You are, of course, correct, Wes, but the math is not equal…not because SC is not Napa, but because the land and facilities are bought and paid for. By now I would have to believe the KK estate is free and clear. Marty is able to charge less because he doesn’t have the same financial pressure (a big assumption on my part, I know).
New estate wineries in Napa are paying hundreds of thousands of dollars per acre, correct? At those prices, they are still only getting so much fruit, and therefore have to charge $x per bottle - $200 and up - to cover debt service, operating costs, etc. and have some amount of income left for the owners to take or reinvest. I believe that the majority of these new labels are charging what they are not because they are greedy and think they can get it, but mostly because they have to. Burgess was able to keep prices low because he bought decades ago and didn’t have a bank to answer to for a new vineyard and winemaking facilities.
The math is very different for new wineries in Napa. Ultimately, I think we will see more and more deals on close out sites as the market continues to soften for high end Napa wines.