Sunday, September 27, 2009

The Resurgence of Keynesian Economics and Interventionism

Guided by the theories of famous British economist John Maynard Keynes and American monetarist Milton Friedman, politicians and monetary leaders throughout the developed world have embraced interventionist policies in an attempt to engineer “soft landings” to economic recessions. Proponents assert that decisive monetary and fiscal policy response following the 1987 stock market crash, the 1990-91 recession, LTCM and the Russian debt crisis of 1998, and the implosion of the technology bubble in 2000 averted otherwise disastrous economic outcomes. Deutsche Bank strategist Jim Reid, however, likened such policy response to the evolution of strategies for fighting forest fires in his September 21, 2009 Early Morning Reid publication. Experts historically prescribed prompt and overwhelming action to minimize the burn area until it was learned that the accumulation of dead wood and foliage throughout the forest creates a tinderbox poised to explode. The misguided attempts to mitigate the damage caused by forest fires, it seems, ultimately lead to destructive blazes that were immune to the tactics and resources of highly trained fire fighters.

The policy tools of interventionists, such as government bailouts, artificially suppressed interest rates, and fiscal largess, lead to a host of undesirable consequences. Fundamental among them are distortions of risk premiums, reduced loss expectations, and the moral hazard inherent in the public assumption of private obligations. Never before has such a broad array of fiscal and monetary policy actions been implemented than the current economic crisis, resulting in serious consequences for future economic stability.

Bailouts
Justified by a desire to maintain employment during recessions, politicians embarked on bailout campaigns for “strategically important” industries. Whether through direct rescues of failed institutions (e.g. automakers, banks, etc) or surreptitious support through subsidies, tax breaks, and protectionism, governmental intervention in the real economy encourages excessive risk taking and prolongs the existence of “dead wood” companies. Failures of private institutions, often a result of inefficient operations or poor risk management, may be temporarily averted, but the societal costs of increased public debt and misallocation of scare capital far outweigh the immediate benefits of sustained employment and economic activity. Perhaps the most costly consequence of governmental bailouts, however, is the perpetuation of beliefs that certain companies and industries are exempt from the harsh realities of competition and creative destruction that define free market economies.

Fiscal Stimulus
A core principal of Keynesian economics is that demand, rather than supply, determines the equilibrium levels of output. The theory suggests that governments must intervene to support economic activity in the absence of consumer or investment demand. While Keynes generally envisioned public works spending to stimulate the economy, governments around the world have embraced spending packages that feature little direct investments in infrastructure but instead are comprised of welfare payments, subsidies for troubled industries, and tax breaks designed to encourage consumption. These programs often fail to reduce unemployment or generate measurable economic benefits. Instead, they exacerbate federal budget deficits, threatening future economic growth by increasing public indebtedness. Fiscal largess may inspire a temporary perception that the government is addressing the economic crisis, but the consequences of ineffective policies and skyrocketing public indebtedness are often misunderstood and drastically underestimated.

Monetary Policy
Monetarists add fuel to the fire by injecting massive sums of cash into the market in order to suppress interest rates and spur economic activity. By lowering the returns on holding cash, policy makers hope to induce consumption and encourage capital investment. Recent monetary easing programs have seen rates approach zero percent, but the impact on economic activity has been debatable. The extensive liquidity injections in the beginning of the decade led to massive asset speculation, both in housing and in mortgage backed securities. In an attempt to achieve higher returns, investors ignored default risk as they ploughed capital into mortgage and credit markets, engendering an easy credit environment that created the housing bubble. Today, monetary policy is even more accommodative resulting in similar signs of excessive risk-taking in credit and equity markets even without a sustained improvement in economic activity.

When The Well Runs Dry
The confluence of Keynesian and monetary interventionism, along with a host of new government programs to aid the housing markets and financial system, have seriously jeopardized future economic stability. Recent research suggests that individuals’ lifetime consumption smoothing preferences, already impaired by a decline in housing and investment wealth, have led to even greater declines in spending as they predict higher future taxes, interest rates, and expected inflation. No company can adequately plan for new investment because the regulatory and consumer demand landscape is constantly changing. For example, the U.S. “cash for clunkers” program rapidly depleted automakers’ inventories, but current results suggest that sales have fallen off a cliff as consumers merely pulled forward future purchases to avail themselves of government largess.

Many of the government programs and interventionist efforts have been designed to provide life support to inefficient companies and socialize private obligations to prevent failure of “systemically important” firms. The government has assumed or guaranteed trillions in private debt in an effort to prop up housing markets, preserve an automobile industry that failed to adapt, and rescue banks from the consequences of their own greed. With unemployment still hovering at or above 10% and economic stability that is tentative at best, the effectiveness of almost $800 billion in stimulus, zero percent interest rates, and a host of bailouts is highly questionable. Policy makers may have secured a temporary reprieve from what would certainly have been more corporate defaults and job losses, but they simply delayed realization of losses on poor investment decisions by inducing liquidity driven speculation in financial securities. The dead wood of underwater mortgages, inefficient companies, and distressed securities remains pervasive leaving the risk of an unassailable fire greater than ever before.

