Author: traderbill

How did Trader Bill originate? It was conceived by me as a way of providing information summaries of global financial markets so that friends and associates could bring themselves up to speed on events and changing market conditions upon their arrival at work. In addition, it provides information on speakers and economic releases that day with consensus estimates and level of last release so that the reader is prepared to react, or knows how the market might react upon the release of information. Who is Trader Bill? Initially any reference to me was as ‘i’. This is to remove the aura of ego and to suggest that i am but a humble reporter, albeit with 35 years of investment experience. Investments are demanding of ego, however, or one would not feel that he was qualified to manage someone else’s money in the first instance. Therefore i needed an ‘alter-ego’. Like Winchell and Mahoney, Edgar Bergen and Charlie McCarthy and especially Trader Vic and Mai Tai’s! Why Trader Vic? Because he was a likeable man who delivered pleasure to his customers and knew exactly what their desires were. The reason for the alter ego became obvious once I introduced Trader Bill into my commentaries: people started asking what Trader Bill thought. They had never asked me what I thought before, but suddenly they wanted to know what TB thought! Now mind you they KNEW that I was Trader Bill but for some reason he became bigger than life. Maybe it was the small ‘I’? What does Trader Bill try to do?His goal is to educate from his years of experience. Consider that most of the traders and people managing investments weren’t even around in 1987 for the crash! Consider that Graham and Dodd, and even Warren Buffet are not relevant to them, too old hat. Their historical perceptions of markets and fundamentals (earnings, price/earnings ratios, bonds, debt service coverage) are irrelevant in this fast moving world. This is the NEW ECONOMY, or is it? How did your style originate?Years ago i found that i had a knack and talent for writing. In addition, i developed an ability to analyze market news about 15 years ago. It took the Crash of ‘87. Prior to that i was just listening to what others said about the economy. But bond yields had been soaring in ‘87 yet the stock market just kept hitting new highs. That was when i began to learn about markets. i have both a dry and witty sense of humor (some call it inane!). Therefore i attempt to make even the worst news somewhat amusing: whether it is the absurdity of an economic release, or the comments of a CEO. This is trading desk humor (or gallows humor). It isn’t politically correct but it does ease tension. Ironically, it is seeing the light at the end of the tunnel (in the Navy they say: it’s always darkest before it’s pitch black!), that allows you to be more objective in your analysis, as bad as a situation is there will still be a tomorrow! You will see that i practice three-dot journalism, a style made famous by San Francisco reporter Herb Caen, whom i idolized. At least to me it is effective. What is so special about your analysis?Frankly, i don’t know that it is special, but at least it beats “the market closed down today on profit taking.” What i do know is that most of what you read is spat out without considering whether or not it is rational, like the above statement. Is it right? Sometimes yes and sometimes no, and that is the key to what is different about my analysis: it is meant to make you think. Is Dan Rather right or is Trader Bill right? If it causes you to stop and think about it, regardless of whether you agree, i win! Because THAT is my goal…not to have you think i am a guru, got that? Bet you never heard that ANYWHERE before in my business! Instead they want you to think just how smart they are but remember in this business if you are right 60% of the time you ARE a genius! Another thing that is different is when i am wrong on an analysis i will tell you, not hope you forget what i said. So now you have the tools to do what the speculators and hedge funds do: challenge authority, and if you make money it is because YOU did it not me. i was just a tool, your flunky to do the grunt work and let you decide…course you could be wrong too but at least you looked at the big picture. But the goal is also to have fun! This shouldn’t be a business of hushed tones and grim faces. It is a living, breathing thing and nowhere else in the world do you have the odds as much in your favor as here. Just beware of the guy who wants to put his arm around you and tell you he is your friend. So there you have it. I hope you select me as one of your sources for market information. If you do I promise to work my best for your financial success. Trader Bill

Vol.1 No.24 …why bigger isn’t better…in beer OR wine…

In the last episode, TB unloaded on the AB ImBev-SAB/Miller buyout. Do you really think that is good for the industry? Consider this: TB went to lunch yesterday and on the list of craft beers was Stella Artois…at $8 the most expensive beer on tap. Hmmm, is it that good? It IS good, but with literally hundreds of craft beers springing up all over the country, their might be more competition than the behemoths think. There is a good profit in a craft beer and attempting to raise the price on Bud, Miller, or even Stella likely won’t fly as the closer they get in price to those fine craft beers being made virtually everywhere in the country, people might just revolt from the swill that passes as beer (oops, I exaggerate but you get the point).

Now let’s look at the BIG wineries…to satisfy their audience who most likely aren’t oenophiles, they strive for consistency from year to year. The also have to buy grapes from many growers and their profit margins aren’t that wide – the profit comes from volume. That is why a winery that produces 10,000-25,000 cases cannot charge less than $20 and frequently has to charge $25 to $35. But as TB has frequently noted: globally, good wine is forcing out bad…bad wine cannot be sold at any price. Last year, three million gallons of French wine were turned into ethanol. Think those winemakers got the point?

Some people who rant about wine prices blame it on fancy labeling, heavy bottles, and many more issues. The fact is that 80% of the cost of producing wine is labor. Now add in the investment in real estate, the cost of maintaining vineyards, stainless steel, oak barrels, and much more…and guess what? After all that, even if you do everything right, you can have a bad year. That is why the late winemaker Joe Heitz told me that people think wine is romantic…it’s agriculture…farming.

