This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.nytimes.com/2020/05/09/business/beckstoffer-wine-napa.html

The article has changed 15 times. There is an RSS feed of changes available.

Version 13 Version 14
The Grapelord of Napa Faces a Threat Worse Than Plague The Grapelord of Napa Faces a Threat Worse Than Plague
(8 days later)
One balmy winter afternoon, Andy Beckstoffer, a grape grower who has done more than nearly anyone to shape the premium U.S. wine industry, was sitting in Mustard’s, a restaurant in Napa Valley that is a kind of clubhouse for the vintner class. Although Beckstoffer Vineyards, the largest private grower in California, had recently set a sales record with a blockbuster harvest of $55 million worth of cabernet sauvignon, its founder was not in the mood to celebrate. The wine industry was in trouble, facing its worst outlook in generations — and that was before the coronavirus struck.One balmy winter afternoon, Andy Beckstoffer, a grape grower who has done more than nearly anyone to shape the premium U.S. wine industry, was sitting in Mustard’s, a restaurant in Napa Valley that is a kind of clubhouse for the vintner class. Although Beckstoffer Vineyards, the largest private grower in California, had recently set a sales record with a blockbuster harvest of $55 million worth of cabernet sauvignon, its founder was not in the mood to celebrate. The wine industry was in trouble, facing its worst outlook in generations — and that was before the coronavirus struck.
The litany of plagues was merciless: too many grapes, thanks to an epic haul in California and Washington. Too many wildfires and weird bugs unleashed by climate change. Too many new wineries in Napa, upsetting the balance of agriculture and hospitality. And then there were the millennials, or millenniums, as the 80-year-old Mr. Beckstoffer likes to call them.The litany of plagues was merciless: too many grapes, thanks to an epic haul in California and Washington. Too many wildfires and weird bugs unleashed by climate change. Too many new wineries in Napa, upsetting the balance of agriculture and hospitality. And then there were the millennials, or millenniums, as the 80-year-old Mr. Beckstoffer likes to call them.
The generation born between 1981 and 1996 has been blamed for killing everything from napkins to homeownership, and thanks to its passion for hard seltzer, liquid marijuana and other drinkable novelties, it’s been cast as the murder hornet of the wine industry as well. Mr. Beckstoffer finds their health-crazed rituals (Drynuary?) puzzling.The generation born between 1981 and 1996 has been blamed for killing everything from napkins to homeownership, and thanks to its passion for hard seltzer, liquid marijuana and other drinkable novelties, it’s been cast as the murder hornet of the wine industry as well. Mr. Beckstoffer finds their health-crazed rituals (Drynuary?) puzzling.
“Wine is plant-based,” he said, shaking his head and picking mirthlessly at a spinach and mushroom burger. “Why don’t the millenniums drink it?”“Wine is plant-based,” he said, shaking his head and picking mirthlessly at a spinach and mushroom burger. “Why don’t the millenniums drink it?”
A few weeks later, Mr. Beckstoffer’s anxiety was borne out by the publication of Silicon Valley Bank’s annual report on the U.S. wine industry — probably the most influential analysis of its kind. For years, its author, Rob McMillan, has preached about the alarming convergence of two trends: higher and higher bottle prices at the premium end of the market, and millennial indifference. Some farmers and winemakers have brushed Mr. McMillan off, and this time, he amped up the urgency, writing plainly: “The issue of greatest concern for the wine business today is the lack of participation in the premium wine category by the large millennial generation.”A few weeks later, Mr. Beckstoffer’s anxiety was borne out by the publication of Silicon Valley Bank’s annual report on the U.S. wine industry — probably the most influential analysis of its kind. For years, its author, Rob McMillan, has preached about the alarming convergence of two trends: higher and higher bottle prices at the premium end of the market, and millennial indifference. Some farmers and winemakers have brushed Mr. McMillan off, and this time, he amped up the urgency, writing plainly: “The issue of greatest concern for the wine business today is the lack of participation in the premium wine category by the large millennial generation.”
