The Grape Vine

How to Make a Small Fortune in the Wine Business

People in the wine business often say that the way to make a small fortune in the wine business is to start it with a big fortune. Traditionally, profits in the wine business in California have been primarily reserved for a privileged few, such as Gallo, Mondavi, and Two-Buck Chuck’because of their huge production and high-priced marketing. But a few boutique wineries get a reputation and then make a profit because of the high sales price compared to production costs. For such winemakers as the Firestone family, the Staglin family, and Walt Disney’s daughter, I’m not sure that profit is much of a motive. But for most winemakers in California, the cost of the land, the structures, the equipment and the labor (even at minimum wage) puts vintners under a heavy financial burden. It’s not that way in the small boutique wineries in France and Italy, where the winemaker often inherits the land and winemaking facilities from their ancestors, and the extended family makes the wine. I’ve known producers whose only cost in making the wine is to pay for the bottles and labels (a total of about $1.25 per bottle). So you have to take your hat off to Palisadian Tim Perr, co-founder of the Pali Wine Company in Lompoc. With a degree in applied mathematics and statistics, he did his homework before starting up the company, and he figured out that the odds were with him. Pali’s latest wine move is the Cuv’e program, with a lower priced pinot noir named after areas of Pacific Palisades. ‘The Huntington,’ ‘The Bluffs,’ even an ‘Alphabets’ pinot noir! Now that’s what I call an inside joke!   Why do some of these red wines sell for $50 a bottle while others go for $20? Well, the $50 wines are ‘Vineyard Designate wines.’ That means all the grapes come from the same vineyard. The Cuv’e wines, which sell for $19, are made from pinot noir grapes amassed from several different vineyards, but within a common ‘American Viticultural Area.’ When you make wines from grapes grown in different vineyards, you have to blend the grapes to get the best flavor. One would think that in light of that fact, that blended wines would be better than wines from a single vineyard because one would have better control over the taste with the blending process. But for some reason, that’s not the way the wine world works, and the single vineyard wines sell for more. But you might not find that they taste better. I asked Tim what he looks for in a pinot noir wine. Here is his reply: ‘The nose should be perfumed and enticing. I enjoy both red and black flavor profiles in pinot noir, and a modest amount of minerality. I do not like the under-ripe or green flavors in pinot (which were all too common among California pinots of the past). The mid-palate should be substantial but not syrupy. Oak should be present but not overpowering. The finish should be long and bright’I enjoy the more acidic wines. Tannins in pinot should be silky and not drying.’ As for his favorite local restaurants, he mentioned a nice diverse selection: Boa, Josie, Melisse, Rustic Canyon, and the Oak Room. Finally, I asked Tim what kind of wines he and his partners drink. He said, ‘My partners and I enjoy a diversity of wines from all around the world’red, white and ros’. For myself, I have moved away from California cabernets because they have tended to be too syrupy and oaky. I prefer Bordeaux for their balance. Of course, I love a good Burgundy, but I find my strikeout rate too high, given their cost. Most of the time, for reds I drink California pinots from the producers I like”Kosta, Browne, Loring, Auteur, AP Vin, and a few others. For whites, I love chablis (or chablis-style chardonnay). I also enjoy the less expensive fruity white wines of Italy. A good ros’ is one of the most versatile wines in the world. Nothing like a cold ros’ on a hot afternoon. Better than a beer, if you ask me.’ Pali wines can be found at the local Gelson’s market and on the wine list at the Oak Room.