So, don’t you think those people deserve to make a profit? They are not faceless corn or wheat farmers, who people never consider when there is a drought, infestation, or a huge glut that drives prices down…and don’t forget farmers…and grape growers have big cash flow issues and have to borrow to match their revenues and expenditures. Did you stop to think of that?

Previously, TB said, drink your Two-Buck Chuck or whatever you like during the week then get adventurous on weekends. Spend some money on good wines you have never tried or like. One way to satisfy both conditions of value and quality is to go to restaurants associated with a wine shop. There, you buy the wine and bring it to the restaurant (usually next door), and they waive the corkage fee. Now you can buy a $30 wine and not pay $50 for it. I will list two that I know, one in Walnut Creek, California, PRIMA, a northern Italian restaurant, and one in Minnetonka, MN, called Spazzo, also Italian. But there are others and you can find them, if you look and ask around.

While we are on this topic, it appalls TB to see wine lists that take advantage of the customer. First, the markup in sparkling wines is outrageous…sometimes a common Prosecco can cost as much by the glass as an entire bottle. Then there are the wine list themselves. No self-respecting restaurateur – or a sommelier that works for one – should have the commonplace wines on their carte de vins that has a plethora of the most common names at double or even triple the price. Along with this goes the wine lists that you swear you have seen before. Most likely you have with a few changes. Distributors offer to print the wine lists for free and then pack them with their own wines and provide the pricing. That is one stupid move by a fledgling owner and says volumes about her care for the restaurant. If she does this with the wine, does she look for the best meats and vegetables or just the cheapest? On my last trip in a great restaurant in Genessee Depot, WI, that I bet none of you ever heard of, The Union House, built in 1864 (?), I had a wonderful wine dinner. It will be discussed in a blog most likely early next week. Folio Wines provided the pairings and the chef did wonders with them. The distributor who set up the dinner said he was originally a consultant to restaurants on their wines before becoming a distributor. The wine list here showed his expertise…who would have thought? By the way, as obscure as the restaurant sounds it is only about ten minutes off I-94 near Delafield, and coming from Minnesota about half an hour before you get to The Dells. A must!!!

On etiquette, other than the examples above, never go to the store and buy a current release wine and take it to a restaurant. It is bad form here and you will still have to pay the corkage fee, which nowadays can be as high as $20 a bottle (oh, and that is a 750ml bottle so don’t try sneaking in a magnum at the same price). You can bring in a treasured bottle but always ask when making the reservation…and here is a tip: sometimes offering the somme a taste of a memorable wine will result in the corkage fee being waived.  But note it is either bad form or not allowed to bring wine into a restaurant in Europe…think about that.

In Adventures on the Wine Route, Kermit Lynch describes going to the cellar of a vigneron in Burgundy and tasting some exquisite wines. The man then said lets go get something to eat and they went to a local truck stop (not a joke), where a carafe of the house wine was ordered. Kermit noted that it tasted like “shit”, and the man said it is worse than that, it is “shit de merde”. So why would a man with a great cellar at his disposal do this? He said to bring his own wine would insult the owner. More food for thought.

Now if TB hasn’t succeeded in hammering into your brain what wine is all about, you may as well stop reading because you don’t get it and never will. That is your prerogative. But if you want to see hard-working people make a living, and want to continue to drink their wines…show them some respect and support…please!

To those of you who want to hear about the trip and the names of some of the wineries, TB promises he will do it next week. It is a lot to organize…thank you for your patience.

TB

©Copyright 2015 TBOW, all rights reserved.

Vol. 1 No. 23 something wine and beer are increasingly having in common (adding mea culpa)

Mea Culpa: TB had details of the SAB/Miller – AB ImBev were wrong and have been corrected. In the same sectionit was Heineken, not Stella Artois that purchased 50% of Lagunitas Brewing. Mea maxima culpa.

Also note that TB welcomes your comments both positive and negative – just make them constructive.

The Management aka TB

First, let me make it clear that TB favors small wineries, especially family wineries. That is not to say that bigger ones are bad but the more people who become involved, the less the passion, and passion is a key element in doing everything to make a remarkable wine. What TB loathes is corporate ownership of wineries. You cannot run a winery like a typical division of a corporation, yet it is done all the time and there are different time horizons: longer term for a family owned winery; short-term for a corporation. In addition to wineries, I find similar comparisons with small wine shops (these focus mainly on wine although they may carry hard liquor too), and the chains which can be as big as Beverages & More, and Total Wines.

A new concern is online wine sellers. Why? Because they may be clearing out someones stale inventory and thus able to sell it at a low price, yet because they bought it at a distress price, make a very large profit…and don’t forget shipping costs! But the important thing is they sell either on a rating (with so many out there far too many are getting 90 ratings and even if it is deserved you might not like it). Remember, you are your own best wine critic! What Robert Parker or Trader Bill thinks is irrelevant…unless you are speculating in wine, something else TB loathes as it drives the cost up to you, the consumer.

Now I will give you three examples of family-owned contrasted to corporate-owned:

Taylor Wine Company, one of the oldest in the U.S. and located in Hammondsport, New York. Originally it used native American grapes such as Catawba and Concord. When other growers had success by bringing in the vinifera grapes from Europe, eventually they decided to do likewise. Then they were bought out by Coca-Cola, who apparently didn’t understand the lead time between planting new vines and getting the production from them to be profitable. In the end, Coke filed bankruptcy for the winery, one with a very long tradition even if you didn’t care for the style.