Friday, September 18, 2009

Oregon Wineries and Vineyards: Northern Willamette Valley

As the birthplace of viticulture and winemaking in Oregon, the Willamette Valley gained worldwide attention for its Pinot Noir when David Lett of Eyrie Vineyards placed third in a 1979 international wine competition in Paris before following up with a second place finish a year later. Far and away the dominant red wine varietal of the region, Pinot Noir plantings expanded from Lett’s original 20 acres in the Dundee Hills to over 12,000 acres of wine grapes across the Willamette Valley. The primary varietals are Pinot Noir, Pinot Gris, Chardonnay, and Riesling.

The winemaking industry of the Northern Willamette Valley is revolves around McMinnville, Oregon, with the major viticultural regions of Yamhill, the Eola-Amity Hills, and the Dundee Hills in close proximity. Consisting predominantly of smaller vineyards, the Oregon winemaking industry is highly fragmented but also cooperative in nature. The vastly different licensing and skills, not to mention the substantial capital investment required to be a winery, compels smaller growers to collaborate with established wineries to produce their wines. In exchange for 60-70% of the harvest, the winemaker will oversee the entire enological process and will use the remainder of the harvest to produce wines under the vineyard’s label. The winemakers are able to create wines for sale under their own label by artistically blending the output of various growers, often leading to impressive outcomes.

The Dundee Hills of the Northern Willamette Valley


Notable Wineries

Panther Creek Cellars
Located in McMinneville’s historic former power station, Panther Creek Cellars epitomizes the high quality Oregon winery that grows no grapes of its own. More than twenty years of experience producing predominantly Pinot Noir has led to a refined approach and some impressive wines. Most impressive was the 2006 20th Anniversary Pinot Noir, a pleasant wine with slight hints of earth on the nose and well balanced fruit on the palate. For a little more spice, the 2007 Winemaker’s Cuvee Pinot Noir is a smooth wine with the telltale earthy nose of the Oregon Pinot Noir but a little more spice on the palate. The 2007 Verde Vineyards Pinot Noir, however, was the lone disappointment of the Panther Creek Pinots with a nose and palate of cocktail sauce. Top to bottom, Panther Creek Cellars has one of the most impressive portfolios of Pinot Noir in the Northern Willamette Valley.

Bella Vida Vineyard
In contrast to Panther Creek, Bella Vida Vineyard is a small grower in the Dundee Hills that relies entirely on outside winemakers to craft their wines. They have selected a quality trio of winemakers, but unfortunately the private label production of Pinot Noir totals less than 500 cases after the winemakers take their share of the harvest. The 2007 Tardy, named after winemaker Jacques Tardy, is a bold earthy Pinot that was the best of the trio. Albeit slightly milder in flavor and possessing a good balance between the fruit and minerality of the wine, the 2007 J. Christopher Pinot Noir was also very appealing. The most expensive wine of the trio, the 2007 O’Donnell Pinot Noir, was the least impressive of Bella Vida’s offerings but good nonetheless. This small vineyard creates very good wines, each with the unique touch of their respective winemaker, leading Bella Vida to consistently sell out of their limited production before Thanksgiving.

Lenne Estate
One of the best small vineyards in the Yamhill area, Lenne Estate has created some wonderful Pinot Noir wines with the winemaking assistance of Owen Roe. The 2007 LeNez Pinot Noir blends wines from a variety of barrels resulting in a light, slightly earthy wine that is well balanced. Alternatively, the 2007 Lenne Estate Pinot Noir is a bolder wine with the flavors slightly overwhelmed by its youth. An interesting selection for the Willamette Valley, the 2007 Owen Roe Rosa Mystica Cabernet Franc was well crafted and had an aromatic nose. Lenne Estate stands out as an promising small vineyard.

The Lenne Estate's Tasting Room Graces the Hilltop


Other Wineries

St. Innocent Winery
St. Innocent Winery, with vineyards in the Eola-Amity Hills near Salem, Oregon, was founded in 1988 by Mark Vlossak and obtains grapes from eight different growers in addition to their own vineyard. Featuring an array of Pinot Noir and the obligatory Pinot Gris and Pinot Blanc for white wine enthusiasts, St. Innocent generally offers average wines with little distinguishing characteristics. Their 2007 Winemaker’s Cuvee and Mamtazi Vineyard Pinot Noir both have a strong unappealing cocktail sauce bouquet and flavor. In contrast, the 2007 Shea Vineyard Pinot Noir was by far the standout with a pleasant nose and good mellow balance of spice and berries on the palate.

