WEBVTT - J. Lohr Vineyards Leading the Way 0:00:00.120 --> 0:00:03.400 You're listening to Bloomberg Business Week with Carol Messer and 0:00:03.440 --> 0:00:05.840 Tim Steneveek on Bloomberg Radio. 0:00:06.200 --> 0:00:09.680 It is already well passed five pm somewhere, five pm here, 0:00:09.720 --> 0:00:11.880 and so it seems like the first perfect time to 0:00:12.000 --> 0:00:14.400 talk about the business is wine listen. 0:00:14.600 --> 0:00:16.520 So it was five o'clock somewhere right, all right, We've 0:00:16.520 --> 0:00:18.079 got a great voice on it. Someone who has spent 0:00:18.239 --> 0:00:20.280 some of her growing up years. Sounds like a lot 0:00:20.320 --> 0:00:23.360 of them wandering among vineyards and sellers thanks to her dad, 0:00:23.440 --> 0:00:26.920 Jerry Lore, a real estate developer, agriculturist and wine grower 0:00:27.120 --> 0:00:29.160 with us as Cynthia Lord, the co owner and chief 0:00:29.160 --> 0:00:32.879 brand officer of Jaylaur Vineyards and Wines, joining us, by 0:00:32.920 --> 0:00:35.120 the way, one of Wine and Spirits Magazine's top one 0:00:35.200 --> 0:00:37.800 hundred wineries for the second year in a row, and 0:00:37.840 --> 0:00:41.199 she's joining us on zoom in San Rafael, California. Cynthia 0:00:41.280 --> 0:00:42.960 is so nice to have you here with Simone and 0:00:43.000 --> 0:00:45.000 me on a Bloomberg Business Week. 0:00:45.040 --> 0:00:48.879 How are you? I'm great, Thank you Carol and Simone. 0:00:48.880 --> 0:00:51.320 It's such a pleasure to be with you and I agree. 0:00:51.320 --> 0:00:54.680 It's five o'clock somewhere, so great time to be talking 0:00:54.720 --> 0:00:55.320 about wine. 0:00:55.440 --> 0:00:58.200 Well, before we get to a couple of things, because 0:00:58.200 --> 0:00:59.880 you guys have a lot going on, tell us little 0:00:59.880 --> 0:01:01.920 bit about the history of the vineyard. Your dad very 0:01:02.000 --> 0:01:05.920 much a pioneer in developing California's wine world. Tell us 0:01:05.920 --> 0:01:08.600 about the family business growing up within it, and you know, 0:01:08.640 --> 0:01:11.080 we take it for granted today, but it wasn't always 0:01:11.080 --> 0:01:11.440 that way. 0:01:12.400 --> 0:01:14.560 Oh, absolutely, what a great question. 0:01:14.760 --> 0:01:14.959 You know. 0:01:15.000 --> 0:01:17.920 My father grew up in South Dakota in a farming family, 0:01:18.240 --> 0:01:20.640 and he was always very much a man of the soil, 0:01:20.840 --> 0:01:26.360 out in the out farming and with his family tending 0:01:26.400 --> 0:01:31.440 to wheat barley Rye Trita Cayley, which is a little 0:01:31.520 --> 0:01:35.160 known soil amendment. So when he came out to California 0:01:35.640 --> 0:01:39.119 in the late fifties to pursue his PhD in civil 0:01:39.120 --> 0:01:44.119 engineering from Stanford University. After he created his first building 0:01:44.120 --> 0:01:47.280 and development business in the South Bay of California kind 0:01:47.280 --> 0:01:50.280 of San Jose area where our first winery is located, 0:01:50.720 --> 0:01:54.120 he and his building and development partner found they had 0:01:54.120 --> 0:01:57.760 a mutual love of wine, so they started traveling to 0:01:57.840 --> 0:02:02.520 California's central coast. First it was Monterey County's Arroyo Seco 0:02:03.120 --> 0:02:07.360 right near Carmel and in Monterey County and put their 0:02:07.400 --> 0:02:11.400 first boots in the ground, planting two hundred and ninety 0:02:11.480 --> 0:02:16.280 three acres across eleven different varieties, and