Robert Mondavi Winery, founded in 1966, became the benchmark for large producer California wines until it was surpassed by…yep…smaller family-owned vineyards. In addition to the joint venture on Opus with Baron Phillipe Rothschild, they began partnering and buying out old family owned wineries in Italy with great reputations for quality. Ironically, the film Mondovino showed them in a bad light, having deviated from their roots. Produced in 2004, it was about the time the Mondavi empire peaked and eventually was bought out by a corporation, Constellation Brands, now a powerhouse but before that famous for one wine My Wild Irish Rose…need TB say more?

TB is not gloating about what happened to Mondavi since it was the first winery he visited the year he and his wife were married, 1969. TB had a vertical collection of their Cabernet Sauvignon from inception, 1966, with at least two bottles from each year (the 1966 was purchased for $4.50!). After the sale, interest was lost and one vertical case was donated to the University of Nevada for an auction, and later the other sold at a Butterfield auction. Because of the corporate ownership, TB has not purchased a bottle from the winery since.

Lastly, what the title of the blog is about. How many of you remember the original Samuel Adams? A true craft beer, but IT grew until it and Yuengling became the two biggest selling craft beers in America…if you can still call them that…TB can’t, not at 4 million barrels a year each! Same goes for Stella Artois one of TB’s favorite’s and now available on tap in most restaurants and bars in America. Is that what a true beer drinker wants to see? By the way, if you want to read what one bar owner has to say about them go to Open letter to Sam Adams

Now to the point: do you recall when Miller Brewing was sold to SAB (Stella Artois), and later Anheuser-Busch was bought by the Dutch company AmBev? Frankly, I never cared much for either Miller or Bud, but they were very popular among the masses and that is what counts, right? Well, if you own the company it is.

A couple of months ago it was announced that Heineken bought a 50% interest in Lagunitas brewery, a beer TB thoroughly enjoyed and still likes, however, several people have said, and TB felt, that it doesn’t taste as good as it once did. Furthermore. both Heineken and Beck’s suffered when they began bottling in the U.S. and thus increased production. Big production will do that. But the big issue now is the AB ImBev – SAB/Miller buyout for $106 billion, yes, billion! In addition, the breakup premium is $3 billion, meaning if, for any reason, the deal doesn’t go through, AB ImBev is out that much! This smells to me like there is something assuring them that it will go through despite them being the #1 and #2 beer producers in the world. Some legislators here have voiced concerns or even dissent, but it is the EU that will decide. What this means for consumers should it happen, and TB will bet it does, is control over beer prices globally, something the Sherman-Antitrust Act was supposed to prevent and the EU has fined some of the large U.S. tech companies for their practices, yet here are two in their own backyard and hardly a peep.

This is what TB does not want to see in the wine industry, Gallo, and Franzia Wines (two-buck Chuck), have a huge monopoly on wines but not on premium wines. Fred Franzia says “never pay more than $10 for a bottle of wine.” Are we to take it that the price may go to somewhere above the $5 it is already at?

A local fellow blogger doesn’t believe you should pay more than $20 for a wine, and despite his self-admission that he has never taken a wine class, he rates them and then deducts for every dollar above ten. By that test, wouldn’t everyone buy a Chevy rather than a Porsche? TB’s just sayin’…

So here is what TB thinks: the aforementioned blogger is correct that people can not drink a $25, $30, or more every night of the week. So buy something cheap to drink during the week that you like. But be adventuresome on weekends and try some better wines…preferably with the help of a small wine shop that is knowledgeable and listens to what you like in a wine.

There is very little bad wine being sold today as good wine is forcing it out and people are becoming more aware of what they like. France, converted something like three million gallons of wine into ethanol last year. Why? Because they couldn’t sell it, obviously. There is a message there. TB’s message to you is if everyone tried to consume $10 wine, or even up to $20 and would never pay more, there would still be plenty of wine around, but the wines of character would be gone. At least you could just go and pick up any bottle as they would all taste the same. Fine…that is, if you don’t want a really good bottle of wine.

Perhaps it is like the younger generation: they have recording artists they love but they don’t pay for the music. See the similarity?

Off to have a glass of good wine…

TB

©Copyright 2015 TBOW, all rights reserved.

Vol. 1 No. 22 …back home again from NYC/Canada roadtrip…

(Readers note: when I began this blog I had planned to post at least once every two weeks. I did not want to waste my, or my readers, time ‘just to get something out there’. The problem with that is people forget and come back and see no updates – the last was on 9/24 shortly before I left on the wine trip. IF you like the blog, please add your email to follow and you will be notified when there is an update. You can, of course, unsubscribe at any time. Thank you, the management) 

…an incredible trip of 4,200 miles in 19 days…not as daunting as it sounds. Despite the fall colors, not that many tourists out there. Haven’t even tallied up the number of wineries I visited and was very impressed. Long Island, Hudson Valley, Finger Lakes, Niagara (mainly on Canadian side). DO NOT underestimate these wineries! Overall quality was very good and many were excellent!

