Thank you Scott. Looking forward to comparing Farellas, Cranes, and To Kalons!
Scott, any chance the Fidelio will ever incorporate semillon and muscadelle? Realmās style of sauvblanc is so unique, that I can only imagine what adding some more dense/waxy tones would create. Thereās been a little discussion of this in prior posts, so thought Iād broach the subject. If thereās a winemaker that Iād like to see create a bdx blanc style, itās definitely Benoit.
Scott, any chance you can also provide some color into any new upcoming vineyard sources youāre working on? I know you all added Upper Range recently and have added some more of the Hartwell property. Iād love to hear more about other new sources and areas you may be looking to source from (to the extent you can share any info).
In particular, I recently heard the interview Benoit did with Wallyās where he mentioned you all may be looking into acquiring land in Burgundy or Bordeaux. That would certainly be exciting! Iād love to hear more about how you all might be thinking about expanding into new areas like that.
I got the 18 Bard and realized I never entered into CT. What was the release price this year ? Canāt rememberā¦
thanks
I believe it was $110, exclusive of tax and shipping.
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Agreed
Hi everybody, Iām back for part 2 on the upcoming Realm spring release. Iāve been working on my rain dance the last few days and, as I write this on Sunday afternoon, it looks like we should get a few inches of much-needed rain in the next several days. It still wonāt be enough but itās a start!
Thanks for the continued questions. I appreciate the dialogue and I certainly donāt want my participation here to otherwise dampen the back and forth between others. I find the feedback and insights gleaned from this forum to be valuable.
A few of you asked about pricing and I know thatās always a topic that comes up each time a winery releases a new vintage. As the Realm team knows, this is one of the hardest decisions we makeā¦and one to which I lose many sleepless nights. In addition to the pricing of the upcoming release, Iām also going to share our thought process here in the hopes of providing some context that is useful for your wine collecting journey.
Our current approach to pricing reflects an evolution of thought over the last several years. We distinguish between release and retail. The release price is available to members during the two-week period of the release. This is typically the best price you will find for the wines although the time frame is limited and itās dependent on allocations which can take years for a member to build. After the release, we move to retail pricing which is an attempt to be consistent across accounts, channels, markets, etc. We allocate most of the wine to releases but we do hold back some to share in various other ways ā to guests when they visit the estate, special offerings, restaurants (when they come back), retail accounts, etc. The price benchmark for each of these other channels is retail. Of course itās not an exact science and we have no control over what happens in the secondary market. Once we reopen the estate to guests, we especially want to have wine available for tasting and purchase. But we also need to respect and support our trade partners around the worldā¦so this is why itās important for us to use retail pricing outside of the release windows.
As a member or consumer, hereās how you might think about our approach to pricing. The releases are constrained by time and allocation, but they offer the best price. You can increasingly access our wines year-round (once we reopen hospitality, more retail presence, etc) but the price is typically a bit higher. This is especially important for The Bard where we are actively trying to build exposure for Realm by placing this wine around the world. If you arenāt allocated a bottle of Dr. Crane (yet!) during the release, you can always find a bottle on wine-searcher but you will typically have to pay more than the release price. On our new website, which we hope to launch later this spring, we are trying to do a better job listing places around the world where you can find our wines. This allows you to still buy a bottle outside of the release window by finding it at a restaurant or wine shop or auction house.
Our goal is to over-deliver on quality for every wine we makeā¦from The Bard ($110 last fall release) to The Absurd and everything in between. The fall release includes wines like The Tempest and The Bard with prices that are more approachable. In the case of The Bard, we consciously hold down pricing relative to where we think quality isā¦so that we continue to over-deliver. With all that written, hereās the latest thinking for our spring release pricing, listed in 750mL formats:
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Farella Estate - $175. I believe Coombsville in the 2020ās and 2030ās could have some of the hallmarks of Oakville in the 1980ās and 1990ās. What I mean is itās still up and coming and the level of investment and focus on improving quality could propel Napa Valley forward. This thesis was a huge part of the motivation behind our partnership with the Farella family. Our wine is priced on the higher end for the appellation as it stands today. But 2018 marks an important milestone for Realm and the Farella Vineyard as it becomes part of our estate program. I have every confidence to believe we are improving farming and thereby fruit quality and then wine quality.
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Houyi - $225. Whereas we are on the higher end in Coombsville, I think we are on the lower end of pricing on Pritchard Hill. Iām very impressed with the general level of quality coming from this area ā both from other producers in this vineyard as well as the neighbors. We donāt own this vineyard and I do think thereās a pricing distinction to make between sourcing fruit and farming it yourself.