The people who make wine don’t just age grape juice, they ripen customers, too, helping them evolve from undergraduate jug-swillers into middle-aged buyers of prestige labels. That process, Mr. McMillan says, appears to have stalled. Even as their purchases of other luxury goods have increased, millennials have balked at high-priced cabernets, which combined with the coronavirus makes 2020 “the worst time since Prohibition for fine wine producers in the United States,” he said in an interview.The people who make wine don’t just age grape juice, they ripen customers, too, helping them evolve from undergraduate jug-swillers into middle-aged buyers of prestige labels. That process, Mr. McMillan says, appears to have stalled. Even as their purchases of other luxury goods have increased, millennials have balked at high-priced cabernets, which combined with the coronavirus makes 2020 “the worst time since Prohibition for fine wine producers in the United States,” he said in an interview.
The home of fine American wine is Napa Valley, where few benefit more from high prices than Mr. Beckstoffer. The region has unquestionably the best terroir in the United States, and within it, the choicest land has his name on a billboard next to it. Starting in the 1980s, Mr. Beckstoffer began seeking out what he calls “the good stuff” — the vineyards with records of success going back a century or longer. He now owns six, including To Kalon, a plot in the center of the valley considered the crown jewel of American viticulture. For the privilege of squeezing Beckstoffer grapes, winemakers behind labels like Stag’s Leap, Schrader and Realm pay up to $25,000 per ton — more than five times the Napa average.The home of fine American wine is Napa Valley, where few benefit more from high prices than Mr. Beckstoffer. The region has unquestionably the best terroir in the United States, and within it, the choicest land has his name on a billboard next to it. Starting in the 1980s, Mr. Beckstoffer began seeking out what he calls “the good stuff” — the vineyards with records of success going back a century or longer. He now owns six, including To Kalon, a plot in the center of the valley considered the crown jewel of American viticulture. For the privilege of squeezing Beckstoffer grapes, winemakers behind labels like Stag’s Leap, Schrader and Realm pay up to $25,000 per ton — more than five times the Napa average.
All of which is to say: If the $71 billion California wine industry topples, then Mr. Beckstoffer, who values his empire at $500 million, may have the farthest to fall.All of which is to say: If the $71 billion California wine industry topples, then Mr. Beckstoffer, who values his empire at $500 million, may have the farthest to fall.
Most Napa farmers hold some of their grapes back from market, in order to press them into wine themselves. Not Mr. Beckstoffer, who sells every last orb of fruit he can.Most Napa farmers hold some of their grapes back from market, in order to press them into wine themselves. Not Mr. Beckstoffer, who sells every last orb of fruit he can.
“Andy’s different — he has no interest in making wine,” said Curtis Strohl, the general manager of B Cellars, a Napa winery. In fact, Mr. Beckstoffer finds the vinifying process a bore, and he doesn’t care about drinking great vintages himself. His rivals in Napa say he cares only about money. Mr. Beckstoffer says he cares about farmers and the land. But it seems clear that over the course of his 50-year career, as the valley transformed from a drowsy agricultural community into an inland yacht club, the two motivations have worked in concert.“Andy’s different — he has no interest in making wine,” said Curtis Strohl, the general manager of B Cellars, a Napa winery. In fact, Mr. Beckstoffer finds the vinifying process a bore, and he doesn’t care about drinking great vintages himself. His rivals in Napa say he cares only about money. Mr. Beckstoffer says he cares about farmers and the land. But it seems clear that over the course of his 50-year career, as the valley transformed from a drowsy agricultural community into an inland yacht club, the two motivations have worked in concert.