Where to start…well…not where you might expect. Starting right here in Excelsior, MN, where we got home on Friday afternoon. I had two reasons for this: first, Total Wines here was having Gaia Gaja speaking on the Gaja wines – or so I thought. For $20 she spoke with a Q and A followed by a tasting of Gaja wines – some but not the very high end ones that cost more than $200. I then found out (and it made sense) this was a teleconference that could be viewed in any of their stores and having recently tasted the Gaja portfolio, I passed. Several years ago I visited the winery in Barbaresco, Piemonte, Italy. Some time later The Wine Club in San Francisco posted in their newsletter that she was interning at their store following one at Robert Mondavi. I went down and was privileged to meet a ‘cautious’ Gaia, who was charming and opened up once she realized I had been to the winery and met several of her friends in Barbaresco. As it turns out, she is now running the winery, having taken over from her father, Angelo. If I can connect with her again, it will be the subject of a later blog.

So, while that was a bust, the other reason I came back was for a tasting of Italian wines at The Wine Republic here in Excelsior, MN. Patti Berg and RJ Judalena (and their precious daughter, Orla), opened a specialty wine shop here a little over a year ago. Their niche is that they only carry wines that are either organic, sustainable, or biodynamic. Besides being environmentally friendly, these methods are growing in popularity…in California, mostly sustainable, and in Sonoma all wineries will be sustainable by 2020. I also saw on the trip of both sustainable and organic (only one certified organic), and one biodynamic which is also starting to catch on in California. Although it has been since sold, Justin winery in Paso Robles was doing it when they started.. Without getting technical (which I can’t because I don’t fully understand it), it involves planting by the phases of the moon and much more…think Farmers Almanac.

By carrying only these environmentally-friendly wines (along with some beers, ciders, and hard liquor that meet the criteria), it limits the number of wines so you don’t see a wall (which is what you will see at Total, Wine Club, or any large wine store), of confusing wines – some of which may have been standing for a year or more. Instead, you can browse or tell them what you like (isn’t that what TB has been trying to tell you here?), and they will show you their wines that might appeal to you.

But the other thing they do is host weekly tastings of wines they carry and sometimes very special tastings of wines. Cost of the regular tastings is $5 which can be applied to any purchase, while the special tastings cost $10 (so far at least) but due to the large number of wines tasted, can not be applied, but trust TB, they are worth it.

The first of these was France is for Lovers, featuring wines distributed by Berkeley, Ca. importer/distributor Kermit Lynch, who has done more than anyone to promote wines from the south of France which were previously obscure, and was the first to come up with the idea of temperature controlled shipping containers for all of his wines – especially important on the West Coast where they frequently travel through the Panama Canal. It took several years for another distributor to replicate this. He also is author of several wine books, the most enjoyable being Adventures Along the Wine Route, written more than 20 years ago and recently updated, which drove TB’s passion for wine. It is a thoroughly enjoyable read, even for wine novices or those just interested in French travel. The tasting included 25 of his wines and provided the taster with the ability to try wines they might never have the nerve or inclination to buy. It was very festive an even featured a beret-donned accordion player to set the mood!

Saturday’s was Italian Opera and Wine, featuring 22 wines from FIVE different Minnesota distributors, The quality was high and the prices blew me away – TB marked 11 as having exceptional value (range $16 to $30). Especially notable were four alternative whites including a Soave (Tamellini) – a wine I wrote of long ago; a Ca Lojera LuganaTrebbiano which blew me away; 47 Anno Domini Pinot Grigio (also a Prosecco that was fabulous), with a beautiful floral nose that finished very dry, an amazing PG that I had never seen before. Lastly, a deliciously sweet but very clean 47 Anno Domini Moscato – yummy. If you haven’t ever had any Malvira wines you are in for a surprise. Their Brachetto D’acqui Birbet is a beautiful, succulent red that seduces you. Note that Malvira’s Roero Arneis Sargietto is highlighted in 1000 Wines to Taste Before You Die. If you haven’t ever tasted an Arneis you will be surprised by the wonderful flavors. TB first tasted it at Vietti in Piemonte, on a private tour by founder Alfredo Corrado, then in his 80’s and recently deceased. Roero means wild and Arneis is the river that flows through Piedmont stretching past Asti and Alba. He was the Robert Mondavi of the Piedmont region, an unbelievably wonderful man. Caution: never buy an old Arneis…the one cited in the book was a 2004. They should be drunk young and not exposed to heat. Two of the reps/pourers (Marcus and Dustin) as well as a young lady sang opera spaced throughout the tasting adding to the experience.

Kudos to Patti and RJ for both of these events and there will no doubt be more to follow.

Okay, back to work on sorting out the trip. Several of the posts will be up over the next week or so. Hope you enjoyed this one. Au revoir, ciao, adios, friends. If you enjoy the site simply add your email – you can cancel it at any time.

TB

©Copyright 2015 TBOW, all rights reserved.

Vol. 1 No. 21…to the Central Coast and back… (updated 9/14)

(Updated to add places of interest)

…and since I have been back it has been to hell and back for TB.  Thought I had fully recovered from my ‘throatectomy’ but ended up with a severe infection that took everything out of me: unable to read, unable to write, unable to focus. Quite a trifecta that!

So here we go…a week ago today we were in one of our favorite places on earth, the Hotel del Coronado. It was our third visit there and while the cost has gone up over the past 20 plus years, so has the service. It is a world-class resort!

We were there for the marriage of our close friend’s daughter and the culmination of a trip that began ten days earlier. We flew into LAX arriving at 8:30am, got our car and headed north on the 405 – zipping along in the carpool lane, which was sparsely populated, while the rest of those silly Angelenos crawled in traffic (true Angelenos detest carpooling…loathe it!). We then got on the 101 headed towards Santa Maria where we had a luncheon engagement at Qupé/ABC vineyards and still managed to arrive at noon while the traffic going into L.A. was still bumper to bumper (what kind of hours do those people have?).

