Since starting his quest for the ultimate Napa Valley expression of a Bordeaux wine blend in the early 1980s, Jayson Pahlmeyer has provided a stage for several rising winemaker stars, such as Randy Dunn and Helen Turley.
Production varies from 10,000 to 15,000 cases a year, depending on output from estate grapes and vines under decades-long contracts.
The large selection of wines under the Pahlmeyer label, many vineyard-designates, range from Napa and Sonoma Coast chardonnay wines (from $70 a bottle) to Bordeaux blend Pahlmeyer Proprietary Red ($115 for 2008, $125 for the pending 2009 vintage). There's even a nearly all-merlot wine in the lineup.
The 2-decade-old Jayson second label has a Bordeaux red blend ($55) as well as North Coast chardonnay and pinot noir selections.
Mr. Pahlmeyer will be a panelist at the Impact Napa 2012 conference the morning of Aug. 30. He and winery President Brian Hilliard spoke with the Business Journal about the tough business climate in the past three years and opportunities for increasing demand from the next generation of fine-wine lovers.
What are the main challenges facing the Napa wine industry and your winery?
Jayson Pahlmeyer: Water supply, definitely, is the first issue. Next are labor and the cost of producing wine. Things becoming very expensive.
Brian Hilliard: The price of real estate is not going down.
Mr. Hilliard: Challenges specific to Napa are creating bridges between generations of consumers. A long-standing stalwart for Napa wineries have been baby boomers, and now we're trying to jump on the Millennial bandwagon. It's not easy.
Globalizing the Napa brand is a challenge. It's a different competitive marketplace than a few years ago. Napa really runs the risk being more like Bordeaux than it wants to be.
Issues facing Pahlmeyer are economic uncertainty and Millennials. What we all went through when the bottom fell out of the economy in 2008 was devastating. To go through that again would be devastating for us and everyone else. We had to actively adapt business practices to help weather it.
Millennials are the future for us, and we need to figure opportunities to penetrate that.
Mr. Pahlmeyer: The large core of our sales are to baby boomers. Going forward, we want to make ourselves and other Napa Valley wineries appealing to up-and-coming wine buyers.
Mr. Hilliard: Our water concerns aren't nearly as deep as concerns for the Napa wine industry. We have a strong water supply on our Atlas Peak vineyard. Our Wayfarer Farm Vineyard on the Sonoma Coast is more challenging. We're basically a dry barren desert for most of the year, and it's not a plentiful natural resource. Without water in the vineyard and in production, our industry would not exist.
Mr. Pahlmeyer: At Wayfarer, we drilled two $10,000 dry holes called "wells." But California water-conservation rules allow reservoirs if rainfall wouldn't run off your actual acreage. Because Wayfarer is on a hillside, we run pipes to collect rainwater. We have an overly designed capacity reservoir, so we're personally fine. With global warming, if we lose rainfall, we'll lose the vineyard.
Mr. Hilliard: There are a number ways addressing Millennials. Some are works in progress, so we can't divulge information this point. But it's around diversification of the portfolio to appeal to a broader audience. We recognize we're a stalwart brand in Napa and appeal to baby boomers and collectors, and there's a definite personality associated with us.
811 St. Helena Hwy. S., Ste. 202, St. Helena 94574, 707-255-2321, pahlmeyer.com
Impact Napa 2012 panelists
Bart Araujo, proprietor, Araujo Estate Wines
Andy Beckstoffer, president, Beckstoffer Vineyards
Jayson Pahlmeyer, founder and proprietor, and Brian Hilliard, president, Pahlmeyer Wines
Mario Zepponi, partner, Zepponi & Company