Lange Estate Winery and Vineyards
A larger winery from the Dundee Hills, Lange Estate produces 14,000 cases of Pinot Noir, Chardonnay, and Pinot Gris annually. Their 2007 Pinot Noir Reserve, a blend from multiple vineyards, was smoky and earthy with hints of fruit on the finish. Outside of their lineup of six different Pinot Noirs, the 2007 Freedom Hill Vineyard Chardonnay was sweet and not as buttery as its Californian peers. In general, Lange Winery produces decent wines but very few standouts.

Erath Winery
As one of the oldest wineries in Oregon, Erath Winery has developed a reputation for Pinot Noir, but it also produces many of the common white wine varietals such as Pinot Gris, Pinot Blanc, and Gewurztraminer. By 1987 the Dundee Hills winery had grown to 35,000 cases and national distribution before being sold to Ste. Michelle Wine Estates in 2006. A visit to the tasting room reflects its corporate culture as it is a popular stop on the tour bus circuit. The 2006 Pinot Noir from the Leland Vineyard was the best of the lot, but the general impression was that, while there was nothing ostensibly wrong with the Erath wines, there was nothing remotely exceptional about any.

WillaKenzie Estate Winery
Next on the list of popular tour bus stops would be WillaKenzie Winery, complete with a large tasting room on a 420 acre estate in Yamhill, Oregon. Despite being located very close to Lenne Estate, the wines of WillaKenzie were some of the least impressive of this small sample of Northern Willamette Valley wineries. All were average at best, with the 2006 Pinot Noir Terres Basses standing out as one of the better efforts. In contrast, the 2007 Pinot Noir Thibaud’s Cuvee was overpowered by earth and cedar with a strong biting alcohol finish that is rare among Pinots.

Maresh Red Hills Vineyard
A small and unassuming vineyard with the tasting room located in a red barn, Maresh Vineyard has a friendly atmosphere and an affordable array of good wines. Jim Maresh was one of the early pioneers of viticulture in Oregon, planting their 140 acres in 1970 with Pinot Noir, Pinot Gris, Riesling, and Sauvignon Blanc. Maresh retains experienced winemakers to produce their wines in similar strategy as their neighbor Bella Vida Vineyards, and retails their small lot wines exclusively from their tasting room.

Redhawk Vineyard and Winery
Just north of Salem, Oregon in the Eola-Amity Hills is Redhawk Winery, a smaller producer that grows primarily Pinot Noir, Pinot Gris, and Chardonnay in the surrounding vineyard. While Redhawk doesn’t have the strongest portfolio of wines, there are a few worthy of note. Famous for its value priced, and commensurate quality, “Grateful Red” Pinot Noir, the winery’s best offering was the 2006 Pinot Noir Vinter’s Reserve. White wine aficionados will appreciate the 2008 Riesling, which prominently featured citrus flavors with the perfect balance of residual sugar.

Vineyards Cover the Hillside Separated by Forests of Pine


The preceding reviews represent the collective evaluation of the taste, color, flavor, and bouquet of the various wines by two experienced, yet non-professional, oenophiles. The plethora of gold medals that adorn relatively common wines demonstrates that wine appreciation is subjective and largely determined by individual preferences and ability to discern the subtleties of each wine. Both the quality and value of each vineyard were considered in order to guide perspective visitors and customers on their own exploration of the wines of the Willamette Valley in Oregon.

Wednesday, September 16, 2009

Oregon Wineries and Vineyards: Lane County and the Southern Willamette Valley

Rows of neatly manicured vineyards adorn the hillsides of Oregon’s winemaking regions. Lane County, extending from the Oregon coast to the Cascade mountain range in Central Oregon, includes the southern portion of the Willamette Valley, Oregon’s most notable viticultural region. Located southwest of Eugene, the naturally irrigated hills are intermittently populated by relatively young vineyards scattered among forests of pine trees and grass covered lowlands. Pinot Noir, identifiable by the tight pinecone shaped clusters of small dark purple berries, is the dominant red wine varietal of the region. The Willamette Valley is ideally suited for the varietal as it shares a similar climate and longitude with the Burgundy region of France, which pioneered Pinot Noir cultivation and has established the benchmark for quality worldwide.

Rows of Pinot Noir in the Southern Willamette Valley

The Southern Willamette Valley is sparsely populated with relatively young vineyards, but the region generally lacks the quality or experience of its northern competition. The largest vineyard in the area is King Estate with 465 acres of organic vineyards and a monstrous mountain top estate with banquet rooms, a restaurant, and winery facilities. King Estate is sure to be a regular stop on wine tasting tours, but it features relatively common wines across a confusing array of brands in a failed attempt to distinguish relative quality. The 2006 Craftsman Gewurztraminer had a nice floral bouquet and relatively high residual sugar, but the red wines were unanimously mediocre.