Mr. Beckstoffer — a courtly native of Richmond, Va., who pronounces vineyard “vin-yuhd” and “wine” as if it had three syllables — readily concedes that what brought him to Napa was the chance to make a killing. In 1967, recently graduated from Dartmouth’s Tuck School of Business, he was working for Heublein, an East Coast food and beverage conglomerate with products such as Smirnoff, Jose Cuervo and a pre-mixed tiki drink called Navy Grog.Mr. Beckstoffer — a courtly native of Richmond, Va., who pronounces vineyard “vin-yuhd” and “wine” as if it had three syllables — readily concedes that what brought him to Napa was the chance to make a killing. In 1967, recently graduated from Dartmouth’s Tuck School of Business, he was working for Heublein, an East Coast food and beverage conglomerate with products such as Smirnoff, Jose Cuervo and a pre-mixed tiki drink called Navy Grog.
The American palate was developing an appreciation for “quality wine.” That year, for the first time, more dry wine was sold than sweet. Mr. Beckstoffer helped Heublein acquire Inglenook, a cherished, family-owned winery that soon began pumping out “oceans of plonk,” as the novelist and wine critic Jay McInerney once wrote. Heublein also bought Beaulieu, where a similar transformation occurred.The American palate was developing an appreciation for “quality wine.” That year, for the first time, more dry wine was sold than sweet. Mr. Beckstoffer helped Heublein acquire Inglenook, a cherished, family-owned winery that soon began pumping out “oceans of plonk,” as the novelist and wine critic Jay McInerney once wrote. Heublein also bought Beaulieu, where a similar transformation occurred.
“The arrogance,” Mr. Beckstoffer said. “We bought the two best wineries in the valley and screwed it up.” Though still in operation, neither has returned to glory. Looking back “makes your heart hurt,” he said.“The arrogance,” Mr. Beckstoffer said. “We bought the two best wineries in the valley and screwed it up.” Though still in operation, neither has returned to glory. Looking back “makes your heart hurt,” he said.
Heublein’s bet swiftly turned sour. Spooked by labor issues, the company gave up on quality wine after a few years and started selling its Napa farmland — to Mr. Beckstoffer, who had resigned from the company and moved his family to the valley. By the 1980s, he had developed an ambitious agenda that would take decades to unfold.Heublein’s bet swiftly turned sour. Spooked by labor issues, the company gave up on quality wine after a few years and started selling its Napa farmland — to Mr. Beckstoffer, who had resigned from the company and moved his family to the valley. By the 1980s, he had developed an ambitious agenda that would take decades to unfold.
Like Robert Mondavi and a few others, Mr. Beckstoffer came to believe that a once-in-a-lifetime opportunity lay dormant in Napa’s soil. For more than a century, the potential of the valley’s wine had been recognized even by Europeans. But the quality was uneven and financial acumen was lacking, and as Mr. Beckstoffer saw it, the chance to create an American equivalent of the First Growths of France was being squandered — like a great but unknown painter in need of a sharp-elbowed dealer.Like Robert Mondavi and a few others, Mr. Beckstoffer came to believe that a once-in-a-lifetime opportunity lay dormant in Napa’s soil. For more than a century, the potential of the valley’s wine had been recognized even by Europeans. But the quality was uneven and financial acumen was lacking, and as Mr. Beckstoffer saw it, the chance to create an American equivalent of the First Growths of France was being squandered — like a great but unknown painter in need of a sharp-elbowed dealer.
“The farmers were good at farming, but bad businessmen,” Mr. Beckstoffer said. “You couldn’t make any money owning land and selling grapes.” He believed that the local wine would only reach its potential if it was strategically elevated into a luxury product — scarce, expensive, vigilantly branded — even if that meant leaving behind an Arcadian era centered on small family farms and affordability.“The farmers were good at farming, but bad businessmen,” Mr. Beckstoffer said. “You couldn’t make any money owning land and selling grapes.” He believed that the local wine would only reach its potential if it was strategically elevated into a luxury product — scarce, expensive, vigilantly branded — even if that meant leaving behind an Arcadian era centered on small family farms and affordability.
“In every agricultural area, there is a citizen hierarchy,” Mr. Beckstoffer said. “Here, winemakers are at the top, and farmers used to be at the bottom.” He once told an interviewer that his overriding goal was to give grape growers more clout.“In every agricultural area, there is a citizen hierarchy,” Mr. Beckstoffer said. “Here, winemakers are at the top, and farmers used to be at the bottom.” He once told an interviewer that his overriding goal was to give grape growers more clout.
