WEBVTT - How Wine Weathers Climate Change

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<v Speaker 1>Shift we go again, and we think we've got Scott

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<v Speaker 1>Becker clean in terms of a feed. He is the

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<v Speaker 1>owner of Realm Sellers. Scott is joining us along with

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<v Speaker 1>the winemaker Ben wat Touquette, and they are in zoom

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<v Speaker 1>and Napa Valley with an incredible shot behind them. Gentlemen,

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<v Speaker 1>fingers crossed that the technology is working. I think it's

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<v Speaker 1>easier to make wine than it is sometimes to get

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<v Speaker 1>technology working. Scott, come on back, tell us a little

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<v Speaker 1>bit about the approach that you guys are doing at Realm.

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<v Speaker 2>Yeah, that sounds great. Thanks for having us, and you

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<v Speaker 2>can hear me.

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<v Speaker 1>Okay, now much better, much better?

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<v Speaker 2>Great, okay, great great. Well, yeah, so you got a

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<v Speaker 2>little hillside view behind us of our vineyard here in

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<v Speaker 2>the sag Leap district in Napa Valley. And as I

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<v Speaker 2>was introducing Realm when we started, we didn't own this

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<v Speaker 2>hillside behind us. We actually didn't known any land.

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<v Speaker 3>It was.

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<v Speaker 2>We were buying fruit from select vineyards in Napa Valley

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<v Speaker 2>and producing the wine in someone else's facility. We used

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<v Speaker 2>to call that sort of the virtual winery model or

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<v Speaker 2>the asset light model, which was a way to get

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<v Speaker 2>started in Napa Valley today. But if you want to

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<v Speaker 2>make wine at the highest level, we believe you had

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<v Speaker 2>to own the land. And so in twenty fifteen we

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<v Speaker 2>began this migration from just buying fruits to starting to

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<v Speaker 2>own land. And today we have four different estates in

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<v Speaker 2>three different appellations within Napa Valley. We vinify the wines

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<v Speaker 2>from each of these places separately, and we bottle them separately.

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<v Speaker 2>So we think of realm as sort of a portfolio

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<v Speaker 2>of wines that collectively reflect the diversity of this beautiful place.

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<v Speaker 1>How much control more control does that give you over

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<v Speaker 1>the wines that you guys develop, Ben Walk, come on

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<v Speaker 1>in on this, you know, versus working with other vineyards,

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<v Speaker 1>versus actually owning it yourself.

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<v Speaker 3>Yeah, I think it's a huge difference to be able

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<v Speaker 3>to found the way we want to obvious the grapes

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<v Speaker 3>and to be able to process you know, you know,

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<v Speaker 3>we're own facilities. Such a tremendous change. Give us all

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<v Speaker 3>the control from the farming, to the winding, king to

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<v Speaker 3>the aging and guarantee to the old process up to

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<v Speaker 3>the buffing that we do every step under our control

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<v Speaker 3>and specx. So it's a tremendous change for the business.

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<v Speaker 4>So talk to me about the wine you guys, That's

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<v Speaker 4>what I want to get into here. You've got a

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<v Speaker 4>lot of blends which I love. One of them, the Tempest.

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<v Speaker 4>People maybe have heard of it. What exactly sets you

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<v Speaker 4>apart when it comes to your wines and your blends specifically?

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<v Speaker 4>What is your approach Benoir?

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<v Speaker 3>Well, I think we always focus for us on the

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<v Speaker 3>texture and try to capture the vintage, the best weekend

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<v Speaker 3>or ether to some single vinia designated because we're also

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<v Speaker 3>known for that, but also the blend. And here we

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<v Speaker 3>were testing a bar specifically, which is a cabinet savinion

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<v Speaker 3>based wine, and we get fruits from all over the

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<v Speaker 3>valley from Coombsville in the south to Calisto got a

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<v Speaker 3>warmer climate in the north, from zero ft elevation up

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<v Speaker 3>to nineteen foot nineteen hundred feet elevation. So I think

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<v Speaker 3>the goal for us is ready to capture in every

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<v Speaker 3>single vintage what's the essense of the vintage, to tail

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<v Speaker 3>war and find a way to marry all those elements

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<v Speaker 3>together to create a wine that's complex, complete and really

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<v Speaker 3>kind of showcase who we are and having that nice

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<v Speaker 3>flavors we all sort of take.

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<v Speaker 2>You to your port and to your question, Madison, you

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<v Speaker 2>know there's a something like over a thousand wine brands

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<v Speaker 2>in Napa Valley alone, and so how do you what is?