A few miles to the south in Lorane, Oregon is a small rustic vineyard, Chateau Lorane. Featuring a relatively unusual portfolio of varietals for the Willamette Valley, Chateau Lorane fails to impress in its production of Tempranillo and Merlot but had a slightly more interesting hybrid varietal, Leon Millot. A very sparsely grown French-American hybrid, Leon Millot is considered to have Burgundian characteristics, if not heritage, and was a unique alternative to the abundant array of Pinot Noir.

Closer to Eugene, Oregon is Sweet Cheeks Winery, a small vineyard with a tasting room that is dwarfed by its spacious patio and picnic facilities that feature panoramic views of the Briggs Hill Valley. Their affordably priced wines would likely appeal to the neophyte looking for a pleasant (and free) tasting experience, but generally were of average quality. The 2007 Dry Riesling was extremely dry and had a metallic residual, a stark contrast to the 2008 Semi-Sweet Riesling which was very sweet and had vibrant peach flavors. Perhaps the most appealing wine was the 2008 Pinot Fusion, a blend of Pinot Noir and Cabernet Franc aged briefly in old American and French oak. While not imbued with intense flavors, the wine was well balanced and a marked improvement on a relatively disastrous 2007 Pinot Noir.

The South Willamette Valley from Sweet Cheeks' Winery


Silvan Ridge Winery, located directly across the road from Sweet Cheeks Winery, features a better array of red wines. The 2007 Silvan Ridge Pinot Noir had earthy aromas with a flavorful berry finish. In contrast, the 2006 Silvan Ridge Merlot and 2007 Syrah lacked any distinctive characteristics and were relatively disappointing. The 2006 Pinot Noir Reserve had a more muted nose and less berry flavors on the palate rendering it lacking compared to its peer. Finally, Silvan Ridge featured a few wines from Southern Oregon’s Rogue Valley including the 2006 Cabernet Sauvignon and the 2005 Elizabeth’s Reserve, a blend of Bordeaux varietals and some Syrah. The Cabernet had good flavor and was much lighter on the oak compared to its Californian counterparts, but the Elizabeth’s Reserve was unfocused and inferior to most Bordeaux style blends.

The generally small vineyards of Southern Willamette Valley are welcoming and offer a more rustic experience compared to the large commercial ventures of Napa or Sonoma, California. Many have been founded only recently and seem to lack the experienced staff of a larger operation, but a handful of notable wines can be found among the array of enological creations. The region, as a whole, seems to be in its infancy compared to the relatively more organized Northern Willamette Valley, but it will likely develop into a formidable competitor in the coming decades.

Sunday, September 13, 2009

Big Ten vs. Pac-10: Oregon and Purdue Meet on the College Football Gridiron

From the very first Rose Bowl Game (known then as the Tournament East-West football game) pitting the University of Michigan against Stanford University, the Big Ten and Pac-10, two of the most dominant college football conferences, have been bitter rivals. Despite the geographical distance that separates the conferences, they have long shared similar values, such as a commitment to amateur athletics and racial diversity. With the state of college football in flux after WWII, these values and a shared vision of college athletics inspired a 1946 agreement between the existing incarnations of the Big Ten and Pac-10 conferences to send their respective conference champions to meet annually in the Rose Bowl.

The two conferences are characterized by vastly different styles of football, often leading to criticism of the Big Ten as lacking nationally competitive teams and the Pac-10 as a top-heavy conference without much depth. USC, of the Pac-10, has dominated college football over the past decade with numerous Heisman Trophy Winners and National Championships. Over the past fifteen years, however, Ohio State has the best winning percentage in college football while USC barely breaks the top 10 at ninth. The Big Ten has experienced much more balance top to bottom, but has possibly lacked the same caliber of talent in skill positions, especially in the concentration that USC has enjoyed. The explosive offenses of the Pac-10 often fail to counterbalance weakness on the defensive side of the field, while the more balanced offensive style of the Big Ten is possible only as a result of stingy defenses. These contrasting strategies result in some of the most memorable battles of the college football season.

On September 12, 2009, the Purdue Boilermakers crossed the country for a rematch against the heavily favored Oregon Ducks of the Pac-10. The 2008 meeting in West Lafayette, IN was a memorable battle, with the overtime victory propelling the Oregon Ducks to an eventual Holiday Bowl victory in San Diego while the loss presaged a season of disappointment for the Purdue Boilermakers. With the highly rated Oregon Ducks entering the season as Pac Ten contenders and the Purdue Boilermakers rebuilding under new head coach Danny Hope, the expectations for the 2009 rematch were heavily skewed in favor of a dominating performance by the Ducks. A solid win by Purdue in their season opener against Toledo followed an Oregon loss against a quality Boise State team in the opening game of the 2009 college football season. The Ducks were hungry for a statement victory and the untested Boilermakers from the Big 10 presented the perfect opportunity.

