full, too creamy and overall not that friendly with most foods.

The same thing can happen with oak. Oak adds a certain vanilla, coconut flavor to the wine (in varying degrees depending on a lot of factors, a topic I hope to explore in the future). With the vanilla, coconut flavoring from oak and full malo-lactic fermentation and a lot of heat (and hence ripeness and alcohol), the wine becomes unbearably clumsy, weighty and sweet.

Luckily, one of our favorite stops in Temecula, where it is quite warm, is Temecula Hills Winery. Realizing that balance is always required in a wine (balance, as my regular readers already know, is what I most prize in a wine), Temecula Hills makes their Chardonnay sans oak, offering instead, pure, natural Chardonnay flavors and the essence of sunny Southern California. They opt for an unoaked Chardonnay, skipping the sweet oaky flavors that might throw the wine out of balance. The wine that results is fresh, flavorful juice that has a nice backbone.

Those of us on the east coast about now could probably use a bit of sunny, Southern California in a bottle. If you do, like I do, I recommend 2004 Temecula Hills Winery Unoaked Chardonnay without hesitation. Sunshine in a bottle - without the sunburn: Enjoy!

The Results Are In: Double Gold Best in Show

I discussed one of our latest additions, Escafeld Winery, earlier in this blog, and, having already covered their peppery, chocolatey Zinfandel, as promised I wanted to follow up on my outstanding recent tasting of Escafeld's 2004 Petit Verdot.

Many of you may be unfamiliar with the grape Petit Verdot, but even those of you who do not know it, may have had it, at least in small doses. Petit Verdot is typically an element in Red Bordeaux, adding tannins and color to the better known Cabernet Sauvignon and Merlot grapes. Being part of the "classic Bordeaux Blend", California vintners eventually planted the grape as well.

If you drink only California Cabernet Sauvignon's and similar wines, you may still think that you have never had Petit Verdot: think again. Petit Verdot plays a supporting role in many of the most popular Cabernet Sauvignon-based wines made in California today. Names such as Rudd, Murphy-Goode, Seavey and even last year's Wine Spectator Wine of the Year, Jospeh Phelps Insignia, all contain Petit Verdot.

What's great about Escafeld is that rather than being and endnote to the story, their Petit Verdot is the body of the work. Don't be led down the path to fool's gold in thinking that if Petit Verdot is never seen alone in Bordeaux that it won't make anything special; Monterey County is a long way from Bordeaux. Given that it is often quite easy to tell the difference between Cabernet Sauvignon from Napa as opposed to Sonoma, wouldn't it make sense that Petit Verdot would take on different charcteristics than it does 6,000 miles away in France's famous Medoc?

I think that this wine is quite simply outstanding. The wine has a firm texture, full fruit, a sleek mouthfeel and great length. You could drink it with anything from Burgers to Spicy Pasta (like the Italian Sausage Marinara concotion simmering on my stove right now). Either way, I'll skip the sales pitch and let the judges decide. The results of the recent San Francisco Chronicle Wine Competition:

All Other Bordeaux Varietals - 2007 Award Winners


SCHOTT ZWIESEL Double Gold Best of Class
Escafeld 2004 Petit Verdot San Antonio Valley, Monterey County, CA


SCHOTT ZWIESEL Gold
Cinnabar Vineyards 2003 Malbec

SCHOTT ZWIESEL Silver
Berryessa Gap Vineyards 2004 Malbec Berryessa Gap Vineyards
deLorimier 2003 Malbec Alexander Valley Estate
Mosaic 2004 Malbec Alexander Valley
Opolo Vineyards 2004 Petit Verdot Paso Robles
Rancho Sisquoc 2004 Malbec Flood Family Vineyards
Reininger Winery 2003 Carmenére Walla Walla Valley 7 Hills
Snake River Winery 2004 Malbec Wood River Vineyard
Stonegate Winery 2003 Petit Verdot Napa Valley, Wappo Vineyard
Stryker Sonoma Winery 2004 Petit Verdot Knights Valley Speedy Creek Vineyard

SCHOTT ZWIESEL Bronze
Forest Glen Winery 2003 Malbec
Lapis Luna 2004 Petit Verdot San Luis Obispo
McKenzie-Mueller Vineyards & Winery 2003 Malbec

As an addendum, the 2004 Escafeld Petit Verdot is the first ever winery to bear the AVA name of San Antonio Valley .. things look pretty promising so far!