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<v Speaker 2>Everyone has their own philosophy, their own style. I think

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<v Speaker 2>ben Wana over the last decade plus have kind of

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<v Speaker 2>refined that approach for us, and I would describe the wine.

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<v Speaker 2>I think we sent you a bottle. Hopefully it made

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<v Speaker 2>it there. With all the all the news today and banking,

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<v Speaker 2>you should be drinking his last well tell.

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<v Speaker 1>Us actually, and I see you ben Wa drinking it.

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<v Speaker 1>Tell us about you did you sent a bottle of

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<v Speaker 1>the Bard? And I'm gonna put this out on Twitter

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<v Speaker 1>as well, but tell us a little bit about and

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<v Speaker 1>I'm going to actually pour some as you can hear. Yeah,

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<v Speaker 1>we like a little bit of sound. Sorry it wasn't

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<v Speaker 1>so elegant.

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<v Speaker 2>It sounds delicious.

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<v Speaker 1>I am a fan of red wine and I feel

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<v Speaker 1>like the variety out there is incredible. I'm going to

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<v Speaker 1>pass this glass to Maddie and then pour my own.

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<v Speaker 1>But tell us about the bar. We've got about a

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<v Speaker 1>minute and then we'll bring you back and talk some more.

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<v Speaker 2>Yeah, I think the Bard has done. While was starting

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<v Speaker 2>to introduces it's cabernet. It's predominantly cabernet, but from vineyards

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<v Speaker 2>all over Napa, and I think of that house style

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<v Speaker 2>for us is the tension between richness and freshness. So

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<v Speaker 2>if you think of it, hopefully, you know the wine

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<v Speaker 2>will come across as a big wine, a bold wine.

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<v Speaker 1>I was just gonna say, I just did a sniff

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<v Speaker 1>and it's really full. It's really lovely.

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<v Speaker 2>Yep, and so and that the counterpoint to that, hopefully

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<v Speaker 2>is the freshness and the tension that's in the wine,

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<v Speaker 2>the structure that it brings. And so we think of

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<v Speaker 2>the wine as obviously showing well today, but ultimately the

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<v Speaker 2>test for any great wine around the world is how

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<v Speaker 2>well it ages and evolves over time. And so that's

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<v Speaker 2>where we come up with this expression of the wines

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<v Speaker 2>are big but light on their feet, or an offensive

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<v Speaker 2>lineman who's also a ballerina.

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<v Speaker 1>Sometimes it's a great why you've got you've got my

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<v Speaker 1>producer laughing in the control, but it's a great way

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<v Speaker 1>to describe it. I think about all the people who

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<v Speaker 1>describe wines that is really just precious. We want to

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<v Speaker 1>those get back to our guests as we wind down

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<v Speaker 1>on this Friday, we're speaking with Scott Becker. He's the

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<v Speaker 1>owner of Realm Sellers and with us as also realms

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<v Speaker 1>winemaker ben Wa Touquette. They are still on zoom in

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<v Speaker 1>Napa Valley, California, and I have to say, gentlemen, in

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<v Speaker 1>the break, I use the viv you app and I've

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<v Speaker 1>downloaded it. So my husband's like, what kind of wines

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<v Speaker 1>do you want? I have a birthday coming up, and

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<v Speaker 1>he's like, uh, you know, and this is what I

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<v Speaker 1>like to do. But anyway, it is a lovely wine

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<v Speaker 1>and it really is pretty impressive. And I'm curious, you know,

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<v Speaker 1>as you guys are now owner of a vineyard, how

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<v Speaker 1>do you deal with one of the things that is

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<v Speaker 1>running a business that increasingly all business owners have to

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<v Speaker 1>deal with is the instability that is brought about by

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<v Speaker 1>climate change. And the wine industry in particular on the

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<v Speaker 1>West Coast out in Napa has seen it in a

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<v Speaker 1>big ways firsthand.

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<v Speaker 2>Yeah, it's a big topic. It's a topic we talk

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<v Speaker 2>about practically every day. It's sort of the existential question

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<v Speaker 2>that looms over Napa Valley or any wine growing region.