We were honored to have been invited to lunch at the winery as the location is not marked, only their two tasting rooms in Los Olivos and Santa Barbara (at the end of this column get a chance to see this remarkable working winery for an incredible experience with two of the finest winemakers not only in California, but globally (doubt this?  In the book, 1001 Wines to try before you die, one of EACH of their wines made the list: their Qupé Syrah, and the Au bon Climate Santa Maria Pinot Noir, both deservedly so!).

Assistant winemaker Marissa Beverly, took us on a tour of the barrel cellar where she ‘thieved’ some samples  for us and then we saw the must from the grapes that had been pressed, fermented, and were being moved into barrels to begin the long aging process.

Then we sat down at a beautiful table (actually two together which were beautiful panels made from tree trunks with Katie O’Hara who handled the arrangements for us, Jim Adelman, General Manager. In the center of the table were eight bottles of wine which we were instructed to try each one as part of the ‘deal’. The first was a Qupé Marsanne (75% Marsanne, 25% Rousanne), which we found incredible. Next came an ABC Bien Nacidos 2011 Chardonnay from the vineyard that adjoins the winery and is the most famous in the area. Next came two ABC Pinot’s a 2011 Santa Maria ‘La Bage Au-dessus , a Pinot lovers dream. Next came a bigger Pinot, the 2012 Isabelle which had incredible balance and flavor.

All of these wines went well with a spicy tilapia that at first looked like bruschetta since it had diced tomatoes on it, along with a spinach salad. We then had a Qupé 2012 Grenache, one of my favorite wines. About this time It occurred to me that I had missed the second Pinot, the ABC 2012 Isabelle which had incredible balance and flavor. For that mistake I was told I had to start at the beginning for my sin/omission. Once the laughter subsided they said they were joking.

Another Qupé followed…another of my ‘go to’ wines, the 2010 Syrah, also from Bien Nacido, and it did not disappoint.

Then came two wonderful surprises! Bob Lindquist and his wife make an incredible 2011 Tempranillo from the Sawyer Lindquist Vineyard. Absolutely loved it.  The finale was from the Clendenon Family Vineyards, an unbelievable 2010 Petit Verdot from the Bien Nacido Estate. These last two were my favorites, but I ended up buying a mixed case to taste and distribute on the rest of the trip.

Just when I thought the day couldn’t get any better, I met with another old friend from the Central Coast Wine Tasting days, Lane Tanner, arguably ‘la grande dame’ of the Central Coast and the first person to have a winery that only produced Pinot Noir…mostly from Bien Nacido. I met Lane when I was representing Lamborn Family Vineyards at the tasting. She looked familiar and I asked if she was Heidi Barrett (winemaker, consultant and producer of the great Screaming Eagle cabs). Her answer shows how down to earth she is: “No, I’m Lane Tanner, I wish I was Heidi Barrett.” That statement spoke volumes about her. She gave up the winery and has a new project now, Lumen Wines, with Will Henry of the Henry Wines Family, who has returned to the Central Coast from New Zealand where he was a winemaker. They are now ‘garagistes’, a term that is well known in Europe and there are several  in the Central Coast region, that love and produce great wines in small quantities. Lane was very busy, as was Will but they gave me some of their precious time to fill me in on their operation.  While I didn’t get to try the Pinot Noir yet, there is a wine reviewer called the Pinot Report by the Prince of Pinot, that rates only Pinot Noirs, that gave Lane a 95 point rating on her 2013 Sierra Madre Vineyard Pinot, the highest he has ever given to a wine from that vineyard. Only 50 cases were produced.

We visited a friend and former client in Templeton by Paso Robles that lives on a large estate just out of town. Very secluded and beautiful. When we left they presented me with a bottle of wine I had never heard of from the area a Saxum 2008 Booker Vineyard Syrah from Paso Robles, a powerhouse wine, or as some would say a fruit bomb, 15.8%ABY, a lot for an old man like me. A very nice present.

From there we began our trip southward, first to Bakersfield for a reunion with friends, then to Pasadena to see another friend and her daughter, then to Costa Mesa with more of our close friends, distributing and sampling the wines we had purchased along the way. The remaining four bottle of wine went to the bride and groom who have developed a taste for red wines and will indeed enjoy them.

That left us with just the Lumen and the Saxum to put in insulated bags since thanks to the TSA, they had to be in checked luggage but they survived the trip home with no problems…no just letting them settle again.

You now have a preview of what my book will be about and who the three representatives from the Central Coast will be. They meet all the criteria: long time acquaintances, recognized in the wine community, and passionate about what they do.  They have all stood the test of time.

As promised, here is an opportunity of a lifetime…or at least the next six months. The only way I was able to visit the Qupé/ABC winery was that I had met Bob and Jim years ago and they were interested in working with me on my project. We had just set up the visit when a favorite restaurant of mine in Oakland, Bay Wolf, had requested they come for one of the final week dinners. They always had duck on the menu and I believe they were the biggest seller of their wines. I know I had a few ABC’s there with my duck in the past. I just found this on the website however:

Places of interest…if you’re going:

Santa Maria:

I used to send everyone I knew to the Far Western in Guadalupe, home of Santa Maria barbecue. but found out on this trip it has moved a bit south to Orcutt and is not the place it used to be, so am withdrawing all recommendations for it.