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Beckstoffer Bourn - $200. We added this vineyard to the Realm portfolio with the belief that the potential of this site is every bit as good as Dr. Crane and To Kalon. But this is our first release as a wine in the Realm portfolio and I think thereās something to be said for proving its worth and value over time.
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Beckstoffer To Kalon - $250. No change in price from last few years. We added a few rows so volume is up slightly. I expect to hold this price for 2018 and 2019 vintages.
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Beckstoffer Dr. Crane - $300. This might be the most controversial increase from prior releases. And this might sound crazy but even at this price I think the wine is undervalued. Iām generally one to just put my head down, keep grinding, keep trying to get better, etc because I know we have a long way to go to fulfill our vision for what Realm can becomeā¦so I donāt say this lightly, but when it comes to our Beckstoffer Dr. Craneā¦since 2012, I would put this wine, or a vertical of vintages of this wine next to any other wine from any other producer in Napa Valley. The wine is simply that distinct, that powerfulā¦it carries all the hallmarks of what I consider the greatest wines in the world.
Pricing is complex. We can and should devote another forum to this topic but for now Iāll share a few other brief comments. Price and cost are related. Costs in Napa Valley have continued to escalate significantly in recent years. Itās not enough to compare the price of a bottle to what it costs to produce that bottleā¦because that doesnāt take into consideration the overall scale of investment required. I think itās very difficult today to make a new project economically viable at the high end.
Having written that, just because costs are high does not justify high prices. And too often in Napa Valley we are guilty of starting a new project with no track record and charging $200 or more per bottle. The burden is on us as winegrowers to build value and credibility and trust with consumers over time. I worry especially about people just getting into wine today when fine wine generally seems inaccessible ā this isnāt just Napa, look at Burgundy, the top names in Bordeaux, etc. I share all this knowing full well weāve contributed to the increase in prices and we need to be careful not to price ourselves out.
All of this is to say that we remain incredibly humbled by the support of many members on this forum. We try to think carefully about pricing over the long-term. This isnāt about economics today or tomorrow (although we absolutely need that to survive) but rather about charting a course for decades to come. We work hard every day to ensure the wines are worthy of membersā hard-earned dollars. I certainly understand and respect if some commentators on this thread disagree with my views on pricing. I am not deaf nor blind (nor immune) to the current environment in which we are releasing these wines. I know many lives and jobs have been impacted by Covid. We at Realm are also facing yet another crucible with the loss of the 2020 vintage. Itās a rare privilege for us to work with some of the greatest land on the planet to grow Cabernetā¦and to share our diligent efforts with members who appreciate the craft and relentless commitment to quality at the highest level.
Iāll work on part 3 ā allocation methodology ā later this week as well as respond to other questions popping up.
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John, your question about Semillon is a good one. Benoit and I are always exploring ideas to tinker with Fidelio and in fact we were just tasting the 2020 blend yesterday. The 18 vintage had a touch of Semillon in the blend but it was a onetime opportunity to get that fruit. We continue to look for a reliable Semillon source and we never rule out the possibility of working with other white aromatic varietals to give Fidelio a distinctive profile. With the completion of the most recent phase of construction, we finally have the space for our own bladder press which opens up many possibilities to experiment and fine tune the white wine program in the future.
David, yes we have some new vineyards and new wines coming with the 2018 and 2019 vintages. Given the loss of the 2020 vintage, we have elected to hold back all of the ānewā wines to release them in place of the 2020 vintage in fall 2022 and spring 2023. The most significant of these is Hartwell, which is the land/vineyard adjacent to our estate that we recently acquired. We purchased the winery parcel in 2015 and agreed to continue making wine for the Hartwell family from their two-acre vineyard at the hilltop. When we purchased the hilltop last year, it came with the barrels of 2018 and 2019 vintage which we had technically produced anyway by our team in our facility. Benoit was adamant about keeping the Hartwell blocks separate from the rest of the Moonracer blocks - there is a strong distinction between the terroir and the resulting wine. So, we will be releasing a 2018 and 2019 Hartwell wine (exact name TBD but we want to continue the legacy of the Hartwell family by honoring their name) in a few years.
