The Costco Connection - December 2014

DECEMBER 2014 ;e Costco Connection 79

wine connection

By Annette Alvarez-Peters

DECEMBER USHERS IN winter and festive holidays, and is the month for giving. Wine can be a sensational gift to grace the table of a dinner party, or a warm token of appreciation for a friend or colleague. In any case, cabernet sauvignon is perfect for the occasion.

Cabernet sauvignon is widely considered the most classic red grape varietal and is successfully grown throughout the wine-pro-ducing world. The small, thick-skinned cabernet sauvignon berries grow in loose clusters and produce varied flavors, from cassis, black cherry and jammy blackberry to tobacco, slightly herbaceous and earthy notes.

This grape variety is rooted in vineyards from the Old World—e.g., Bordeaux, Tuscany—to the New World—e.g., the United States (including California and Washington), Chile, Argentina. Although cab is relatively easy to grow in a wide range of soils, Mother Nature can play a role in coaxing out very different results.

Fortunately, a vast range of cabernet
sauvignon is available, from everyday wines
for casual drinkers to some of the most col-
lectible and expensive wines produced any-
where. I am often asked if a $200 bottle of
Bordeaux is really better than a $75 bottle
from Napa Valley or a $20 bottle from
Chile, and if price is a measure of quality.
Bordeaux is really better than a $75 bottle
These are great questions: Why does price
vary, and what makes one wine better than
the next? The answers lie in the economic
fundamentals of wine production and, of
course, your individual preferences.

Land, labor and more

A number of key factors determine the quality and price of a wine. Among the essentials are land cost, viticulture and winemaking techniques.

The price of land suitable for growing cabernet sauvignon grapes ranges from $750,000 per acre for premium land in the Medoc region of Bordeaux to $250,000 for a premium acre in Napa Valley to $15,000 in Chile. Land costs can be sky-high in areas with an established history of producing high-quality fruit, and can also be pricey in newer areas with strong potential.

On top of that, planting a new vineyard can cost $12,000 to $70,000 per acre. The earliest that cabernet sauvignon grapes are suitable for winemaking is the third harvest, but many quality producers wait until the fifth harvest.

Costs are also influenced by farming
techniques, which can vary greatly depend-
ing on the amount of technology and labor
used in the winemaking process. Top vine-
yards require a great deal of hands-on atten-
tion, including hand-sorting grapes in the
vineyards and harvesting on steep hillside
slopes. In large-production vineyards, mech-
anized farming, including machine harvest-
ing, is more common.

A wide range of technology (and costs) exists for winemaking as well. Some of the most expensive cabernet sauvignons are carefully handled through grape selection, crushing, fermentation and aging in very costly new French oak barrels. The more basic wines are made on a larger scale with more modern technology and can be aged in large wood casks or stainless steel tanks, while using oak alternatives. Most cabernet sauvignons are aged 12 to 24 months before bottling.

The economics of wine

Just when you thought you had pricing variables down, throw in currency exchange rates; sales and marketing costs; and wholesale, distribution and retail profit margins, along with supply and demand. As daunting as this all sounds, the good news is you can find a tremendous number of quality cabernet sauvignons at every price point.

Most important is your own individual taste and what you are willing to pay for a bottle of wine. Since everyone has a different preference, your palate will determine if a wine priced at $200 is better than one at $20. Whether you are selecting a cabernet sauvignon that is fruity and easy to drink or one that is silky and elegant, many options from the New World and Old World are available for you to choose from.