then later found 0:02:16.320 --> 0:02:21.360 after some trial that cabernet and chardonnay did not grow 0:02:21.400 --> 0:02:25.280 well side by side in that cool climate region, So 0:02:25.360 --> 0:02:29.440 that took him an hour south to Passerobyls, where since 0:02:29.560 --> 0:02:32.519 nineteen eighty six we've been growing the bulk of our 0:02:33.000 --> 0:02:36.560 red wine in Bordeaux portfolio. So we actually started out 0:02:36.919 --> 0:02:43.040 in Monterey County in the started planting in the late sixties, 0:02:43.160 --> 0:02:49.520 early seventies, and Passerobyls in nineteen eighty six, and we'll 0:02:49.560 --> 0:02:55.320 celebrate fifty years of our heritage wines in twenty twenty four. 0:02:56.000 --> 0:02:59.440 So you have now over I believe, two thousand acres 0:03:00.080 --> 0:03:04.440 you're farming. Talk to me about some of the key 0:03:04.520 --> 0:03:08.240 issues that you follow every day as you're running now 0:03:08.280 --> 0:03:10.720 a quite large wine business. 0:03:11.600 --> 0:03:18.720 Absolutely so across our three distinct appellations. Actually, for if 0:03:18.720 --> 0:03:22.560 you count Santa Lucia Highlands, we also grow on a 0:03:22.600 --> 0:03:27.880 small parcel in Saint Helena in Napa Valley. But all told, 0:03:28.440 --> 0:03:35.200 our four thousand acres are certified California Sustainable, as are 0:03:35.360 --> 0:03:40.280 our three wineries and by years and twenty seven of 0:03:40.320 --> 0:03:44.960 our approximately forty one wines. So for my brothers and 0:03:45.040 --> 0:03:48.120 my father and myself, we are truly family owned and 0:03:48.240 --> 0:03:51.760 operated hands on day in and day out. My brothers 0:03:51.800 --> 0:03:55.560 and I all hold executive roles for the last twenty 0:03:55.640 --> 0:03:59.480 two years in our business, So we really embrace the 0:03:59.600 --> 0:04:02.320 vision that my father set forth so many years ago, 0:04:02.360 --> 0:04:06.920 and that was to truly be a sustainable enterprise. So 0:04:07.080 --> 0:04:14.400 everything we do is always with an eye toward resource conservation, optimization, innovation. 0:04:15.040 --> 0:04:19.000 Since they're always ensuring that we are doing what we 0:04:19.200 --> 0:04:23.040 can to influence the quality of our wines from vineyard 0:04:23.080 --> 0:04:23.839 to bottle. 0:04:23.600 --> 0:04:25.640 And we're going to get to sample and check out 0:04:25.640 --> 0:04:27.479 the quality of your wines, which which we'll do in 0:04:27.520 --> 0:04:29.000 a moment. But I want you know when you talk 0:04:29.040 --> 0:04:33.200 about sustainability, we've had a lot of conversations over the 0:04:33.279 --> 0:04:37.760 years with vineyards, certainly in the California area, and just 0:04:37.960 --> 0:04:40.480 the challenges that are coming at you, whether it's because 0:04:40.480 --> 0:04:44.600 of climate change, it gets trickier and trickier. What have 0:04:44.680 --> 0:04:46.839 the last couple of years been like for you guys? 0:04:47.720 --> 0:04:54.800 Oh, my goodness, full throttle into conservation efforts. So everything 0:04:54.920 --> 0:05:00.880 from our wastewater treatment program, which reduces the amount of 0:05:01.160 --> 0:05:05.320 water required to produce a gallon of wine to almost 0:05:05.400 --> 0:05:10.200 under two gallons, to practicing deficit irrigation, so we'll often 0:05:10.240 --> 0:05:14.520 mimic rain events and we'll irrigate continually in a vineyard 0:05:14.560 --> 0:05:16.839 for a period of twenty four hours and then not 0:05:16.960 --> 0:05:23.479 