How Small Beats Big – They Zig and Zag

Plus: New releases from Gramercy, Lower East & White Rose Estate

It would be easy to believe that corporate-owned winery groups have a better chance of surviving the crosswinds affecting and afflicting the wine industry these days. But let’s not assume that they have the best overall options. Yes the big guys can survive – by clearcutting the ‘dead wood’ assets that don’t meet the quarterly financial goals. Small, independently-owned wineries have better options and fewer stakeholders – C-level suits, shareholders, banks etc. – tugging at them to size down, fix the quarterly losses and sell off valuable properties at white sale prices.

Just last Christmas the Duckhorn Portfolio was acquired by Butterfly Equity, a Los Angeles-based private equity firm. Here are a couple of quotes from the press release announcing the purchase.

“We are thrilled to welcome The Duckhorn Portfolio and its talented team to the Butterfly family,” said Adam Waglay, Co-Founder and Co-CEO of Butterfly. “Duckhorn's remarkable portfolio of luxury wine brands has established a legacy of excellence, and we are excited to build on that success. Together, we look forward to expanding the Company’s global reach, both organically and through strategic acquisitions, and continuing to bring its celebrated wines to more consumers who value quality and craftsmanship.”

“This announcement is excellent news for the future of The Duckhorn Portfolio,” said Deirdre Mahlan, Duckhorn President and Chief Executive Officer. “Butterfly brings a proven track record of strengthening its portfolio companies while helping them advance their long-term strategic objectives. Through our partnership with Butterfly, we will have access to enhanced resources to build on our strong foundation and further scale our operations. We are excited to work with the Butterfly team to begin writing a notable new chapter in the story of The Duckhorn Portfolio.”

The “notable new chapter” began taking shape this past week when it was announced that the company would “re-focus” on core wines by dumping (my word) their Canvasback, Migration, Paraduxx and Postmark brands. Hello bottom line, goodbye jobs, tasting rooms and “celebrated wines”.

I’m not arguing that these disco’ed brands weren’t underperforming. Nor that deleting them doesn’t make perfect sense from a cost-cutting standpoint. But of particular interest to me were the separate fates of two of them – Kosta Brown and Canvasback. I reviewed three of Kosta Brown’s 2022 Oregon Pinots recently; they were solid middle-of-the road efforts, what sportscaster Colin Cowherd would call “ham-and-eggers” that elicited little enthusiasm from me. Even Kosta Brown’s Shea Vineyard selection, as sure-fire a Willamette Valley Pinot as you can find whatever the vintage, got this lukewarm note:

Kosta Browne 2022 Shea Vineyard Pinot Noir – Grapes from the Shea vineyard, which provides fruit to an honor roll of great Oregon vintners, is featured here. While Oregon wineries are cutting back on new French oak exposure, here it’s up to 40% and the toasty highlights tend to overtake the rich, ripe black fruits that exemplify Shea bottlings. It’s a style choice, but one that attenuates most of the fruit and detail. 14.1%; $105 (Willamette Valley) 90/100

Canvasback’s wines, particularly those made under the supervision of Brian Rudin (now at Echolands), have been among the finest ‘corporate’ wines made in Washington. In an odd twist of fate, wines from Rudin’s last vintage (started but not finished while he was at Canvasback) showed up at my door the day after the ax fell on the winery. I will have those tasting notes in a future post. But based on past experience they are unlikely to disappoint. My most recent reviews of Canvasback’s 2021 vintage included a Les Collines Vineyard Cabernet Sauvignon (95 points), a Red Mountain Merlot and Red Mountain Cabernet Sauvignon (both 94 points), a 93 point Grand Passage Cabernet Sauvignon and several other wines in the 92-93 point range. In other words, quality across the board.

Guess which of these two wineries escaped elimination?

I don’t believe this is some sort of exceptional circumstance. Rather it puts the spotlight on how big wineries are tackling these tough times. How about the little guys?

As it happens I’m in the middle of a week of visiting small, family-owned wineries in the Willamette Valley, and I’ve had the opportunity to ask a number of winemaker/owners how they are managing their businesses. No one is doing the Snoopy dance over current market conditions. Nor is there a pervasive sense of doom and gloom.

At EIEIO Jay MacDonald says “If you’re small you don’t have investors, a Board of Directors – you own it yourself. You can zig and zag, make changes quickly, on the spot.” He’s cut production and offers a series of fascinating ‘Direct From Barrel’ wines that showcase some notably unique qualities.

Nick Kristof and Sheryl WuDunn have just released their second vintage (soon to be reviewed) of estate-grown Chardonnay and Pinot Noir, but also have an orchard with a dozen varieties of cider apples. They are expanding those offerings with canned and low abv ciders, as well as a delicious ‘Noir’ made by co-fermenting Pinot Noir skins to the apples.