University of Oregon's Autzen Stadium

The rematch in Oregon’s Autzen Stadium took place on a pleasant summer evening in Eugene, OR. While the summer warmth drifted away with the setting sun, the energy of the 58,000 fans was only beginning to heat up. First year Boilermaker head coach Danny Hope was anxious to prove that Purdue was back to its winning ways while Oregon was determined to show that their season wasn’t over with the loss of their star running back LaGarrette Blount, who was suspended for the season for punching Boise State’s Byron Hout after their season opening loss.

University of Oregon's Autzen Stadium Under the Lights

The back and forth game, indicative of two evenly matched teams, was characterized by untimely turnovers by Purdue and backbreaking penalties on Oregon. Oregon scored first, going up 3-0 in the first quarter on a field goal, but the teams exchanged two touchdowns each before Purdue drove the field and kicked a chip shot to tie the game at 17 at the half. Despite the fact that the Oregon fans loudly proclaimed “it never rains in Autzen Stadium,” the intermittent drizzle seemed to come and go with the changing tides of the game. After Oregon returned the opening kickoff of the second half to midfield, the Purdue defense forced a fumble and the offense drove down the field to go up 24-17. Purdue would ultimately return the favor, throwing one interception for a TD and later fumbling the snap which was run in for another touchdown by Oregon. The intermittent drizzle had now become a pouring rain in perhaps an ominous sign for the Boilermakers. Purdue drove the field, scoring a touchdown in what looked to be another game tying performance, but they missed the extra point on a low kick that was partially blocked. After a few fruitless exchanges and some Oregon penalties, the Ducks had the ball on a 3rd and 20 deep in Purdue territory. The Ducks evaded numerous Purdue tacklers to go in and score giving them an eight point edge. Purdue nobly drove the field on the final drive of the game and scored on a 4th and 11 halfback pass giving Oregon only a 2 point edge. Purdue’s tight end caught the two point conversion in what would have set up a repeat of last year’s overtime game, but he stepped on the line in the back of the end zone giving the Ducks a two point win.

Purdue Drives for Opening Score of the Second Half

The exciting Oregon versus Purdue matchup along with a come from behind win by USC over Ohio State may have given the Pac-10 the edge, but the highly competitive and exciting games leave little doubt that these conferences are evenly matched. As in all football games, the winner is often determined by who makes plays at pivotal points in the game. Purdue’s missed extra point, inability to stop Oregon on 3rd and 20, and numerous turnovers for scores gave the Ducks the edge they needed to pull out the win, but the excitement of the game was hard to beat.

Tuesday, September 8, 2009

California Horse Racing: 2009 Pacific Classic Stakes at Del Mar

Overview
The Del Mar Thoroughbred Club and Racetrack, nestled snugly in a valley between I-5 and the Pacific Ocean, is one of the premier horse racing facilities in the country. With average attendance and daily handle figures that place it among the top two tracks in the country annually, Del Mar attracts some of the best horses in the world to its annual summer meet. The racetrack, made famous by Bing Crosby’s song Where the Surf Meets the Turf, hosted the legendary Seabiscuit-Ligaroti match in August 1938 where more than 20,000 fans watched as Seabiscuit edged Ligaroti by a nose. Since then Del Mar’s popularity has exploded, taking a break only during World War II when the grounds were used to train Marines and support the war efforts. A massive $80 million renovation to the grandstands in the early 1990’s gave birth to the richest race in the country, the $1 million Pacific Classic Stakes, and has established the modern day Del Mar Racetrack as one of the most beautiful facilities in the country.

The Paddock at the Del Mar Thoroughbred Club

Facilities
The grandstands at the Del Mar Racetrack are divided into the Clubhouse ($10 admission) and the Stretch Run ($6 admission). The two sections are divided by the finish line and offer varying privileges. The Stretch Run directly precedes the finish line and has four levels of seating, two of which are predominantly reserved boxes. Admission to the racetrack does not include a reserved seat, but there will be limited free general admission seating on the fourth and fifth levels except for Opening Day and Pacific Classic Day. The remaining stadium style seats can be reserved for an additional fee. A substantial ground level viewing area in front of the grandstands enables visitors to bring their own seats or stand at the rail of the main track for up close viewing.

A Crowd of 42,549 Enjoys the 2009
Pacific Classic Day at Del Mar

The Clubhouse provides full oncoming views of the stretch run and finish line, but it has less available general admission seating because this section of the grandstands is dominated by reserved boxes and the members only Turf Club areas. Del Mar has three general admission restaurants, two in the Clubhouse section and one in the Stretch run, where a table for four can be reserved for the day (additional fee). These restaurants are in the lower level of the grandstands, but they have a good view of the first and fourth turns along with the straightaway. For those looking for a less expensive dining option, there are many concessionaires selling food and drinks throughout the grandstands.