irrigate for two more months, or practices such as roll 0:05:23.560 --> 0:05:27.200 up doors, our solar tracking array, which powers more than 0:05:27.240 --> 0:05:31.720 eighty five percent of our passerables facility. But now, as 0:05:31.760 --> 0:05:36.360 you both know, the new area that's of most concern 0:05:36.720 --> 0:05:41.120 is social equity. It's not just an environmental stewardship or 0:05:41.200 --> 0:05:44.719 financial resource. It's really about social equity. How do you 0:05:44.760 --> 0:05:47.640 care for your communities, How do you care for your people? 0:05:47.680 --> 0:05:50.120 How do you ensure that you're doing what you can 0:05:50.240 --> 0:05:56.279 to create a thriving and prosperous place where your employees live, work, 0:05:56.320 --> 0:06:00.960 in play. So we're really focused on long term solutions 0:06:01.000 --> 0:06:05.080 for California's water crisis as well as just looking at 0:06:05.160 --> 0:06:09.280 how can we curtail greenhouse gas emissions in every facet 0:06:09.360 --> 0:06:10.080 of our business. 0:06:10.240 --> 0:06:12.200 Can you get into the nitty gritty though, like what 0:06:12.400 --> 0:06:18.120 has become more difficult for you the most, the most, 0:06:18.120 --> 0:06:21.039 the thing that's changed the most, whether it's you know, 0:06:21.160 --> 0:06:25.240 climate wise or water or heat, what has had the 0:06:25.240 --> 0:06:26.480 biggest impact. 0:06:27.520 --> 0:06:31.360 I would say for us, it truly is water, and 0:06:31.520 --> 0:06:37.200 here in California, tending to California's water crisis and being 0:06:37.200 --> 0:06:40.280 at the forefront of really finding some of those longer 0:06:40.360 --> 0:06:46.560 term solutions, whether it is blending recycled waste water with 0:06:47.360 --> 0:06:53.360 nearby Lake Nacimiento to ensure that wells and passerobles will 0:06:53.400 --> 0:06:57.280 have ample supply. It's really about finding those longer term 0:06:57.320 --> 0:07:02.520 solutions because honestly, climate chain will continue to throw many 0:07:02.560 --> 0:07:05.760 weather events at us. We have to be prepared, but 0:07:05.839 --> 0:07:09.160 we also have to take the long tail toward convening 0:07:09.560 --> 0:07:14.160 leaders across all facets of government and city council to 0:07:14.200 --> 0:07:17.000 brainstorm these long term solutions. So I'd say that's what 0:07:17.040 --> 0:07:18.200 we're most focused on. 0:07:18.440 --> 0:07:24.200 The business right now. Tell us about costs, wages, supply chains, 0:07:24.360 --> 0:07:25.160 How is all of that? 0:07:26.840 --> 0:07:31.240 Yes, So the business for us is healthy. That comes 0:07:31.280 --> 0:07:35.080 from having the perspective of being a vertically integrated business. 0:07:35.320 --> 0:07:39.360 So we've had long term arrangements with suppliers or our 0:07:39.480 --> 0:07:45.080 leadership team. Many have been with Jaylare for over fifteen 0:07:45.240 --> 0:07:49.800 to twenty years. That includes our winemakers. But certainly we're 0:07:49.840 --> 0:07:55.119 seeing escalation of costs across in the entire supply chain. 0:07:55.560 --> 0:07:59.480 But for jay Lore because we control facets of our 0:07:59.560 --> 0:08:05.960 business being a vertically integrated company, so growing and producing 0:08:06.000 --> 0:08:10.520 our own wines really makes a difference to consumers at 0:08:10.560 --> 0:08:13.080 the end of the day. And so that's where we 0:08:13.120 --> 0:08:16.920 sit differently from many in our competitive set is being 0:08:16.960 --> 0:08:21.400 able to take ownership of the costs our ability to 0:08:21.480 --> 0:08:24.280 keep them down so that that don't those costs do 0:08:24.320 --> 0:08:25.960 not translate to the consumer. 