A rainy afternoon enhanced rather than dampened the splendid vistas at Elk Cove. Along with an expansive and welcoming tasting room the winery, celebrating its 50th vintage, offers a full range of estate wines along with non-estate wines under the sister Pike Road label. Visitors can find everything from old vine Windhill Vineyard Pinot Noir to estate grown Riesling and some of the Valley’s finest Pinot Gris.

No one works harder or does more to protect and preserve the land than Clare Carver and Brian Marcy at Big Table Farm. While Brian handles the winemaking Clare takes care of the chickens, pigs, sheep, goats and horses that work the property, and finds time to turn out a dazzling array of original art that can be purchased at the Carlton tasting room/gallery. Many more examples of creative marketing, zigging and zagging, and simply putting more shoulders to the wheel will be discussed in my full report next week.

More good news: a couple of weeks ago VinePair announced its 2025 top 10 wine destinations in the world. Numero Uno was the Willamette Valley, just ahead of number two Champagne. That’s pretty good company. The only other region in the U.S. on the list was the fourth place San Luis Obispo Coast.

Since wine touring here in the Valley is about to jump into full tilt boogie (Memorial Day weekend is traditionally when things get hopping) I have been asking winemakers for recommendations for those touring the Willamette Valley. I asked them where would you send your own friends and family? Their suggestions as well as my own will be featured in next week’s post.

Gramercy Cellars / Lower East

Founded by master somm Greg Harrington, the pursuit of ageworthy, at times austere wines has been a focus throughout the winery's history, and the current lineup is every bit as good as I remember from years ago.

Gramercy Cellars 2024 Picpoul – Hard to imagine a more refreshing spring/summer white wine. This classic ‘lip stinger’ is loaded with lime, mineral and a dash of sea salt. The supporting acids bring a wash of lemon juice. Not sour, just tart and palate cleansing start to finish. 665 cases; 13%; $25 (Walla Walla Valley) 92/100

Gramercy Cellars 2024 Olsen Vineyard Rosé – Modeled on southern French rosés, this is 48%Cinsault, 24% Grenache and 28% Syrah, co-fermented in stainless steel. It has the perfect rose gold color for a French style, with rich and generous flavors that pull together citrus, rhubarb, apple and a dash of white pepper. The concept and execution are spot on, and a more generous and well-balanced rosé would be hard to find. 524 cases; 13%; $28 (Columbia Valley) 93/100

Lower East 2021 Cabernet Sauvignon – Almost three quarters of this wine is Phinny Hill Cabernet. Another 20% is estate fruit, and a bit of Merlot finishes the blend. Another exceptional value from Lower East, it brings top tier fruit and winemaking not often found at these prices. From many wineries this would be their best Cabernet, at a significantly higher tab. Black coffee, charred wood and cayenne pepper complement the black fruits. 1456 cases; 14%; $28 (Columbia Valley) 93/100

Lower East 2020 The Bowery – Syrah, Carignan and Grenache are in the mix, mostly the former. There’s a satiny mouthfeel, with the dominant Syrah showing flavors of black tea, black olive and salami. The palate broadens out with a burst of juicy marionberry and acai. More than half the ferment included whole clusters. It’s a lot of flavor for the price. 536 cases; 13.5%; $25 (Columbia Valley) 92/100

Gramercy Cellars 2021 Gramercy Estates Red – Cabernet Sauvignon dominates the blend, with 17% Cab Franc and 1% Petit Verdot finishing it off. One third saw new French oak. This is a firm, classic, stylish wine, with a spine of steel. Compact cassis and blackberry fruit holds the center, amplified through an extended finish by the oak aging, lightly gritty tannins, and accents of coffee grounds and chocolate nibs. Built to age, yet fine for drinking now, this is a beautiful example of Walla Walla Cabernet. 234 cases; 14%; $72 (Walla Walla Valley) 95/100

Gramercy Cellars 2021 L’Idiot du Village Mourvèdre – Kudos to the Olsen vineyard for such fine fruit, and to Gramercy for making this stellar example of what is usually consigned to the back third of a GSM blend. With tart red currant, wild strawberry, Italian plum, light sage and more, this concrete-fermented wine stands as a textbook example of the grape as a varietal wine. A touch of pepper highlights the trailing finish. 395 cases; 14%; $48 (Columbia Valley) 93/100