2009 Pacific Classic Day
In addition to the $1 million Pacific Classic, the race card for the Pacific Classic Day features two other graded stakes races, the $300,000 Grade 1 Pat O’Brien Stakes run on the main track and the $350,000 Grade 2 Del Mar Derby on the turf. Zensational, a three year old that won Grade 1 races in his last two starts, was heavily favored in a small field for the Pat O’Brien Stakes, a seven furlong sprint that was the fourth race on the card. Winner of the Triple Bend Handicap at Hollywood Park in early July and the Bing Crosby Stakes at Del Mar in early August, trainer Bob Baffert and jockey Victor Espinoza sought a repeat for the impressive thoroughbred on Del Mar’s main track. Zensational failed to disappoint, using his impressive speed to lead the entire race by multiple lengths before runner-up Noble Court closed to within a length at the finish. The win marks Zensational’s fifth win in seven starts, suggesting future dominating performances are likely.

Zensational Dominates the Field
in the 2009 Pat O'Brien Stakes at Del Mar

The Del Mar Derby, the sixth race of the day, is a one and an eighth mile Grade 2 turf race for three year olds. A nine horse field presented no clear favorite, but Afleet Eagle and Battle of Hastings were the obvious contenders. As the horses rounded the final turn for home, surprising 22-1 long shot Rendezvous found a burst of speed and closed strong, nosing out leader Battle of Hastings in a photo finish. The win marked Rendezvous’ fourth win in 13 starts and would be one of three wins on the day for jockey Joel Rosario.

Rendezvous (#1 in Red) and Jockey Joel Rosario
Close Strong to Win by a Nose

Ninth on the card, the 19th annual Pacific Classic Stakes, a Grade 1 race for horses three years old an up, is the capstone race of the Del Mar season. Recent winners such as Lava Man and Pleasantly Perfect have earned millions of dollars in prize money placing them among the true champions of horse racing. The one and a quarter mile race is run on the main track at Del Mar, which was converted from dirt to the safer Polytrack in 2007 and features a straight chute start down the stretch run and two turns around the oval track. Santa Anita Handicap winner Einstein entered the race as one of the favorites (4-1), but was run down on the homestretch by jockey Mike Smith and the 24-1 underdog Richard’s Kid. Smith, the Hall of Fame jockey that has been featured on Animal Planet’s reality TV show Jockeys, rallied wide around the final turn and finished strong with favorite Rail Trip (5-2) trailing Einstein for third.

2009 Pacific Classic Stakes Winner Richard's Kid
and Jockey Mike Smith Celebrate Their Win

Following Zensational’s strong finish in the Pat O’Brien Stakes, trainer Bob Baffert’s Pacific Classic victory with Richard’s Kid marked his second big win of the day and capped an exciting day of upsets. The victories secured spots for both of Baffert’s horses in November’s Breeders Cup World Championships, with Zensational appearing in the Sprint Division and Richard’s Kid competing in the Classic Division. With the pacific sun setting on another exciting meet at Del Mar, Wednesday’s Closing Day celebrations will leave race fans eagerly anticipating the return of these champions at Arcadia, California’s Santa Anita Park on November 6th and 7th, 2009.

Tuesday, September 1, 2009

California Wineries and Vineyards: Santa Barbara County

Overview
Santa Barbara County, a relatively young wine growing region in California, burst on to the national scene with the release of the 2004 Oscar winning movie Sideways. The Central Californian region, best known for the affluent coastal city that shares its name, is located approximately 100 miles northwest of Los Angeles along US Highway 101. The rugged mountainous terrain benefits from cool evening temperatures and a warm dry daytime climate that is ideally suited for the Pinot Noir varietal popularized by Alexander Payne’s cinematic production. The sun scorched hillsides are naturally adorned with dry grasses and hearty trees that share the land with roving herds of cattle. Winter rains and cooler temperatures breathe new life into the landscape, but average summer temperatures swing from lows in the 50s to sweltering highs in the 90s or low 100 degrees Fahrenheit.