0:08:27.040 --> 0:08:29.720 Cynthia laure co owner and chief friend Officer of Jlare 0:08:29.880 --> 0:08:33.480 Vineyards and Wines on Zoom and San Rafael, California and 0:08:33.520 --> 0:08:36.160 Sonia gave us the great backstory and history of your 0:08:36.160 --> 0:08:39.520 family owned vineyard. You also shared with us. Thank you 0:08:39.559 --> 0:08:42.000 so much. Some wine that I'm going to open up. 0:08:42.679 --> 0:08:46.560 I believe it is a cab Cabernet sauvignon. Tell us 0:08:46.559 --> 0:08:48.360 a little bit about the wines that you guys make 0:08:48.400 --> 0:08:49.880 in this wine that I'm going to open up. We're 0:08:49.880 --> 0:08:51.599 going to sample. I'm going to talk more about. 0:08:51.320 --> 0:08:54.840 It perfect well. I'll need to know is it the 0:08:54.920 --> 0:08:57.679 hilltop or the signature Cabernet sauvignon. 0:08:58.400 --> 0:09:00.400 I believe it's the hill It's the hilltop. 0:09:00.480 --> 0:09:06.199 Yes, it is, okay, terrific. So j lor Hilltop Cabinet 0:09:06.240 --> 0:09:11.440 Sauvignon is a wine that we have been producing since 0:09:11.679 --> 0:09:15.160 nineteen ninety eight. It's ner j lor Ooh I heard that. 0:09:15.360 --> 0:09:17.520 I popped it, and I'm actually gonna pour it too, 0:09:17.640 --> 0:09:19.439 So you're gonna hear that in the background. 0:09:19.040 --> 0:09:24.000 Because oh, this is live because it's not quite my 0:09:24.200 --> 0:09:27.959 cocktail hour here in California, but five o'clock, I'm certainly 0:09:28.000 --> 0:09:32.160 with you, with you in spirit. So I'm actually so 0:09:32.280 --> 0:09:35.079 happy that you're drinking this particular wine right now because 0:09:35.120 --> 0:09:38.640 this is absolutely one of my favorites in our portfolio. 0:09:38.640 --> 0:09:41.960 And I'm not just just saying that. So since nineteen 0:09:42.080 --> 0:09:45.600 ninety eight, and this wine, like so many of our 0:09:45.760 --> 0:09:48.800 small lot production wines in our Jaylar Vineyard series Tier, 0:09:49.280 --> 0:09:53.000 really exemplifies a deep sense of place. So there actually 0:09:53.080 --> 0:09:58.880 is a hilltop vineyard with panoramic views overlooking all of Passerovals. 0:09:59.360 --> 0:10:02.960 And what may this wine so delicious and so unique 0:10:03.520 --> 0:10:09.800 is my father's fanatical precision around selecting sites that are 0:10:09.800 --> 0:10:13.280 going to bring about the best varietal characteristics, whether it's 0:10:13.400 --> 0:10:20.360 through soil profile or the aspects of the growing region 0:10:20.360 --> 0:10:23.080 that have to do with how cool the climate is, 0:10:23.480 --> 0:10:28.840 or whether it's south facing slopes or dappled sunlight coming 0:10:28.880 --> 0:10:33.280 across the vine. So it's really about site specific selections. 0:10:33.480 --> 0:10:36.960 And we at Jlore are fortunate to grow in about 0:10:37.280 --> 0:10:42.320 five of the eleven sub appellations. That essentially means that 0:10:42.320 --> 0:10:47.360 there are different microclimates that elicit these nuanced flavors that 0:10:47.559 --> 0:10:53.320 all contribute to just this one really supple expressive, bold, 0:10:53.559 --> 0:10:57.959 but super delicious, not well Cynthia profile at all. 0:10:58.000 --> 0:10:59.920 But I have to say Simone and I both have 0:11:00.000 --> 0:11:02.280 sampled a little bit, and I'm a fan of cabs. 0:11:03.040 --> 0:11:06.040 It's one of my favorite to drink. This is a 0:11:06.080 --> 0:11:07.520 real smooth quality to it. 0:11:08.080 --> 0:11:12.280 Mm hmmm mm hmm. And that's by design because our 0:11:12.880 --> 0:11:18.280 tannin profile and our red wines follows this winemaker philosophy. 