With his Ivy League M.B.A. and corporate pedigree, Mr. Beckstoffer is not exactly a typical farmer. In the 1980s, when Napa was still oriented toward relatively humble varietals like zinfandel, an epidemic of phylloxera — a rapacious insect that feeds on the roots and leaves of grape vines — wiped out crops. Mr. Beckstoffer and others led the charge for a valley-wide replanting with the more glamorous cabernet, while introducing data analysis and other elements of industrial farming that magnified yields enormously.With his Ivy League M.B.A. and corporate pedigree, Mr. Beckstoffer is not exactly a typical farmer. In the 1980s, when Napa was still oriented toward relatively humble varietals like zinfandel, an epidemic of phylloxera — a rapacious insect that feeds on the roots and leaves of grape vines — wiped out crops. Mr. Beckstoffer and others led the charge for a valley-wide replanting with the more glamorous cabernet, while introducing data analysis and other elements of industrial farming that magnified yields enormously.
He also wielded back-room political skills to outmaneuver opponents. Like any good luxury item, Napa land is in short supply — 300 square miles, most of it owned by a few families and corporations. The question of whether to farm it, preserve it or use it to attract tourists is never far from any conversation. In 1990, as wine drinkers were developing a voracious appetite for Napa cabs at seemingly any price, Mr. Beckstoffer was the driving force behind a landmark piece of legislation, the Winery Definition Ordinance, requiring any wine with the word “Napa” on it to be made from 75 percent local grapes.He also wielded back-room political skills to outmaneuver opponents. Like any good luxury item, Napa land is in short supply — 300 square miles, most of it owned by a few families and corporations. The question of whether to farm it, preserve it or use it to attract tourists is never far from any conversation. In 1990, as wine drinkers were developing a voracious appetite for Napa cabs at seemingly any price, Mr. Beckstoffer was the driving force behind a landmark piece of legislation, the Winery Definition Ordinance, requiring any wine with the word “Napa” on it to be made from 75 percent local grapes.
The statute also limited what sort of social and commercial activities, such as weddings, could take place at wineries. A generation later, vintners still complain that the bill funneled business to its champion and crippled the rest of the valley.The statute also limited what sort of social and commercial activities, such as weddings, could take place at wineries. A generation later, vintners still complain that the bill funneled business to its champion and crippled the rest of the valley.
As Mr. Beckstoffer became a land baron among land barons, he also regularly enraged the winemakers at the top of Napa society, whom he dismisses as “blenders” and “media stars.” One article from 1990 describes an incident at a country club, in which a winery owner realizes that she has been seated near him and asks to be moved. Another quotes a winemaker calling Mr. Beckstoffer “a real snake.”As Mr. Beckstoffer became a land baron among land barons, he also regularly enraged the winemakers at the top of Napa society, whom he dismisses as “blenders” and “media stars.” One article from 1990 describes an incident at a country club, in which a winery owner realizes that she has been seated near him and asks to be moved. Another quotes a winemaker calling Mr. Beckstoffer “a real snake.”
Mr. Beckstoffer displays both articles on his website. “If you’re not making enemies,” he said, smiling innocently, “you’re just taking up space.”Mr. Beckstoffer displays both articles on his website. “If you’re not making enemies,” he said, smiling innocently, “you’re just taking up space.”
For good measure, he has also stymied real estate developers. As one of the sightlier parts of Northern California, with its majestic oaks and gaudy colors, Napa has some of the highest real estate prices in America and some of its most expensive hotel rooms. But Mr. Beckstoffer has long sought to choke off the development of Napa as a “lifestyle resort.”For good measure, he has also stymied real estate developers. As one of the sightlier parts of Northern California, with its majestic oaks and gaudy colors, Napa has some of the highest real estate prices in America and some of its most expensive hotel rooms. But Mr. Beckstoffer has long sought to choke off the development of Napa as a “lifestyle resort.”