Will you be there on Sunday, October 11th, 2015? Then don’t miss this opportunity:

11 am to 3 pm Qupe/Au bon Climat winery…and more!

The winery, located within the beautiful Bien Nacido Vineyards in Santa Maria, is usually closed to the public but opens twice a year for this amazing event. Current releases and library editions will be available (over 70 wines!) for tasting and sale from Qupé & Verdad along with Au Bon Climat, Clendenen Family, Barham Mendelsohn, Vita Nova, Ici la Bas, and more. Towards the end of the day, Bob has been known to open some rare, library wines in large format. A wonderful, hot lunch is included. It’s a deal at $20 per person. Wine Club members of ABC or Qupe are free (2 per membership). No reservations are necessary. The winery is located at 4665 Santa Maria Mesa Road, Santa Maria, CA 93454. For more information, call the tasting room at 805-686-4200.

If you are in the area, planning to be in the area, or can arrange a trip…it’s just three hours from L.A., by all means do so! You won’t be disappointed and will have a chance to meet these two great winemakers! If not, this is a twice a year event so mark you calendars for April 2016!

To those planning a trip to the area, I highly recommend staying at Petit Soleil, a small B&B in San Luis Obispo. Incredibly nice owners and there are no big picnic tables were you have to sit with people you don’t know but many small tables for two or four in a beautiful dining room or out on the terrace. It is the country inn you look for but seldom find in France. Highly recommended!

Our final destination was the beautiful, historic, 125-year old Hotel del Coronado for a wedding of one of our closest friends daughter. It did not disappoint…definitely a world-class resort that cannot be replicated. Highly recommended!

Also found a new and exciting Italian restaurant in downtown Los Angeles:

The Factory Kitchen, 1300 Factory Place (off Alameda). A really nice upscale Italian restaurant. The Assistant Manager, Francesco Sinatra (I kid you not!), will go out of his way to make your visit memorable.

After dinner, try Perch, a rooftop lounge in downtown which is a beautiful sight at night from amid the highrises. 448 South Hill St.

Laguna Beach:

Las Brisas, 360 Cliff Drive. Stunning views of the bay from San Clemente Island to Catalina. This is the old Victor Hugo Inn (where TB and his wife dined on our honeymoon, 46 years ago!). Owned by, but you would never guess El Torito! Just do it!

Wow…that wasn’t so hard…

TB

©Copyright 2015 TBOW, all rights reserved.

Vol. 1 No. 20 …oh God…not another wine book!

Yes, friends, sad but true. I am working on a book ‘related’ to wine but more about the people who make it. In France, they are called ‘vignerons’ or tenders of the vines…did you know: there is no word for winemaker in France.

If one has an ego, and has made wine they might object, but the truth be known, wine is agriculture, even though it is known as the ‘wine industry’. Don’t take TB’s word for that…he was told that 35 years ago by the late, great Joe Heitz and if anyone want argue that, I would propose that he knew more about grapes, wine, and winemaking than most of the people on the planet.

My first experience with wine was…64 years ago…wait a minute, TB, you are only 70 (70-1/2 to the IRS unfortunately). It’s true: it was Christmas Day at my uncle’s house for our family dinner, my birthday was the next day. It had been decided that I should have a small ‘taste’ of wine in a glass and that is how my education in vino began. It was, not coincidentally, the first time I got drunk! It’s true! My dad was pouring and since I had finished the thimbleful of wine in my glass and he wasn’t paying attention…as they say, to the brim! I must have thought it was pretty good because all of a sudden my uncle looked at me and my eyes were rolling. Quietly, he got up and took me for a walk around the block – twice. By the time I got back I was okay…I didn’t recall the details but him taking me for a walk is still in my memory.

That implies that I now have 64 years of experience under my belt…well, sort of with a more or less imposed sabbatical from 6 to 18. When I was 20 I was at a training school at the Mare Island Naval Shipyard in Vallejo, CA. On weekends, we had two choices, more or less: go north for wine tasting in Napa Valley, or south to San Francisco. When the direction was north it wasn’t as much to admire the attributes of wine as to get a buzz…and it didn’t cost anything.

But I really became interested after I got married in 1969 – 46 years ago and counting. I had some incredible adventures tasting wine…we went to the new Robert Mondavi Winery in Oakville, the same year we got married…it was incredible then…against the other old buildings…and note that they were not right on top of each other but spread out. I knew nothing about the Silverado Trail side of the valley, Howell Mountain, Mayacamas Mountains, Sonoma, Etc. Carneros? What was that? …there was nothing there. By the way, I grew up in L.A. (Santa Monica), and recall the old Virginia Dare winery out by Ontario…not the stuff that memories are made of, just sweet (and not in a good way).

Okay, now you have some background, so you probably think I am going to tell you what you should and should not be drinking, that what I like is what you, dear reader should race down to the nearest liquor store or wine shop and stock up on – even if you don’t like it. That isn’t going to happen, because you are your own best wine expert, which could change if you decided you were interested in learning more and trying other wines so you can enjoy it more.

Not that you have to…you could sit back and drink Two Buck Chuck, which is more like $4 most places as the states make them pay more…like upchucking…sorry, couldn’t resist. No,I am going to mention wineries in the course of discussing the people who make them, and the wines they produce, and by virtue of the fact that I am writing about them you will know that I like them.

