Liquid Assets: California Dreamin': A Snapshot of the Global Wine Market

Highlights from an SVB Wine Luncheon in London, England 

OXFORD, England — It is the last day of final exams at Oxford University. Euphoria is in the air, along with the fragrance of fine sparkling wine as it flows freely through the college quadrangles. Students are celebrating the end of another grueling examination season.

Predictably, the wine shoppe on the High Street is bubbling with activity, too. Yet, to a California wine lover it is a bit lonely here. The shelves are stocked with delicious Old World wines from France, Germany, Italy and Spain, while the New World selections are confined to a distant back shelf. If I look hard enough between the bottles from Chile and South Africa (as well as the dozens of New Zealand wines) there are exactly two California choices — both for under £7 (about US$12)! Given their over-stretched budgets, the students are reaching even lower on the price/performance curve. Their beverage of choice looked to be a £5.99 Liebfraumlich, the sweet German wine from the Rhine region.

With the United States as the world's fourth largest producer of wine and California representing 90 percent of the U.S. production, one would think that a bit more 'real estate' on the wine shoppe shelf might be appropriate. And it is the California winemaker's dream to have his or her product enjoyed by folks outside of the Golden State.

London Calling! 

Thankfully, an opportunity surfaced that would help to turn things in the right direction. At the invitation of the Silicon Valley Bank London office, I was asked to host a 'California Dreams' Luncheon for 40-50 of SVB's London-based venture capital clients. It took place at the tastefully appointed Hempel Hotel in the center of London.

Caption for photo: Raymond presents 2005 Duckhorn Vineyards 3 Palms Merlot with SVB London colleagues Anna Jennett and Elly Gilbert.

As a major European capital and cosmopolitan center London is a much more likely place to find great California wines than Oxford. In fact, it was actually a great pleasure to do so. At the venerable wine merchant Berry Brothers & Rudd, numerous excellent California selections were on display: Wine from the Central Coast (Qupe, Au Bon Climat), the Santa Cruz Mountains (Ridge Vineyards), and of course Napa and Sonoma.

With the help of the team from SVB London, we were happy to present four different wines from two world-class California producers: Ramey Wine Cellars and Duckhorn Vineyards.

World-Class Wines for a First Rate Meal 

Upon arrival, guests were offered a chilled glass of 2008 Ramey Chardonnay from the Russian River — a mineral-driven, bright wine with aromas of pear and spice cake. One of the guests immediately mentioned that it reminded him of "a Grand Cru from the Chablis Region of France." Of course, his generous compliment revealed the wine reference point for many of the guests at the lunch: the republic of France!

The first course was a salad of Colchester crab, avocado, tomato and coriander. And the perfect pairing was the seriously focused 2009 Duckhorn Vineyards Sauvignon Blanc. The addition of Semillion showcases the passion fruit and "pineapple upside-down cake" flavors! One of the guests said it reminded her of the wines she enjoys from Sancerre and Pouilly Fumé. Yes – bingo, again! These are the regions in France that are famous for growing Sauvignon Blanc!

The main course was a classic choice: fillet of aged Galloway beef with wild mushrooms, gnocchi, baby onions and Alsace bacon. Naturally, for a masterpiece like this the obvious choice was the 2005 Duckhorn 3 Palms Merlot. A personal favorite of the SVB sommelier, this plummy, black cherry gem of a wine with Earl Grey and allspice flavors provided the ideal platform for the succulent and perfectly prepared beef fillet.

Once again, after tasting this wine, several guests said they were transported to the right bank of Bordeaux and to wines from St. Emillion and Pomerol — wines which are predominantly Merlot-based. Oh, how I wish the Duckhorn team could have been with us at the table to hear all of the favorable comments! Alas, this brief dispatch will have to suffice.

Finally, guests were offered a glass of the 2006 Ramey Larkmead Cabernet Sauvignon for their dessert course of vanilla crème brulée and rhubarb sorbet. It was a fine way to land a powerful and deeply satisfying meal.

Taken together, it was more than just comforting to hear the guests at the London meal respond so enthusiastically to these California wine treasures. It indicated that there is both interest in — and demand for — California wine in London. Happily, as Silicon Valley Bank brings technology banking to the UK, more West Coast wines are sure to follow as well.

While it is foolhardy to suggest that California wine will ever share the same shelf space as French wines in the British wine stores, the time is clearly ripe to help California winemakers' dreams become a reality. And if last week's London luncheon is any indication, this dream is clearly within reach — one glass at a time!

Wines mentioned in this article include:

• 2009 Duckhorn Vineyards Sauvignon Blanc
• 2008 Ramey Cellars Russian River Valley Chardonnay
• 2005 Duckhorn Vineyards 3 Palms Merlot
• 2006 Ramey Cellars Larkmead Vineyards Cabernet Sauvignon