Gramercy Cellars 2021 Reserve Cabernet Sauvignon – From the Bacchus and Phinny Hill vineyards, this compelling Cabernet is smooth and silky. The winery notes the “structured complexity” of the Bacchus fruit and the “refined intensity” of the Phinny Hill grapes, and I can’t do better. A small percentage of Petit Verdot from the Octave estate vineyard puts a touch of spice on the finish. Aged 21 months in 38% new barrels, this deftly mixes plum, blackberry and cassis fruit with lightly layered fresh Italian herbs. A wine to enjoy now, but you’ll want to tuck away a few bottles for tasting in years to come. 259 cases; 14.5%; $65 (Columbia Valley) 95/100

Gramercy Cellars 2021 Red Willow Vineyard Lagniappe Syrah – Red Willow is the birthplace of Washington Syrah, and some of those heritage vines are in the blend here. The vineyard always shows a strong savory side, with balance and elegance part of its charm. Red fruits with clean earth as a base, just 8% new French oak puncheons adding a bare hint of toasted walnuts. A bit of an homage to the late David Lake, and thank you Gramercy for that. 487 cases; 14.5%; $65 (Columbia Valley) 91/100

Gramercy Cellars 2021 Forgotten Hills Vineyard Syrah – First among the estate vineyards, planted in 1997, organically farmed, this offers a weave of earth, herb and lightly vegetal flavors. There was some bottle variation between the two I tried; the first a bit too lean. The second more in sync, with light currant, dried herbs, and a drying finish. 180 cases; 13%; $65 (Walla Walla Valley) 91/100

Gramercy Cellars 2021 Reserve John Lewis Syrah – The top bottle from a producer that specializes in a lighter, more savory style of Syrah. This was a difficult vintage with a big burst of triple digit heat in the summer. The wine at first seems tannic and tied down, the dark fruits a bit overshadowed by the tannins. On the second day intense flavors of concentrated blueberries appear, with sappy acids and shadowing tannins. Clearly this wine must be decanted a good two hours ahead of drinking any time soon. 176 cases; 13%; $85 (Walla Walla Valley) 93/100

White Rose Estate

White Rose 2023 Convivialists Chardonnay – This is a mostly whole cluster ferment of clones from four different AVAs, all in the Willamette Valley (though the back label carries the generic ‘American’ designation. It’s got great mouthfeel and texture, with abiding minerality. Citrus rind flavors run seamlessly into light orchard fruits, with balanced acids and a light suggestion of new oak. 310 cases; 13.5%; $85 (American) 93/100

White Rose 2023 Convivialists Pinot Noir – Ten different Willamette Valley vineyards contribute to this blended Pinot. It seems like a lot of work for barely 1000 cases, but I’m not the accountant here! The wine is young, tight, spicy and focused, with a core of cranberry and red currant fruit. The time in 20% new oak barrels gives a light hint of milk chocolate, with a dash of nori. 1012 cases; 13.5%; $80 (American) 91/100

White Rose 2023 Collectors Contemporary Pinot Noir – The color of the wine in the glass is classic Pinot Noir, suggesting refinement, elegance and restrained power. The palate delivers – with a tapestry of rosewater, blood orange, wild raspberries and Chukar cherries. Lovely balance throughout, with a soft fade through the finish. 200 cases; 13.9%; $120 (American) 93/100

White Rose 2022 Object of Beauty Pinot Noir – All Pommard clone, this blends fruit from the estate vineyard with small amounts from the Guillen and Meredith Mitchell vineyards. The throughline on the whole 2022 set of White Rose Pinots is compact elegance. The wines are balanced and expressive, with a light touch of new oak. Here the low abv brings more acid, rhubarb and white strawberry fruit, with a lick of minty chocolate as it fades. 74 cases; 11.5%; $215 (Willamette Valley) 90/100

White Rose 2022 The Neo-Classical Objective Pinot Noir – This is two thirds Pommard, fruit forward and expressive. The strawberry fruit is backed with lush wet rock minerality. A youthful, fruity and refreshing wine, it should be enjoyed over the next five years. 215 cases; 13%; $110 (Willamette Valley) 91/100

White Rose 2022 Personification of Power Pinot Noir – Principally Pommard from older vines, it’s a dark plum color with compact flavors of marionberry jam. It’s balanced and firm, with proportionate supporting tannins. Once in the mouth it seems to expand and deepen, with a frame of dried herbs around the core berry fruit. 64 cases; 14.1%; $215 (Willamette Valley) 92/100

White Rose 2022 Confluence of Nature Pinot Noir – Here is a 100% estate wine, all Pommard and whole cluster fermented. One third of the barrels were new. It’s balanced and refined, with appealing elegance. The fruit flavors dance lightly across the palate, a mix of currant, red berry, blood orange and Bing cherry. Well ripened tannins kick in through a medium long finish. I suspect this could be a ‘sneaker’ wine in the cellar; one that might develop beautifully over the next 15 years. 62 cases; 13%; $215 (Willamette Valley) 93/100