NEWSLETTER

Slow down? We can't!

January 31, 2007

After harvest last year, most of us made a commitment to our families that we would have a more balanced life - dinners before 9PM, recalling our children's names, opening mail in the same month we received it, etc. I think that lasted all of two weeks. When January rolled around and we started our "only nine more months to harvest" mantra, we realized that there is no slowing down. We've signed up to create a new wine industry with you and although we've all accomplished a lot we're really just getting started. So we're looking at another year of leftovers, calling our children "hey kid" and pre-paying all of our utilities - but we've got the best jobs in the world and wouldn't trade this for anything. Here's what's been happening…

Moving On Up… To The East Side
I know I shouldn't put this in writing yet, but, well, we're moving. As many of you have seen firsthand, our 17,000 square feet just isn't enough and we end up playing industrial scale Tetris to get everything to fit. Yesterday we signed a lease on a space in San Francisco's Dogpatch neighborhood (http://tinyurl.com/2v8j5f). It's about one mile east of our current location and is 30,000 square feet with much higher ceilings, better parking and much better aesthetics. We'll be building out a tasting area and room for education and other events. Our current plan is to move in late March. More as it develops.

2007 Allocations Begin in Mid-February
We are finalizing our initial 2007 vineyard list and will open up allocations in the second half of February. We should see most of 2006 vineyards back as well as some exciting new additions. This year we will make over 1,000 barrels (up from 600 last year). One very cool trend we've seen is that we have some amazing growers CALLING US. Keep in mind that most growers don't really get any relationship at all with wine enthusiasts because there are wineries, distributors and retails in between. Many have expressed interest in us bringing folks to the vineyard throughout the year and that sits fine with us. You will receive an update on allocations from Dave Gifford on the exact timing, but feel free to contact him in the meantime.

Welcome Dan Lintz - VP, Crushpad Commerce

Last November we started a search for a senior executive to run Crushpad Commerce. In the past, Commerce was managed with bits and pieces of people's time but it's now grown to such a large part of our business (50%) that it needs some serious management. Dan lives in Napa and comes to us from a number of CEO roles with technology companies and seven years as CEO of multiple McDonald's franchises. I'm not making any promises, but word on the street is that a couple bottles of wine will get you a peek at the Secret Sauce recipe. If you're a Commerce member, expect to hear from Dan shortly.

Financing is Complete
We're just winding up a financing that enables us to expand our staff, facility and invest in the next level of winemaking equipment. Although our original intention was to raise $2 million in equity financing, we had a huge amount of interest and ended up with around $3.5 million in a combination of equity and debt financing. Six months ago I was writing home equity checks so this is a big jump for us. It will result in us being more responsive and making better and better wine.

Congrats to Mark Moretti Winery
Mark's inaugural wine, his 2004 Napa Valley Cabernet, just took Gold at the American Wine Society's 2006 competition. This follows on the footsteps of Dain's 92 point Robert Parker score and other big scores and medals from Vie and San Sakana. Check out more at www.markmorettiwinery.com/.

2006 Barrel Samples Going Out by Mid-February
Missed our 2006 Barrel Sample Day (see photos)? It was a blast with around 400 attendees braving the perils of super-young barrel samples. For clients who live outside of the Bay Area, we will be pulling together your barrel samples and sending them out. Note that many of the wines are still going through primary and/or secondary (malolactic) fermentation. But it's fun to taste these infant wines and watch them evolve over time.

See us at Boston Wine Expo
On February 10th and 11th, we will be at the Boston Wine Expo at the Seaport World Trade Center. Dave and Alex will be there but we could use more help. If you live in the Boston area and would be game to help us man our table, to pour wines and tell our story, please contact Dave Gifford.

2006 Adopt A Barrel - Now's The Time
Although we made all the wine humanly possible last year, we never make enough adoption barrels. 2006 was far and away our best winemaking year with lots of fruit, extract and color. People know me as pretty grumpy about quality but even I am blown away by what I'm tasting. Not surprisingly, we are starting to run low on varietals - especially cab and pinot. If you are thinking of picking up an extra '06 barrel please contact Dave Gifford sooner rather than later.

...Michael