But as I travel from state to state (I already wrote my first write-up on a local winery here in Minnesota named Schram, if had had ‘sburg’ on the end of it many of you would recognize it immediately), but, no, this is a young couple I met and their passion captivated my interest. They have gone ‘all in’ in this venture and it shows. There are, I am sure, several (at least) like them in other areas of the country that we do not think of as ‘wine states’. Factoid: wine is made in ALL 50 states), I find that some of the wines can be pretty good and they are proud of their efforts.

There are a growing number of angry wine writers/critics out there. What are they angry about? About you getting ‘ripped off’ by paying more than $20 a bottle of wine as one blogger says. An another author says the same thing, in fact, he says he doesn’t want to see the winery, meet the winemaker, just pour it in my glass and I will decide. So much for the beauty and social benefits to wine. Hey, if I want to pay $50 for a bottle, I’ll do it…admittedly not often, but at least I will get a well-made wine with character, not some conglomeration from California’s Central Valley, that has no major flaws but what is it anyway?

By the way, Fred Franzia, head of Bronco Wines, makers of Charles Shaw, aka Two-buck Chuck. He produces 3,000,000 bottles a year, so yes, if he can make $1 a bottle, he should be happy. In fact, he says, “you should never have to pay more than $10 for a bottle of wine.” Hey, Fred, I get you…but I’m surprised you don’t cap it at $5…or is that a sign that a price increase is coming?

Now you have seen what put the focus of the book on the people behind the label…they are hardworking ‘farmers’. Furthermore, these are people I met years ago and have followed, and was pleased that they are willing to be interviewed for the book, some are friends, others merely acquaintances. The only exceptions are the people in other wine areas besides California, Oregon, and Washington.

I will have two or three people in each wine area. Are they the best? Some are, others are right up there, but all produce high quality wines. Hopefully, you will avoid the ‘$20 tops’ trap. On the other hand, I don’t believe there is a wine made worth more than $100. But wait, if you have the money, go for it. But the prices of the $1,000 and more wines are being driven more by speculators as most of this wine will never be drunk but traded like baseball cards…hey, didn’t that bubble burst?

Don’t take my word for this. Did you know that the second biggest tourist attraction in America – all of America – Napa Valley! Yep, right behind Disneyland, and from when I first went there and there was just a small motel in Rutherford (I believe), there are several and you can expect to pay as much as $1,000 a night – perhaps more to stay there. That means there are a lot of potential DUI’s going elsewhere after a day of tasting and many don’t have a designated driver at the wheel.

The biggest wine event in America, I believe, is the Napa Valley Wine Auction, where people can bid up others wines as they bid up theirs. What the hey? It’s all for charity. The most expensive bottle of wine sold there was a Jeroboam of Screaming Eagle cabernet produced by Heidi Barrett, wife of Bo Barrett, owner of Chateau Montelena. It sold for…drumroll please…$500,000, or $22,944 for a four-ounce glass. When told it sold for that price, Heidi said she was pleased, but added, “It’s wild, you drink it, and it’s gone. My brain doesn’t get it” That sums up TB’s feelings on expensive bottles but he was lucky enough to have been able to try many of the great wines before they reached those heights.

So what is a fair price for a wine? What you, winelover, are willing to pay for it, and if you enjoy it, who cares what Trader Bill or any wine expert says? It’s your life…your money…enjoy!

Now you have a brief synopsis of what the book is all about…don’t tell anyone else and let them steal TB’s idea. On second thought, maybe you should so I can sue them and be rich! Really Rich!

TB

©Copyright 2015 TBOW, all rights reserved.

Vol.1 No. 19 …how sad it is…

As mentioned in TB’s last post, it was hard to focus on writing (impossible?) following that awful tonsillectomy. That said, time wasn’t wasted as he read several valuable wine books, and some that he found irritating but good tools of how he did want and did not want to write ‘his’ book. In later posts, I will provide names of the ones I found of value and a brief synopsis.

As one of the authors started out, “why another wine book?” That in itself is a valuable question as most aspects of wine and the industry have already been written abuut, both by ‘experts’ (pseudo-experts?), and those who are very angry…how can one be angry about something that lends to socializing and relaxation to life? Dunno. Who is the best judge of what is good wine? You, the consumer…all that matters is your taste and price range, not what TB or anyone else says. Therefore, while TB might mention a wine he truly likes, he won’t tell you to like it, nor will he EVER accept anything of value for any comments or recommendations – there are far too many that do!

What they are angry about is wine prices! One says “you should never pay more than $20 for a bottle of wine.” Never? Who says? That blogger and now author, who has never (by his own admission) even taken a wine appreciation course, and has devised a ten point rating scale where after HE has tasted it and evaluated it, and then subtracts points for each dollar above ten! This says that economics drives supply and demand, not pleasure. Of course with all those 90 and 95 point scores facing you when you go to purchase, you are influenced by them (or at least until you realize that your tastes might be different from the scorer, be it Robert Parker or some other ‘eggspurt’).  But do you buy a car based on price or on a rating provided by Consumer Reports or a car magazine? Would you buy a house based on price rather than location, location, location?

