Showket Rumor and other wine biz happenings?

WINE TALK
1

I recently heard that Showket was closing its doors. Can anyone confirm this? I was very surprised to hear this from someone I know but haven’t been able to confirm anything?

Thanks

2

Tony, I hope not.

As being only in the rumor stage, it’s scary to even think of the ramifications if it were true and the reasoning behind it if they are economy related.

3

Having a discussion with a friend in the wine business (production side), friend said Q4 this year is a make or break quarter for a lot of wineries. These accountants also said they estimate 15-20% of wineries in Napa/Sonoma going bye-bye if things don’t turn around in Q4.

Also, same person said vineyard owners/managers are calling and offering said friend fruit at picking costs - the same fruit was being sold for $4500-5000 per ton last year.

4

Q4 is a make-it-or-break-it quarter for a lot of businesses nationwide - no question. There will be no more of an important ‘black Friday’ than the one coming up this year, as it is symbolic of the entire fiscal year in spending, and the summer was SO very bad, there’s a lot to make up for.

5

That’s like 1 million wineries!
In all seriousness, it’s a sad day indeed if this were to happen.

6

I think that no matter what happens in the economy (short of a miracle), it is unlikely to turn around the 20-25% of the wineries that are overleveraged, and will be sitting on high priced inventory. This is not very different from many, many, other industries. Not fun.

7

It would be very sad to see a lot of wineries go, if indeed the bleak forecast pans out.

That being said, everyone has been wondering for the last couple of years, how many $100 cabs, $50+ Pinots and Chards can the market sustain…answer may be a lot less than before.

8

Wasn’t Russell Bevan the winemaker? He used to post on the other board, if he sees this maybe he can give a answer

9

Tony,

FWIW I also heard this.

Carole

10

Carole - interesting. Hope all is well.

Steve G - I have called Russell for confirmation but haven’t heard anything.

Just wondering if anyone else had any knowledge.

11

I just got a note from my rep, absolutely not true according to her.

12

Carrie - hopefully we’ll get a straight story then…like I said someone I trust in the wine biz heard this which was kind of stunning if true

13

We at Showket Vineyards have heard these rumors, too. The fact is, that as many times over the past years, the owners have received lucrative offers to sell the property and are seriously considering such an offer and finally really retiring! Also some fruit has been sold to scale down production.

The Showket brand will continue and we are very excited about the upcoming releases. The 2007 Sangiovese and our new 2007 Proprietary Red, which were entirely made by our new winemaking team Russell Bevan and Thomas Brocker have been released in addition to the 2006 Cabernet Sauvignon and 2006 Asante sana.

Marion Groetschel
Showket Vineyards

14

Thanks, Marion - good to have you on board.

I also appreciate the diffusing and clarification of the ‘rumors’, which are exactly that. Perhaps we should keep away from posting such rumors in the future until we have absolute confirmation…then they are no longer rumors, too.

15

+1

16

Rumor is that my 2009 Cab received 98 points from Parker. Although rumor is that Jeff Nowak only gave it 75 because he did not like the alcohol level. [wink.gif]

17

I prefer to read between the lines on this one…

18

What in the hell you think the Internet is for? Spreading the truth? [rofl.gif]

19

So…if the general rumor is that 15-20% (some as high as 25%) of wineries are going to be closing their doors…what the hell is going to happen to the excessive amount of vineyard land that is out there (or will be out there)?

20

Fred Franzia comes out with Ten Buck Chuck?