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<v Speaker 2>Just to take you back, you know, the first fires

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<v Speaker 2>that in this modern era came in twenty seventeen. Thankfully,

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<v Speaker 2>they came late enough that most producers had most of

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<v Speaker 2>their crop already in. In twenty twenty, the fires came

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<v Speaker 2>back to Napa Valley and it started to occur much

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<v Speaker 2>earlier in the growing season, in mid August, and so

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<v Speaker 2>in our case, that affected the entire crop. So we

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<v Speaker 2>didn't produce a wine from a red wine from the

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<v Speaker 2>twenty twenty vintage, and so you can imagine that the

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<v Speaker 2>entire years worth of livelihood goes up quite literally in smoke,

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<v Speaker 2>and so it's a factor. I think there's a little

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<v Speaker 2>bit of resiliency here and trying to stay positive. I

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<v Speaker 2>think technology is part of a solution. We've gotten much

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<v Speaker 2>better as a state and as a county and as

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<v Speaker 2>a wine growing community at understanding how to mitigate the

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<v Speaker 2>effects of fires or how to prevent them from turning

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<v Speaker 2>into two massive, ten thousand acre plus fires. I think

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<v Speaker 2>there's some treatments and experiments that are ongoing in the

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<v Speaker 2>vineyard and in the cellar to try to improve things

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<v Speaker 2>there as well. But whether it's fires, whether it's heat,

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<v Speaker 2>whether it's drought, earthquake in twenty fourteen, you know, those are.

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<v Speaker 2>But on the other hand, that's agriculture. There's a little

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<v Speaker 2>bit of this that that's what you sign up for

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<v Speaker 2>in this business, and so I think we can continue

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<v Speaker 2>to try to do our best, but we also have

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<v Speaker 2>to stay positive and not overreact here. And so thankfully

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<v Speaker 2>after the devastation of twenty twenty, we have two good

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<v Speaker 2>vintages in twenty twenty one and twenty two, so the

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<v Speaker 2>cellar is full again and we can continue to look forward.

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<v Speaker 2>But all it's ever present on our minds.

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<v Speaker 4>It's a great and really important part of the conversation.

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<v Speaker 4>I'm sure it has a huge impact on your bottom

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<v Speaker 4>line when things like that happen. Not to be so bloomberghee,

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<v Speaker 4>but another thing impacting every business owner right now macroeconomic

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<v Speaker 4>headwinds the economy. The bottle that Carol and I are

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<v Speaker 4>happily tasting right now comes in around one sixty five

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<v Speaker 4>dollars for the bottle. How are you thinking about growth

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<v Speaker 4>and your customer base given the current economic situation we're in.

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<v Speaker 4>Are you changing up who you're marketing to and you know,

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<v Speaker 4>any of your pricing because of the economy.

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<v Speaker 2>No, I think in this business you have to think

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<v Speaker 2>long term when we planted this hillside behind us. That

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<v Speaker 2>was a thirty year decision, and so of course we're

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<v Speaker 2>acutely aware of what's happening. We're seeing it in the

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<v Speaker 2>wine business, some of those inflationary supply chain pressures. Our

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<v Speaker 2>shipping costs of members and customers this year is up

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<v Speaker 2>eight percent over last year. You know, the same thing

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<v Speaker 2>on quarks, harder to get glass. We're just dealing with

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<v Speaker 2>long lead times on paper for labels. So the industry

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<v Speaker 2>is seeing it just like any other industry. But I

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<v Speaker 2>think you know the benefit of this business is we

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<v Speaker 2>have to think long term. You know, the wine that

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<v Speaker 2>you guys are having today, we hope will continue to

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<v Speaker 2>age gracefully for twenty or thirty years. And so when

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<v Speaker 2>you take that long view, we always say, we have

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<v Speaker 2>to continue to play for the long view, but we

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<v Speaker 2>have to survive the short term. And so there's a

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<v Speaker 2>little bit of understanding what's happening and making sure that

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<v Speaker 2>we're tracking budgets and trying to be smart about things.

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<v Speaker 2>But at the same time, you know, we see incredible

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<v Speaker 2>upside potential for Napa Valley wines. Internationally. That's not something

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<v Speaker 2>there's historically most California wine has been consumed inside the US.

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<v Speaker 2>And while we think the US consumer for high end

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<v Speaker 2>wine anyways is still quite healthy and is still spending.

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<v Speaker 2>Maybe they're not on as many marrying lists, so they're

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<v Speaker 2>not buying as much, but they are still buying. And

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<v Speaker 2>so you want to be one of those brands that

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<v Speaker 2>are remembered. But internationally we see incredible growth potential, not

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<v Speaker 2>just for US but frankly Napa Valley, California as a whole.

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<v Speaker 2>So I think there's still a lot of upside potential

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<v Speaker 2>for the wine market as a whole.