Chuck Wagner, the founder of Caymus Vineyards, a prominent Napa winery, is one of many proponents of building up the region — more wineries, more hotels, more tourists. “People want to experience the beauty of the valley,” he said. “Andy is against additional business.” He added, “A lot of people believe that Andy does things for personal financial gain.”Chuck Wagner, the founder of Caymus Vineyards, a prominent Napa winery, is one of many proponents of building up the region — more wineries, more hotels, more tourists. “People want to experience the beauty of the valley,” he said. “Andy is against additional business.” He added, “A lot of people believe that Andy does things for personal financial gain.”
Mr. Beckstoffer insists he has higher principles, and despite his corporate sheen, when he talks about securing “agriculture in perpetuity” for Napa Valley, he has the unmistakable zeal of an ideological convert. The heritage vineyards he bought are now in trusts that cannot be developed or sold.Mr. Beckstoffer insists he has higher principles, and despite his corporate sheen, when he talks about securing “agriculture in perpetuity” for Napa Valley, he has the unmistakable zeal of an ideological convert. The heritage vineyards he bought are now in trusts that cannot be developed or sold.
“You have to ask yourself, what do you want to leave for your children?” he told me. “Someday, some spouse of a grandchild of mine will want to build a hotel on one of our vineyards — and they will hate me, because they can’t.”“You have to ask yourself, what do you want to leave for your children?” he told me. “Someday, some spouse of a grandchild of mine will want to build a hotel on one of our vineyards — and they will hate me, because they can’t.”
The Dr. Crane Vineyard is not what you think of when imagining world-class terroir. Wedged between a ready-mix concrete plant and a grade school, it is nevertheless one of Napa’s oldest vineyards, originally planted in the 1850s by George Belden Crane, the first grower to transplant European viticulture to Napa. Ignore the immediate surroundings — the drooping electrical wires and paved yards — and at the end of a winter day, with a pink sun falling behind the Mayacamas Mountains in the background, the rows of trellised vines look as picturesque as any #winecountry social media post.The Dr. Crane Vineyard is not what you think of when imagining world-class terroir. Wedged between a ready-mix concrete plant and a grade school, it is nevertheless one of Napa’s oldest vineyards, originally planted in the 1850s by George Belden Crane, the first grower to transplant European viticulture to Napa. Ignore the immediate surroundings — the drooping electrical wires and paved yards — and at the end of a winter day, with a pink sun falling behind the Mayacamas Mountains in the background, the rows of trellised vines look as picturesque as any #winecountry social media post.
Updated July 7, 2020
The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles.
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico.
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth.
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
“Look at the uniformity of the rocks!” Mr. Beckstoffer said, cupping one the size of an apple. Beckstoffer grapes are renowned for their consistency, the result of exacting and technology-driven farming, including heavy use of fertilizers. But most of what makes the heritage vineyards superlative is a mystery. “People say it’s the soil, or the climate,” Mr. Beckstoffer likes to say. “The truth is, we don’t know.”“Look at the uniformity of the rocks!” Mr. Beckstoffer said, cupping one the size of an apple. Beckstoffer grapes are renowned for their consistency, the result of exacting and technology-driven farming, including heavy use of fertilizers. But most of what makes the heritage vineyards superlative is a mystery. “People say it’s the soil, or the climate,” Mr. Beckstoffer likes to say. “The truth is, we don’t know.”
As he drove away, he gestured with the back of his hand at the valley’s suburban sprawl — light, by California standards. “There are very few places in the world where agriculture is the long-term, highest economic value, best use of the land,” he said. Napa used to have many vineyards as exceptional as Dr. Crane, he said, but now “they have a big house on top of them.” Asked how long he intends to own the property, he said, “Forever. Even if disease wipes it out, it will be a field.”As he drove away, he gestured with the back of his hand at the valley’s suburban sprawl — light, by California standards. “There are very few places in the world where agriculture is the long-term, highest economic value, best use of the land,” he said. Napa used to have many vineyards as exceptional as Dr. Crane, he said, but now “they have a big house on top of them.” Asked how long he intends to own the property, he said, “Forever. Even if disease wipes it out, it will be a field.”