Winemaker Fred Franzia says, “you should never pay more than $10 for any bottle of wine.” Oh, how special! But who is Fred Franzia? He is the head of Bronco Wines…never heard of them? Then what about Charles Shaw, aka Two-Buck Chuck, the most popular (sic) wine in America? Frankly, if TB was Fred, he might say the same thing, but he isn’t! Just as some critics rate quality, or their definition of it, a growing number of writers and bloggers rate based on price (and some are compensated, either directly or indirectly for their comments), and again, who says that my taste in wine is the same as theirs?

There is a laboratory in Napa where a winemaker can take a sample of his wine and have it analyzed. By chemical analysis and especially phenol’s, they can tell her what she needs to do to make a 90 point wine…guaranteed! …and it works as they have been doing this for well over ten years! So much is this process utilized (some call it ‘chemical soup’), that the number of 90 point wines has gone off the charts…how many times have you seen a wine in a store with an 80 something rating? One store owner even said, “I can’t keep a 90-point wine in stock and I can’t sell a wine with a 88 rating.” If that 90-point only buyer is you, you have become a wine snob…but isn’t just as bad to say ‘never’ pay more than $20 or some other arbitrary number…by the way in 1970’s prices that is about a $5 wine…about what Mondavi, and other major producers were able to get for their wines (if you doubt this, I have bottles with $4.95 price tags on them…one is a Mondavi Cab. I also paid a ‘huge’ $25 a bottle for the Heitz Martha’s Vineyard, which I purchased a case of from Joe when it was released. It was so good I suddenly realized that I was down to ONE bottle! There is one bright side to those high ratings (Robert Parker, who was extremely stingy with his 100-point ratings on a scale he devised or at least made famous, has now give well over one hundred wines a 100-point rating…absolute perfection, and not just a bit of grade escalation): while the 90 plus ratings attract buyers, the awards are not causing the prices to jump as much as before…just bought more.

I held on to that bottle and finally sold it at auction with my Bordeaux wines and a bottle of Screaming Eagle. The Eagle sold for $800 at auction and the Heitz for $400! I couldn’t afford to drink either one, and as then-winemaker at Screaming Eagle, Heidi Barrett said after a Jeroboam of her wine sold at the 2000 Napa Valley Wine Auction for $500,000 (to put that in perspective that equivalent of six bottles worked out to just under $23,000 for a four-ounce glass): “It’s wild. You drink it, and it’s gone. My brain doesn’t get it.” …and if Heidi’s doesn’t, ours shouldn’t even be able to fathom the idea.

This brings us to another conclusion: most wines at even $100 aren’t within the reach of (or desire?), most people. Back in the late 1980’s it was being touted that the Japanese would buy up all the great wine in the world…well, they didn’t since their economy imploded in 1989 and hasn’t recovered since. Then in the documentary Red Obsession, they projected that the Chinese would do it…and like the Japanese their obsession was with only the top first growths from Bordeaux and Burgundy. There was a setback however since much of those purchases were for ‘gifts’ to business associates and to grease the palms of government officials. That put a damper on the price escalation but not enough to stop the top Bordeaux from selling for well over $1,000 a bottle!

But where are these wines going? Again, dunno. But they are being shipped to warehouses where they are traded – much like bitcoins – with no actual deliveries made. Some of these warehouses have sustained losses and at least one went bankrupt…still the prices continue to rise. To TB, it is a toss-up between who is the bigger fool: the bitcoin or the Bordeaux buyer? Meanwhile, the winelover is being cheated by not ever being able to taste these wines.

Back to the anger. In the preface to one wine book, an author who has asserted to teaching more than a thousand wine classes, and even more wine expos, states: “I am beholden to no one in the wine industry. I am a nonlistener to wine talk and a nonbeliever of wine publicists, and I have zero interest in winery owners, winemakers, and their glad-handing gunsels. ‘Shut up and put it in the glass,’ I say. I am difficult, I admit it. But it’s the best way I’ve found to wade through oceans of mediocre wine in my search for pearls.”  You aren’t difficult…you are impossible!

I purposely give no attribution to these two gentlemen, however I am indebted to them for focusing me on what I want MY book to be about: the faces behind the wine.

Contrary to the author cited, I have met dozens of winemakers and wine advocates (not you, Mr. Parker), in the U.S. and Europe. Most of them are hard workers who consider themselves in agriculture, as Joe Heitz told me. Look at their hands…some of the women in the industry have hands and faces weathered by the sun working in something they love. I first had wine when I was six years old! SIX! It was Christmas and it was decided I should have a very small sip of wine…but my dad was pouring and without realizing it filled my glass after I had had my sip. I liked it and soon my uncle saw my eyes rolling in my head and very discretely took me for a walk around the block. From about 18 I tended bar at my other aunt and uncle’s parties. I was fascinated by wine, and later Trader Vic, the greatest mixologist of all time. When I lived in San Francisco I was fortunate enough to meet him….that is where I settled on Trader Bill as a moniker – both for my earlier financial blog and now my wine endeavors (I like it that Trader Joe’s is also on a similar vein and will discuss theirs, Costco’s and now Total Wines in future posts), and  Now that I am 70, I have about 52 years of experience with wine…yet, I would consider myself an advocate…not an expert!

I have long contended that if you taste wine in a setting where you have access to the owner/winemaker, not some twenty-something college student being paid to pour and maybe recite a few lines about the wine and the winery, you will mentally score the wine higher…and that, folks, is a good thing.

That is enough for now, with more on the book in later posts.

Thank you for reading,

TB

©Copyright 2015 TBOW, all rights reserved.