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<v Speaker 1>It's got and I feel like, you know, we've talked

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<v Speaker 1>a lot about the luxury space, you know, LVMH and

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<v Speaker 1>so on and so forth, and whether it's Chinese buyers

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<v Speaker 1>or so on. And it's interesting when you talk about,

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<v Speaker 1>you know, selling overseas. I don't know how much you

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<v Speaker 1>can share with us, but in terms of US, I'm

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<v Speaker 1>assuming is your biggest market now, But is it the

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<v Speaker 1>growth rate? Is it overseas that you guys are really

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<v Speaker 1>looking forward to?

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<v Speaker 2>I think so. So we sell eighty percent of our

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<v Speaker 2>wine what we think of as we call it direct

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<v Speaker 2>to consumers, So people who sign up on our mailing

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<v Speaker 2>list on the website and then we offer them wine

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<v Speaker 2>during these campaigns. The other twenty percent goes to trade

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<v Speaker 2>partners in the US and around the world. Of the

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<v Speaker 2>twenty ten percent of that is US and the other

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<v Speaker 2>half is overseas and that and that is growing. I

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<v Speaker 2>think Asia and Europe continue to have more and more

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<v Speaker 2>interest in Napa Valley wines, and so we're focused on

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<v Speaker 2>a lot of markets within those two regions, Ben Wall, when.

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<v Speaker 1>You think about you know, it is a crowded space.

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<v Speaker 1>I walk into a wine star and sometimes I'm overwhelmed,

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<v Speaker 1>but I also kind of revel in it because it's

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<v Speaker 1>so nice to have so much choice and variety and

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<v Speaker 1>just new wineries coming out. How do you think about

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<v Speaker 1>how you want to, you know, kind of tweak the

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<v Speaker 1>brand or come out with new wines if you will.

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<v Speaker 3>Well, I think we try to grant brand awareness. I mean,

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<v Speaker 3>people get to get to North so we we are

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<v Speaker 3>able to brate production and hopefully to touch more and

0:11:24.920 --> 0:11:27.040
<v Speaker 3>more people. The bond that you're tasting right now was

0:11:27.080 --> 0:11:30.560
<v Speaker 3>originally Favorite Cases. I know it's ten thousand cases. So

0:11:30.600 --> 0:11:33.360
<v Speaker 3>our hope is to create awareness around the brand and

0:11:33.400 --> 0:11:38.040
<v Speaker 3>people to enjoy the fruit of our work and hopefully

0:11:38.160 --> 0:11:41.600
<v Speaker 3>we have the word of mouth will be a best

0:11:41.640 --> 0:11:44.400
<v Speaker 3>ambassador for us. It's people that will refer over of

0:11:44.440 --> 0:11:48.800
<v Speaker 3>wine to others, and we hope that like that we'll

0:11:48.840 --> 0:11:53.000
<v Speaker 3>be much more known and nationally and internationally. Well.

0:11:53.080 --> 0:11:54.920
<v Speaker 1>I have to say it's a pretty incredible wine. I

0:11:55.000 --> 0:11:57.920
<v Speaker 1>drink a fair amount of red wine. My name is Carolyn.

0:11:57.920 --> 0:12:00.959
<v Speaker 1>I drink a fair amount of red wine responsibly. It's

0:12:01.000 --> 0:12:03.640
<v Speaker 1>really incredible and so glad that we could spend some

0:12:03.720 --> 0:12:06.040
<v Speaker 1>time with you, and we appreciate being able to sample

0:12:06.080 --> 0:12:08.319
<v Speaker 1>what you guys are doing and really look forward to

0:12:08.360 --> 0:12:10.600
<v Speaker 1>hearing more and hope you never have a year like

0:12:10.640 --> 0:12:13.680
<v Speaker 1>twenty twenty where you guys are dealing with really the

0:12:13.679 --> 0:12:15.960
<v Speaker 1>severe impacts of climate change. Come back, let us know

0:12:16.000 --> 0:12:18.800
<v Speaker 1>how things are going. We'd love to kind of continue

0:12:18.800 --> 0:12:22.520
<v Speaker 1>the conversation. Have a great weekend. Scott Becker, owner Realm Sellers,

0:12:22.640 --> 0:12:25.560
<v Speaker 1>joining us along with the winemaker ben Wa Touquette. They

0:12:25.640 --> 0:12:27.560
<v Speaker 1>joined us as you could see for those watching on

0:12:27.600 --> 0:12:31.920
<v Speaker 1>YouTube and Bloomberg Originals the incredible fields behind them joining

0:12:32.000 --> 0:12:34.640
<v Speaker 1>us from Napa Valley Carol Master along with Madison Mills

0:12:34.679 --> 0:12:37.319
<v Speaker 1>and this is Bloomberg Radio. Cheers everybody,