When he talks of Napa farming, Mr. Beckstoffer speaks loftily, invoking paragons of American culture like skyscrapers and jazz. “You have to have a larger cause, something bigger than money,” he said. “This place is a national treasure. Napa Valley put American food and wine on the map.”When he talks of Napa farming, Mr. Beckstoffer speaks loftily, invoking paragons of American culture like skyscrapers and jazz. “You have to have a larger cause, something bigger than money,” he said. “This place is a national treasure. Napa Valley put American food and wine on the map.”
Mr. Beckstoffer’s holdings here total only about 1,000 acres, or roughly 2 percent of the valley’s planted area. But thanks to his near-stranglehold on prime vineyards like To Kalon and Dr. Crane, he can demand almost whatever price he wants for his product. Decades ago, he settled on a formula borrowed from Burgundy: For a ton of grapes, he would charge 100 times the price of a bottle made with them. In other words, if a bottle made from cabernet sauvignon grown at Dr. Crane retails for $150, the cost of buying the fruit equals $15,000 per ton.Mr. Beckstoffer’s holdings here total only about 1,000 acres, or roughly 2 percent of the valley’s planted area. But thanks to his near-stranglehold on prime vineyards like To Kalon and Dr. Crane, he can demand almost whatever price he wants for his product. Decades ago, he settled on a formula borrowed from Burgundy: For a ton of grapes, he would charge 100 times the price of a bottle made with them. In other words, if a bottle made from cabernet sauvignon grown at Dr. Crane retails for $150, the cost of buying the fruit equals $15,000 per ton.
He also requires winemakers to put his name on their labels — in effect, making them do his marketing for him. Some find it coercive, but Mr. Beckstoffer compares the arrangement to the “Intel Inside” logo found on Windows PCs.He also requires winemakers to put his name on their labels — in effect, making them do his marketing for him. Some find it coercive, but Mr. Beckstoffer compares the arrangement to the “Intel Inside” logo found on Windows PCs.
“He’s in a position where he can do that,” said Tor Kenward, a winemaker who makes cabernets with Beckstoffer grapes, retailing for $200 to $300. “Some winemakers are uncomfortable with the terms, but most think it’s worth the price.” At B Cellars, Mr. Strohl’s wine cave features a shrine-like Beckstoffer Heritage Room. “I’ll pay the price because I know I’ll get consistently excellent grapes, and I can make stellar wine,” he said.“He’s in a position where he can do that,” said Tor Kenward, a winemaker who makes cabernets with Beckstoffer grapes, retailing for $200 to $300. “Some winemakers are uncomfortable with the terms, but most think it’s worth the price.” At B Cellars, Mr. Strohl’s wine cave features a shrine-like Beckstoffer Heritage Room. “I’ll pay the price because I know I’ll get consistently excellent grapes, and I can make stellar wine,” he said.
The price of Napa bottles has risen year after year to ever-more incomprehensible heights — $1,000 for cult brands such as Screaming Eagle and Colgin — creating a seemingly invincible aura of prestige. As Mr. Beckstoffer likes to say: “You put ‘Napa Valley’ on a toothpaste, you can sell it as a luxury product.”The price of Napa bottles has risen year after year to ever-more incomprehensible heights — $1,000 for cult brands such as Screaming Eagle and Colgin — creating a seemingly invincible aura of prestige. As Mr. Beckstoffer likes to say: “You put ‘Napa Valley’ on a toothpaste, you can sell it as a luxury product.”
The question is whether the category will continue to thrive as its most lucrative demographic, the baby boomers, ages out of its prime consumption years and a new cohort takes their place — or doesn’t.The question is whether the category will continue to thrive as its most lucrative demographic, the baby boomers, ages out of its prime consumption years and a new cohort takes their place — or doesn’t.