Rows of Vines Adorn the Hills of Northern Santa Barbara County

While the northern part of the county has traditionally been a rural agrarian community and the home of Michael Jackson’s Neverland Ranch, the region now boasts an eclectic cast of characters devoted to crafting fine wines that occasionally rival premier releases from Napa or Sonoma, its richer cousins to the north. The first winery in the Santa Ynez Valley was a collaboration of Brooks Firestone, the grandson of the founder of Firestone Tire and Rubber Company, his father and some neighboring ranchers that began with 250 acres of vines. Zaca Mesa winery, another of the early pioneers of Santa Barbara County, was planted in 1973 and has since focused on the varietals of the Rhone Valley of France. Other prominent figures including actor Fess Parker, famous for his roles as Davy Crockett and Daniel Boone in the 1950s and 1960s, planted over 700 acres of vines in the 1980s and developed multiple resort hotels in the county. More recently, entrepreneurs such as William Foley II, the CEO of Fidelity National Financial and CKE Enterprises (Carl’s Jr, Hardee’s, and other fast food restaurants), facilitated the growth of the fragmented family vineyards by consolidating smaller wineries and establishing greater market visibility. Bill Foley established Foley Family Wines in 1996 with the acquisition of Lincourt Vineyards and has since acquired Sebastiani Vineyard of Sonoma County and Firestone Vineyard, among other notable wineries throughout California and Washington.

The predominant wines of Santa Barbara County are Sauvignon Blanc and Chardonnay for whites and Pinot Noir and Syrah for reds. Many wineries blend Syrah with Grenache, Mourvedre, or Viognier in the traditional style of the Rhone region in France. While it seems that white wines dominate most vineyards’ offerings, a few wineries have developed a broad array of quality red wines, most notably Blackjack Ranch Vineyards. The climate of the Santa Ynez Valley and the surrounding appellations limits vintners’ ability to grow popular Bordeaux varietals such as Cabernet Sauvignon, Merlot, and Cabernet Franc, but some wineries have been able to produce well reviewed wines that can compete with the more prominent production of Napa and Sonoma County.


Notable Vineyards
(finest of the region)

Lincourt Vineyards
The premier acquisition of Foley Family Wines, Lincourt Vineyards is located in the heart of the Santa Ynez Valley close to Los Olivos, CA. Exploiting the natural proclivity of the region, the winery’s current releases feature an exceptional 2007 Santa Barbara County Pinot Noir and a 2006 Santa Ynez Valley Syrah. Both feature a very aromatic nose with a smooth finish. The winery also produces a light and flavorful Pinot Blanc for those interested in refreshing summer wines.

Blackjack Ranch Vineyards
Vintner Roger Wisted, obviously proud that his wine was featured in the movie Sideways, produces perhaps the broadest array of quality red wines in the region. Wine critic Robert Parker has favorably reviewed many of Blackjack Ranch’s releases, which are comprised largely of the Chardonnay, Syrah, Merlot, and Cabernet Franc that are planted in the hills surrounding the production facilities. The Chardonnays are well refined and flavorful, but it is the artful blending of the reds that creates some of the most memorable wines. Their Harmonie releases are Bordeaux style blends that are consistently highly rated, but the 2005 Allusion was perhaps the best value. The 81% Cabernet Franc and 19% Merlot blend truly captured the best character of the grapes while celebrating the distinctive flavor of Cabernet Franc. While Blackjack Ranch features some impressive offerings, the aggressive pricing reflects a slightly inflated valuation reflective of the obvious pride and attention to detail of the winemaker.


Mentionable Wineries
(collections including a few standout wines)

Gainey Vineyard
With possibly the nicest tasting room and overall experience, Gainey Vineyard highlights their black label “Limited Selection” wines that are only available to club members. Most notable were the 2006 LS Pinot Noir and 2007 LS Cabernet Franc. Both were wonderful wines and worthy of purchase, but the club membership options do not include a red only Limited Selection option. The LS Chardonnay was much better than the LS Sauvignon Blanc, but fans of red wines are forced to purchase unwanted bottles of white wines in the Limited Selection club or supermarket quality white label Gainey wines which are bundled in the red only club. Overall, Gainey Vineyard produces some quality wines, but they remain out of reach to non-club members.

Koehler Winery
The Koehler Winery presents a range of Rhone varietals, but generally the quality does not coincide with the aggressive pricing. The 2005 Santa Rita Hills Pinot Noir had a nice finish, but was relatively lacking in flavor. Alternatively, the 2006 Syrah Reserve Estate was very flavorful and velvety on the palate, but had a slightly acidic residual. The biggest disappointment was the 2005 Cabernet Sauvignon Estate which had the nose of a Cab but lacked the bold distinctive flavors.

Firestone Vineyard
The first winery of Santa Barbara County presents an affordable lineup in a large tasting room with great views. The Cabernet Franc Rose was uninteresting and many of the reds lacked the complexity of their more expensive alternatives, but generally Firestone’s wines would be a reasonable value and likely could be found at local retailers. The 2006 Santa Ynez Valley Syrah was the best of the lot.

Curtis Winery
Similar to its neighbor Firestone Vineyard, Curtis Winery boasts an affordable portfolio of wines that would appeal to a broad range of tastes. The 2005 Santa Ynez Valley “Crossroad” Grenache had a distinctive blackberry nose and an earthy finish. Alternatively, a 2007 Viognier had a nicely fragrant bouquet complemented by flavors of tangerine and melon. The best of Curtis’ wines, however, was the 2005 Cabernet Syrah, a complex wine blending the fruit flavors of the Syrah with the distinctive boldness of Cabernet Sauvignon.