0:11:18.280 --> 0:11:21.640 Our VP wine making Steve Peck says we are soft, 0:11:22.360 --> 0:11:26.600 dense and never green. So that applies to our our tannins, 0:11:26.640 --> 0:11:29.959 not our personalities, but our tannins. And so what that 0:11:30.000 --> 0:11:33.760 means is you get these really refined berry flavors in 0:11:33.800 --> 0:11:39.680 that smooth, supple structure, but also to growing what we grow. 0:11:39.760 --> 0:11:43.600 So this is ninety five percent Cabinet Sagnon, three percent 0:11:43.640 --> 0:11:46.760 Pati Verdo, one percent mal back, and one percent Cabinet 0:11:46.800 --> 0:11:49.560 franc We have the ability to blend in what we 0:11:49.640 --> 0:11:55.720 call a spice rack of varieties to really land on 0:11:56.040 --> 0:11:57.800 just the perfect flavor profile. 0:11:57.960 --> 0:12:00.800 It's really makes us wonder about like kind of consumer 0:12:00.840 --> 0:12:03.080 trends in general, right, Yeah, like what. 0:12:03.040 --> 0:12:05.839 Do consumers want and how does that change how you're 0:12:05.840 --> 0:12:06.760 mixing your wine. 0:12:07.720 --> 0:12:11.679 Absolutely, so some out there may say that consumers are 0:12:11.720 --> 0:12:17.640 gravitating toward more of a sweet flavor profile. Well, given 0:12:17.679 --> 0:12:21.080 that we are a vineyard driven company, given that we 0:12:21.120 --> 0:12:23.520 are farmers and agriculturists, at the end of the day, 0:12:23.720 --> 0:12:26.960 we're always looking at what do the vineyards give us, 0:12:27.040 --> 0:12:30.400 and then we craft our wines around what the vineyards 0:12:30.400 --> 0:12:33.439 give us. So at the end of the day, for us, 0:12:33.480 --> 0:12:38.560 it's all about authenticity. It's about accessibility, it's about being 0:12:38.679 --> 0:12:43.600 available and conscientious not only for what our consumers might 0:12:43.760 --> 0:12:48.000 like in terms of fine wine or everyday occasion wines, 0:12:48.200 --> 0:12:52.360 but a flavor profile that is versatile, that's food friendly, 0:12:52.679 --> 0:12:54.960 that's consistent well, and it's pleasing. 0:12:55.120 --> 0:12:57.600 It also sounds like we've seen a trend of you know, 0:12:57.720 --> 0:12:59.679 wines don't need to be fussy, wine don't need to 0:12:59.720 --> 0:13:03.360 be sotly. I feel like there's been this wonderful explosion. 0:13:04.040 --> 0:13:08.080 We recently talked about a story about Darden restaurants and 0:13:08.120 --> 0:13:11.760 they talked about how even their wealthy consumers were trading 0:13:11.840 --> 0:13:14.440 down a little bit when it came to their wine 0:13:14.520 --> 0:13:17.320 choices when they came in the restaurant. Give me an 0:13:17.360 --> 0:13:22.319 idea this economic environment, there's some uncertainty price point and 0:13:22.400 --> 0:13:24.160 are you seeing any of that? Are you hearing that 0:13:24.200 --> 0:13:25.839 from any of your customers? 