Every year, Napa awaits the publication of Silicon Valley Bank’s “State of the U.S. Wine Industry” analysis. In an interview, Mr. McMillan said his increasingly vocal warnings of the millennial threat to the industry were finally being heard.Every year, Napa awaits the publication of Silicon Valley Bank’s “State of the U.S. Wine Industry” analysis. In an interview, Mr. McMillan said his increasingly vocal warnings of the millennial threat to the industry were finally being heard.
“Every piece of research shows they’re lagging,” he said. “It’s not that they don’t drink wine. There are just other choices. In the 1990s, there was incredible wage growth, but beer sucked. Now, guess what? Beer is good. And so are spirits.”“Every piece of research shows they’re lagging,” he said. “It’s not that they don’t drink wine. There are just other choices. In the 1990s, there was incredible wage growth, but beer sucked. Now, guess what? Beer is good. And so are spirits.”
Mr. McMillan said he thought that in the short term, the coronavirus pandemic might benefit the premium wine industry, with data showing locked-down consumers “willing to spend up,” perhaps as they try to recreate the restaurant experience at home. But the larger picture is not encouraging. When national crises come, so does a sense that we are all going to be more serious, more responsible, and stop buying expensive bottles of cabernet. After Sept. 11, 2001, terrorist attacks and the 2008 financial crisis, the luxury wine market took painful hits. In such times, people don’t stop drinking; they just buy less of the expensive stuff.Mr. McMillan said he thought that in the short term, the coronavirus pandemic might benefit the premium wine industry, with data showing locked-down consumers “willing to spend up,” perhaps as they try to recreate the restaurant experience at home. But the larger picture is not encouraging. When national crises come, so does a sense that we are all going to be more serious, more responsible, and stop buying expensive bottles of cabernet. After Sept. 11, 2001, terrorist attacks and the 2008 financial crisis, the luxury wine market took painful hits. In such times, people don’t stop drinking; they just buy less of the expensive stuff.
When I caught up with Mr. Beckstoffer again in March, by phone, he was sequestered at home. The pandemic had, if anything, helped him come to terms with his basket of concerns, putting them in perspective.When I caught up with Mr. Beckstoffer again in March, by phone, he was sequestered at home. The pandemic had, if anything, helped him come to terms with his basket of concerns, putting them in perspective.
I asked him to compare the crisis to earlier troubles in his career of half a century. In the 1970s, to buy Heublein’s land, he went into debt, then saw the price of grapes crash, causing him to default on loans and go into forfeiture. As he was beginning to recover, phylloxera hit and many wineries went under. He saw it as an opportunity. “When hard times hit, people sold,” he said. “That’s when we bought a lot of our vineyards.”I asked him to compare the crisis to earlier troubles in his career of half a century. In the 1970s, to buy Heublein’s land, he went into debt, then saw the price of grapes crash, causing him to default on loans and go into forfeiture. As he was beginning to recover, phylloxera hit and many wineries went under. He saw it as an opportunity. “When hard times hit, people sold,” he said. “That’s when we bought a lot of our vineyards.”
He seemed sanguine about the Covid-19 economic crash. “In this business, we tend to get seven or eight good years, then two or three bad ones,” he said. In the mind of a farmer, plagues come and go.He seemed sanguine about the Covid-19 economic crash. “In this business, we tend to get seven or eight good years, then two or three bad ones,” he said. In the mind of a farmer, plagues come and go.
The millenniums, however, still haunted him. “Millennials,” he corrected himself.The millenniums, however, still haunted him. “Millennials,” he corrected himself.
“We’ll figure it out,” he continued. “A well-managed business will always weather the storm. Nobody in Napa Valley is panicking. No land that’s really good is for sale that I’ve seen. If something comes up, I’ll probably buy it.”“We’ll figure it out,” he continued. “A well-managed business will always weather the storm. Nobody in Napa Valley is panicking. No land that’s really good is for sale that I’ve seen. If something comes up, I’ll probably buy it.”