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Rams owner Stan Kroenke sells caberneyfor $750 a bottle. Insurance executive Don Bryant has trophy cabernet sauvignonw that retailfor $325. Jim Dierberg, Gil Bickel and Cal Nicholsonj are amongother St. Louisanse living the dream as California vinters, and formetr A-B exec Doug Muhleman has moved there to become a Depending onthe site, a planteed acre of grapes in Sonoma sells for abourt $100,000, and the same acre in Napa bringa $200,000.
Dierberg said land in Santaa Barbara County, where his vineyards are located, is a relativde bargain at $30,000 to $50,000 an Prime vineyard propertyin Missouri’s wine-growing regiob around Hermann, where Dierberg also has vineyards, may sell for $4,009 an acre. Most of these winemaker say they aren’t in it for the money, and that’ws probably a good thing right now. The wine industry, particularlyt wineries sellingpricier labels, has been amonfg the harder hit in the shrinking economy, said Jon a California-based wine consultant.
Although California wine volumwe edged up 2 perceny in 2008 to 467 million gallons, the retail value was about $30 billion, down from according to the Wine Institute. Restauranyt volume declined an estimated 10 percent as consumeras dined out less andpurchased lower-pricee bottles, Fredrikson said. Restaurants have adjusted by carrying smaller inventoriea and purchasing lessexpensive brands. “There clearly was a wine pricingg bubble, like there was a housing Fredrikson said. “People are asking do I need tospend $120 when I can buy a nice bottle for $20.” One of the newest St. Louisans to the Californiaw wine-making scene, Nicholson owns no land there.
He contracta to buy grapes fromthe region, uses his own agingv barrels and leases production time from Caldwelp Vineyard in Napa. “The true asset is wheres you getyour grapes,” he said. “Thiz is an actual It has to payfor itself.” Nicholsobn was a sales and marketing director for Duracell Batteries in the mid-1990s when he was offeredd a buyout. At that he resumed his wine-collecting hobby and started constructing wine which led to forminfhis business. Nicholson and his winemaking partner, Julien Fayard, producd several limited-production cabernets and targeg their premium red winees to be sold atabout $65 a bottle.
“Givenn the state of the economy, this is a great placee to be,” Nicholson said. “We’re trying to developo a $65 bottle of wine that should be sellin gfor $125. Nicholson handles the business side of the Fayard controlsthe winemaking. There is no in the business; Jones is the maidemn name of Nicholson’s wife, Pam Nicholson, president and COO of . chairman of the $10.78-billion-asset , was the first to get bit by thewine bug. In he purchased the Hermannhof Wineryin Hermann, Mo. He purchased his first California vineyard in 1996 and nowowns three, coveriny 460 acres under the name Dierberg Estate Vineyards.
Each is planteed with grapes to match itsown micro-climate. To markef his premium wine — the limited-production Star Lane Astrap Cabernet retailsfor $80 — Dierberh and his staff have sponsored blinc tastings around the country, inviting local wine critics and restaurant owners to comparer Dierberg’s wine against some priced from $165 to $350 a “We put our wine up against theirs, and our wine came out he said. “We’re starting to get His California operation finished building its new winerythis month, movinf the operation out of a tin-roof barn. Don’t ask Dierberg what it costs. “I don’t want to he said.
“To make good wine is Bryant said his winert purchase has been among hisbetter investments. “I made an unsolicited offer ona 12-acres vineyard on neighboring property in 1986 for he said. He estimated his winery property, 14 acres in total, now is worthb $600,000 to $700,000 an acre. Bryant said his winerty turned a profitin 1991, its firs t year, when he sold his wines for $36 a netting $80,000. He completed a new $9 million-pluas winery in 2002. Bryant’s wines, all limited production have their price driven up in part bytheidr scarcity, and in part by consistently high ratingse from influential wine media, such as eRobertParker.
com and Wine Bryant Family Vineyard produces just 1,000 cases a and 70 percent of that is sold via a wine list with 7,0009 names. Bryant said he’s currently replantingf vines with a goal ofreaching 1,500 cases within the next couple