0:13:26.920 --> 0:13:30.760 We certainly are hearing some of that. You know, we're 0:13:30.800 --> 0:13:34.400 in uncertain times right now economically, and I both know 0:13:34.480 --> 0:13:38.239 that you know so much about economics, try your backgrounds, 0:13:38.280 --> 0:13:41.160 and so I so appreciate that. But I think the 0:13:41.200 --> 0:13:45.280 beauty of being a family owned winery like jay Lore 0:13:45.480 --> 0:13:49.960 is that we have been crafting wines in seven distinct 0:13:50.040 --> 0:13:53.840 tiers now for many, many years. So for those who 0:13:53.920 --> 0:13:57.160 wish to trade up for a special occasion, Jylor Vineyard 0:13:57.240 --> 0:13:59.720 Series and above is perfect for that or if you're 0:13:59.760 --> 0:14:03.160 going to your friend's house for Tuesday night taco or 0:14:03.200 --> 0:14:06.160 Wednesday night pizza, regardless of what it is, we have 0:14:06.200 --> 0:14:10.199 a wine for that particular occasion. So whether it's the 0:14:10.840 --> 0:14:14.600 fifteen to nineteen dollars price point at retail and you're 0:14:14.640 --> 0:14:16.680 just looking to bring a delicious bottle of wine to 0:14:16.720 --> 0:14:19.200 your friends, or you want to upscale a little bit, 0:14:19.280 --> 0:14:22.160 we have that opportunity as well. So it's a little 0:14:22.160 --> 0:14:25.880 early to tell where consumer preferences lie, but just as 0:14:25.960 --> 0:14:28.720 during the pandemic, we're at that sweet spot and we're 0:14:28.760 --> 0:14:31.960 blessed for that interesting and it all comes back down 0:14:32.040 --> 0:14:35.720 to economies of scale, given that we are that vertically 0:14:36.040 --> 0:14:37.160 integrated at price. 0:14:37.280 --> 0:14:39.400 Hey, before we go, we've got about a minute left 0:14:39.400 --> 0:14:41.600 here leading the way, tell us just quickly about this. 0:14:41.640 --> 0:14:44.720 It's a contest that's underway and it is until the 0:14:44.800 --> 0:14:46.040 end of October. 0:14:46.320 --> 0:14:49.160 Absolutely, so it's all about the twus in this one. 0:14:49.320 --> 0:14:55.080 So we're talking round trip for two nights, five hundred 0:14:55.080 --> 0:14:59.440 dollars gift card in beautiful Passerobles And if you ladies 0:14:59.480 --> 0:15:03.520 have heard the buzz about the area, it is so 0:15:04.200 --> 0:15:09.840 replete with incredible wines, personalities, Vintnors and just all these 0:15:10.720 --> 0:15:14.600 fantastic places to dine. We're so excited to share some 0:15:14.640 --> 0:15:17.200 of our Passer Rebels excitement and our wines and our 0:15:17.280 --> 0:15:20.600 day Passerobels Wine Center with those lucky two winners. 0:15:20.760 --> 0:15:23.000 Well, it's so funny knowing you were coming in and 0:15:23.000 --> 0:15:24.720 we were all prepping in the newsroom and you know, 0:15:24.800 --> 0:15:27.720 everybody's talking about who's been to California Wine Country because 0:15:27.760 --> 0:15:30.840 it really is something to experience. Cynthia, first of all, 0:15:31.160 --> 0:15:35.200 thank you for letting us experience a wine from your vineyard. 0:15:35.200 --> 0:15:37.560 We so appreciate it and look forward to checking back 0:15:37.560 --> 0:15:40.040 in the future on how things are going. Cynthia Laura 0:15:40.080 --> 0:15:43.000 co owner and chief brand Officer Jaylare Vineyards and Wines 0:15:43.040 --> 0:15:46.040 on Zoom in San Rafael, California. 0:15:46.400 --> 0:15:48.400 I'm glad we're able to close out the day with 0:15:48.480 --> 0:15:48.960 the glass. 0:15:49.280 --> 0:15:52.320 We're not done yet, and it's true. 0:15:52.040 --> 0:15:54.000 And there's more coming up as well. 0:15:55.160 --> 0:15:57.880 Anyways, our thanks, but we're getting there. Everybody the weekend. 0:15:58.040 --> 0:16:00.960 Just around the corner, Carol Masterson and foxmen and this 0:16:01.280 --> 0:16:02.160 is Blueberg Radio 0:16:04.400 --> 0:16:04.720 MHM.