Grapevine: Following the Winding Trail of a Virtual Winery
“Ink stains, not grape stains, cover his hands.”
In recent weeks, we’ve explored the state of winemaking and winemakers in 2014. From traditional winemakers who grow their own grapes and produce their own wines, to trend-setting winemakers who own no land, no winery and no storage facilities, we’ve become accustomed to focusing on what’s in the bottle, not on the label.
Likewise, regardless of the ownership (or lack thereof) of the physical location and facility where wine is produced, we’ve considered whether wine is made in the vineyard or in the winery.
The final wine produced is the result of where the grapes are grown. But what influence does the winemaker have over the ultimate product? This has been a running debate for decades, but more so in the last 10 years, as the number of virtual wineries has grown exponentially. Nowhere has this phenomenon been as evident as in the United States – with California leading the way.
Many of these virtual wineries are owned by nouveau wealthy entrepreneurs who amassed fortunes during the last 15 years, most notably during the last two technology booms and the financial run-up prior to the Great Recession. “Gentlemen winemakers” is a term I’ve been using to describe these entrepreneurs, who became aware of the finer luxuries of the good life and then invested in those industries that piqued their interests.
Napa Valley is dotted with the likes of winelovers turned winemakers. A number have grape-stained hands from crafting their own wines while others have ink-stained hands from writing checks to purchase wineries and hire talented winemakers who are imbued with their employers’ passion for a particular style of wine from a particular grape.
I have discussed each of the above virtual components of 21st century winemaking these past few weeks. This week I thought it appropriate to provide an example of a nouveau riche winemaker.
I’ve selected an investment banker who began dabbling in wine as an avid consumer and then developed a passion for owning a trophy winery. Inspired by his success — and becoming increasingly focused on sharing his passion for wine with the masses – he has amassed an impressive portfolio of wine brands, while continuing to successfully ply his professional career as an adviser.
Charles Banks amassed his fortune with a capital investment company in San Francisco. In 2006, at age 38, he and a partner acquired what is arguably the most highly regarded of all American wineries, Screaming Eagle (the 2010 vintage sells for nearly $3,000 a bottle), catapulting him to the top of the trophy-winery stratosphere. After only three years he sold his enviable interest and moved on, smitten by the desire to bring wines to the masses.
For the next four years, he laid low, sniffing out his next investment opportunities. Through Terroir Selections, one of his investment groups, he launched a buying splurge last year, acquiring, among others, highly regarded Wine Gap, Qupé and Mayacamas wineries in California, Evening Land in Oregon, and additional wineries in select international wine regions.
Through another venture, Cultivate Wines, he is now dabbling in purchasing and processing grape juice from vineyards in the United States, South Africa, New Zealand, Argentina, Italy and Chile.
A very impressive, well-balanced, long-term growth portfolio, to paraphrase financial-market terms.
His business plan appears simple. Utilizing his successful blueprint for the financial world, he identifies successful wineries and plies the owners with cash. Once snaring his target, he provides management expertise to increase the quality – and profitability — of the operation. It is ink stains, not grape stains, which cover his hands.
So how successful have his recent investments been? And what of the quality and price of his wines? Is Banks still a virtual winemaker or is he is a new breed, an investor with a combination of ink- and grape-stained hands? Next week I’ll present a profile and tasting notes for several of his wines.
Nick Antonaccio is a 35-year Pleasantville resident. For over 15 years he has conducted wine tastings and lectures. He also offers personalized wine tastings and wine travel services. Nick’s credo: continuous experimenting results in instinctive behavior. You can reach him at nantonaccio@theexaminernews.com or on Twitter @sharingwine.