Foley Estates
Absent their decent Chardonnays, Foley Estates would likely be another disappointment. Both their 2008 Steel aged and 2007 French oak aged Chardonnay offerings presented a clean taste with full vibrant flavors. Unfortunately, their Rose and Rancho Santa Rosa Pinot Noir wines were relatively bland and forgettable. The Barrel Select Pinot possessed a pleasing toast from the 20 months on oak, but it failed to live up to the relatively steep price tag.

Zaca Mesa Winery
Despite a relatively unimpressive selection of wines, the Zaca Mesa Winery avoids the cellar floor with its 2005 Estate Syrah, a wine with a muted nose but an oaky berry finish. Outside of the Syrah, the portfolio fell a bit flat. The 2005 Estate Z Three, a blend of Rhone varietals Syrah, Mourvedre, and Grenache, will possibly mellow with age, but currently is quite astringent.


Mountain and Vineyard Views from Firestone's
Santa Ynez Valley Winery


Bottom of the Barrel
(collections of largely uninspiring wines)

Roblar
An impressive building at the intersection of CA 154 and Roblar Ave, just south of the town of Los Olivos, leaves one anticipating a memorable tasting experience, but the naïve will leave disappointed. The inflated pricing of both the tasting and the bottles reflects a doomed attempt to recover the investment in the tasting room and adjoining restaurant. While the restaurant may have potential, the wines are forgettable.

Dierberg and Star Lane Vineyards
The vineyards of Dierberg and Star Lane are located in the Santa Rita Hills and the Santa Maria appellation of Santa Barbara County. The winery, located west of US 101 on CA Highway 246, presents an array of harsh unimpressive reds and biting whites. Further experience and refinement will be required before a more meritorious wine is produced.

The Brander Vineyard
A rustic winery in the Santa Ynez region, the Brander Vineyard exudes Old World simplicity in design and adornment. The white wines would be adequate table wines, but the reds were rather unexciting. During a recent visit, a debate among the tasting room attendants about the bouquet and flavors of the Cabernet Sauvignon resulted in the revelation that one had recently disposed of multiple bottles due to perceived impairment of the wine. For the price, much better wines can be found elsewhere, likely even at your local supermarket.

Cottonwood Canyon Vineyard
A free tasting at Cottonwood Canyon Winery in the Santa Maria Valley inspired some goodwill, but the imbued esteem quickly eroded as successively mediocre wines were presented. None of the offerings were particularly notable, even to the neophytes with which we shared the tasting room. Their discussion about the relative merits of Cottonwood Canyon’s offerings compared to Charles Shaw’s “Two Buck Chuck” is rather telling.

Riverbench Vineyard
A homey and welcoming tasting room adds appeal to Riverbench Winery’s proposition, but unfortunately its portfolio of Chardonnay and Pinot Noir wines lacked a similar charm. The small tasting room reminds one of a nicely appointed living room in a country home with beautiful views of the vineyard. The wines possessed some refined flavors, but featured an extremely astringent nose that overwhelmed the bouquet. Riverbench is possibly worth a visit if passing through, but it is not yet a source of inspirational wines.

Foxen 7200
Another Santa Maria Valley winery that failed to impress, Foxen 7200 presents a hodgepodge of wines that lack both focus and balance, consistent with typical cheap grocery store offerings. Their pricing suggests that Foxen 7200 has a more elevated perception of their efforts, but the flavors were relatively flat and many of the bouquets were inconsistent with the varietal leaving one completely uninterested.

Fess Parker Vineyards
Some Fess Parker enthusiasts and respected critics may argue with the assertion that their wines are “Bottom of the Barrel”, but most were entirely overpowering or astringent at best while one Chardonnay had a moldy or musty nose that was an absolute turnoff. Another nearby patron complained about this Chardonnay and was promptly offered an alternative, but it certainly did not set the stage for an impressive tasting. As for the reds, both Pinot Noir alternatives were rather bland and flavorless while both of the highly rated Syrah offerings had an astringent nose with the flavors overwhelmed by the bold bite of alcohol.

Grapes Nearing Maturity - Late August in the Santa Ynez Valley


The preceding reviews represent the collective evaluation of the taste, color, flavor, and bouquet of the various wines by two experienced, yet non-professional, oenophiles. The plethora of gold medals that adorn relatively common wines demonstrates that wine appreciation is subjective and largely determined by individual preferences and ability to discern the subtleties of each wine. Both the quality and value of each vineyard were considered in order to guide perspective visitors and customers on their own exploration of the wines of Santa Barbara County.