For those
people that don’t know my story, I completed my wine making education at U.C.
Davis in 2008 and began making wine in 2009.
My second vintage arrived last week after much drama. Like many small wineries, I have used a
custom crush facility; it doesn’t make sense to own all of the processing
equipment for small scale boutique wines.
My first wine is outstanding. My
grapes for both 2009 & 2010 are from Beckstoffer Georges III vineyard and I
have compared my wine to the 2009 Schrader
Cellars "GIII - Beckstoffer Georges III Vineyard" Cabernet Sauvignon,
Rutherford. You can find tasting notes
on Schrader at the major wine rating publications. My 2010 isn’t as good, though it is still a
nice wine. But the wine does have a more
interesting story.
Shortly before the wine was planned to be bottled, I was informed that
the custom crush facility had major financial problems and the future of
everyone’s wine stored there was in doubt.
Despite that the wine had been 100% paid for in advance, California will
not give the wineries title unless they have a license to bottle. Over the course of the next several weeks,
through limited communications and ominous news articles printed in Northern
California publications, we learned that the custom crush company housed at
Sebastiani, was assigned by the Board of Directors to a third party. The
secured lender and assignee arranged for a rush auction, where a prearranged
company created by a small private equity firm, was the only bidder for the
assets. This is a legal practice in
California and allows companies to avoid lengthy and expensive bankruptcy
procedures. However, small businesses
like all of the affected wineries get hurt.
It was rumored that some Mondovi family and others were interested in
buying the business, but were shut out of the process. We were told our wine could be sold in bulk
to other wineries. Some of the employees
of the illiquid company became management of the new venture. They told us how irresponsible the old
company was, but that we should trust them.
My winery, and many others, became unsecured creditors attempting to get
our wine back.
When the new
venture proposed a solution, they set-up conference calls for small groups of
wineries to participate. The new venture
owner told us that if we pay a fee of 20-50% of what was previously paid, and
pay in advance, they will bottle our wine and let us have it. Some of the winery owners thanked this guy
for “saving” the wine. They called him a
hero and the owner acted like he believed the praise. I fully understood the process was simply an
opportunistic collaboration that followed a financial meltdown, in a state with
poor protection for creditors. No hard
feelings from me, but I won’t call these guys heroes.
Now I have
my wine, and I paid a premium-monetary and emotional. The wine has a story that I can tell as I
share and distribute it.