Chateau Montelena was sold today to the French Estate Chateau Cos d'Estornel. The price of this deal is unclear, but according to the Wine Spectator, Montelena fielded offers between $120 and $150 million for this Napa winery and vineyards.
Some of my colleagues reacted with disgust as I shared the news with them. For the US to be selling out to the French...it was so....unpatriotic!
I disagree. This is not the first major winegrower to sell out to a European wine house. Last year Stags Leap Winery was sold for $185 million and Duckhorn for $250 million or more. This is the start of a trend.
Montelena and Stags Leap wines emerged well ahead of all other US winemakers in 1976. There was a competitive wine tasting in Paris, now referred to as "the Judgement of Paris" where French judges named Chateau Montelena's 1973 Chardonnay as superior to all of the hallowed French Burgundy producers. Everyone was shocked, the French unpleasantly so and the Americans ecstatic. This put American wines on the map.
This is such a compelling story that Hollywood took notice. In January, during the Sundance Film Festival, "Bottle Shock" was premiered telling the Montelena story. There have been some notions that "Bottle Shock" will increase Montana's profile in the same way that the movie "Sideways" did for Pinot Noir. Although not yet released in theatres, you can bet that Cos d'Estornel will be more then willing to fund its distribution.
The more important economic issue here has nothing to do with our domestic wine gems being sold. It has to do with America's addiction to borrowing. We have long been the worst savers in the world. Our economic growth and innovation has allowed us to stay on top for a very long time. The global economy though, is starting to catch up.
The dollar, long the benchmark currency in the world, is being supplanted by the Euro. The dollar and all assets valued in dollars are down right cheap. Lets just say that America is "On Sale". Just last week we saw Anheuser -Busch, parent company of the iconic American "Budweiser" brand, sold to the Belgian brewer Ambev. These deals are only the first of many American brands that will be sold.
We have to change our culture in the United States from spend to save. Our complaints regarding the price of oil, gold and other commodities are falling on deaf ears outside of the US. The dollar is no longer the currency of choice.
Some of my colleagues reacted with disgust as I shared the news with them. For the US to be selling out to the French...it was so....unpatriotic!
I disagree. This is not the first major winegrower to sell out to a European wine house. Last year Stags Leap Winery was sold for $185 million and Duckhorn for $250 million or more. This is the start of a trend.
Montelena and Stags Leap wines emerged well ahead of all other US winemakers in 1976. There was a competitive wine tasting in Paris, now referred to as "the Judgement of Paris" where French judges named Chateau Montelena's 1973 Chardonnay as superior to all of the hallowed French Burgundy producers. Everyone was shocked, the French unpleasantly so and the Americans ecstatic. This put American wines on the map.
This is such a compelling story that Hollywood took notice. In January, during the Sundance Film Festival, "Bottle Shock" was premiered telling the Montelena story. There have been some notions that "Bottle Shock" will increase Montana's profile in the same way that the movie "Sideways" did for Pinot Noir. Although not yet released in theatres, you can bet that Cos d'Estornel will be more then willing to fund its distribution.
The more important economic issue here has nothing to do with our domestic wine gems being sold. It has to do with America's addiction to borrowing. We have long been the worst savers in the world. Our economic growth and innovation has allowed us to stay on top for a very long time. The global economy though, is starting to catch up.
The dollar, long the benchmark currency in the world, is being supplanted by the Euro. The dollar and all assets valued in dollars are down right cheap. Lets just say that America is "On Sale". Just last week we saw Anheuser -Busch, parent company of the iconic American "Budweiser" brand, sold to the Belgian brewer Ambev. These deals are only the first of many American brands that will be sold.
We have to change our culture in the United States from spend to save. Our complaints regarding the price of oil, gold and other commodities are falling on deaf ears outside of the US. The dollar is no longer the currency of choice.
For my part, I am going to continue to find wines that provide superior value and quality. The wines are out there and the winemakers are looking to be discovered. I am going to pass on the big name wines for which we pay for reputation more then substance. I would encourage all of you to do the same.
Congratulations to Jim and Bo Barrett, owners of Chateau Montelena and America's newest multi-millionaires!
