BizJournals Portfolio

Wine and the City

Bottles Around the Bay Bottles Around the Bay

The Bay Area is bubbling over with urban wineries. We map out the scene. See All Video & Multimedia

Urban Wineries Across America

Nine winemakers in surprising city locations. Read More
PREV 2 of 2

A Donkey and Goat owners Brandt and her husband, Jared, are typical of the newer winemakers who populate the Bay Area’s light-industrial areas. The thirtysomethings started their winery in 2004 after the dotcom bust in San Francisco ended their lucrative careers at J.P. Morgan (before it merged with Chase) and Eastman Kodak. The wine neophytes picked up and moved to near Lyon, France, to work for a year with respected winemaker and negotiant Éric Texier, whose wines are made from grapes he sources from around France’s Rhône Valley. The Brandts returned to San Francisco and helped start Crushpad, a custom-winemaking facility, before going out on their own.

“There’s been a democratization of the winemaking field in the last five to 10 years—and a breaking down of the barriers,” Tracey says. “People have come to realize that you don’t necessarily have to have $10 million and a Napa château to start making wine.”

Most of these garagistes, as small-scale winemakers are often referred to in the trade, operate on a shoestring, many holding down day jobs. They sell their wines through word of mouth, a strategy made much easier by the internet. But it’s a business that can be difficult to scale: Few make more than 2,500 cases per year, a drop in the barrel compared with the half-million or more cases made by the biggest wineries. Distribution is tough, revenues rarely top $1 million, and profits often don’t arrive for many years, if ever. (Urban upstarts often cover the lean years with so-called custom-crush deals with winemakers who are just a little younger and want to make wine while setting up their own facilities.) And to source good grapes, they must develop relationships with growers, though that has been made easier in the last few years by the glut of fruit that has flooded the market as a result of overplanting in parts of California.

Urban winemakers are also being helped by a cultural shift: The wine-drinking demographic is growing younger. Wine drinkers aged 21 to 28 are driving much of the growth in the consumption of the beverage, which has eclipsed beer as America’s favorite alcoholic drink, according to a 2006 report from the Wine Market Council. “The younger generation has been reading from Robert Parker about garagistes making wine out of their garages in France all these years, and it sounds like fun to them,” says Mike Dashe, owner of Dashe Cellars, which, at 11 years old, is a relative old-timer on the scene. Dashe Cellars is located near Oakland’s formerly all-industrial Jack London Square neighborhood.

The benefits for urban winemakers is that they get to make wine while retaining their citybound sensibilities. “I like the fact that I can ride my bike to the winery in five minutes and stop on the way to get a double espresso and a sandwich at Café Fanny [a little sister to Chez Panisse], and then go to Monterey Market on the way home and choose from a number of good shops like Kermit Lynch for a bottle of wine,” says urban wine pioneer Steve Edmunds, whose well-respected Edmunds St. John winery opened in 1985 and is now located down the street from A Donkey and Goat. “Although I love the stillness and solitude out in the country, I get a little stir-crazy after a while.”


Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

Connect With Portfolio.com

Come on, like us—you know you want to.

Follow us and if you're an innovative entrepreneur, we'll return the favor.

Today's top stories, conversation starters, and the back nine business bites.

spotlight on

Slideshows

500 Startups Hits New York

Dave McClure's brainchild makes its way to New York and introduces East Coast money folks to some intriguing new companies. View Slideshow