Bottoms Up

If you haven’t heard yet, Chateau Montelena Winery announced on Nov. 5 that it terminated its sale agreement with French businessman Michel Reybier for the acquisition of the 127-year-old Napa Valley estate. Montelena sources said Reybier Investments was unable to meet its obligations under its contract with Barrett family, who will retain ownership and not offer the winery for sale after all.

The winery has grappled with problems in recent years. Bacterial funk and TCA taint in the cellar led to several less than desirable vintages. But Reybier was lulled by Montelena’s history and standing. Not only did the winery win the white portion of the Paris Tasting, but its Cabernets easily stand up to the best of the Valley. Reybier also owns Cos d’Estournel, the Bordeaux second growth in St.-Estephe, said he planned to move Montelena’s Cabernets into a more opulent, intense style, a la Shafer Hillside Select.

But, what now? In managing general partner Jim Barrett’s words: “The process did not result in the outcome we or Mr. Reybier desired. However, we find ourselves energized by the enthusiasm and vision expressed by all the parties who bid for ownership of Chateau Montelena. We now embark on a pursuit with which we are familiar and uniquely capable – to realize the full potential of this unique and special property.”

In other words, Barrett and managing director Greg Ralston will continue to lead; winemaker Cameron Parry and vineyard manager Dave Vella will continue to oversee production while Barrett’s son, Bo, master winemaker will continue on as a limited partner  and technical advisor.

My guess: some credit issues on Reybier’s part, perhaps a result of the devastated economy, unplugged the deal for everyone. Or perhaps the Barretts weren’t pleased with the direction he wanted to take the winery in. Who knows. But, if you like what Montelena does, particularly with their Cab, looks like nothing’s going to change for the time being. Wonder if Diageo’s looking…