You mentioned Upper Range and we are very excited about that vineyard as well. This is a long-term lease with the Bettinelli family who is also our farming partner for Moonracer, Hartwell and Farella. I suspect you will be hearing much more about Upper Range in the months and years to come. Itās an incredibly diverse set of vineyardsā¦our blocks are planted to Cabernet and Cabernet Franc. Itās still early for us to assess the ultimate personality and character of the vineyard. Eventually this will likely entail a single-vineyard wine.
Beyond that, we are always looking, talking, walking vineyards. We see a great opportunity to continue improving the level of precision in our farming so our focus remains on our vineyards in Stags Leap District and Coombsville. Thereās a balance to being creative, trying new thingsā¦and doubling down on our focus and execution with existing vineyards and winesā¦
ā¦and thatās a natural segue into your question about Benoitās interview with Wallyās. This gives you a glimpse into our partnership and why we work well together. Benoitās appetite and creativity is endless! We are both dreamers in a senseā¦he might even be a bigger dreamer than me. But thereās a practical aspect to our approach as well. We certainly talk and think about doing something in Bordeaux or Burgundy one dayā¦he and I both spend time cultivating relationships there and looking at various opportunities. But anything we do must be additive and done at the highest level. Thereās no rushā¦we are looking out over the next several decades to think about what Realm could one day become. In the meantime, we have plenty on our plate to keep us busy and we are extremely excited about the opportunity to raise the bar on the wines we are making today.
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Scott, thanks for addressing my question. I look forward to the upcoming release!
Thanks Scott for the insights.
Iāve been buying Dr. Crane since the initial 2012 vintage and have bought each year since then. Amazing wines.
No reason to stop my vertical, even with the price increase, especially with the 2018 vintage.
But $300 is getting up there (I dropped Shafer HSS when they got to around that price point), but I do think Realm Dr. Crane is a more distinctive/singular wine, and I do like it better. Plus, so many other offerings I like from Realm (Bard especially) that the price still seems justifiable to me (albeit in smaller quantities).
Two questions:
- What will be the pricing on Beckstoffer To Kalon Cab Franc?
- Any plans to offer the Cab Franc in 750 ml bottles at some time?
Tom
Hi Tom, thanks for your note and your feedback. We will be very conscious of price going forward. No changes to the Beckstoffer To Kalon Cab Franc for this year - still $900 for the 1.5L. We have discussed the possibility of bottling some in 750 mL formats but we would like to secure a little more of that fruit before we expand the bottling program.
Thanks for the answer Scott, and for all the transparency. It certainly sounds like you all have a lot of exciting things ahead. I canāt wait to see what it brings!
I saw the 16 Dr Crane online for 400+ so 300 doesnāt seem to bad. How much was the 16 at release? Iāve also never had realm wines but have heard they are fantastic!
It was $235.
To Kalon cab franc, $900 for a mag? Is that a record for a cab franc wine? Almost as much as The Absurd.
I love The Bard and The Tempest and Iām ready to go to the next level, but that seem to be several levels up.
Not quite Bryant came out with a 750 ml Cab Franc for 1500$. Thatās some crazy stuff.
-Zach
Thanks Scott
Looking forward to the release. My first Realm Dr. Crane was the 2005 at $85, ToKalon $95, Tempest $65. Miss those day! Barrel tasted with Juan at Boswell and the Crane at that moment became my favorite Realm.
I do think since Benoit has taken over the winemaking duties the wines have gone to a new level. Not a slight against Mike Hirby as those earlier versions were really nice, it took several years for the '05 Absurd($150) to come around and once it did it was amazing, wish I would have saved one.
2015 Tempest about a month ago was in its drinking window, with beautiful layers of fruit, with depth and seamless.
Chiming in as promised with part 3 ā allocations. We are sending out the Save the Date email tomorrow announcing the spring release will be open starting at 10AM PST on February 9.
The ways in which wineries market and sell their wines are as diverse as the wines themselves. A common approach for small, DTC-focused wineries is the first-come, first-served model. From the producerās perspective, itās the easiest to manage. This was the Realm model up until 2016. We placed bottle limits on certain wines in an effort to spread the wines around to as many folks as possible. We started doing two releases per year in 2012 and the offering window for those wines would sometimes run several months or longer. Everything changed with our 2016 Spring Release.
Some of you were on the list back then and Iām grateful for your longstanding support. We knew there would be strong demand for the wines that release so we tried to be thoughtful about how we spread the wines around. But the response was overwhelming. The wines sold out in minutes, the website was overloaded with traffic and essentially crashed. From a customer service perspective, it was a nightmare. We had a lot of long-time members who were used to placing their order days or weeks after the release opened. I remember a call from a doctor that day who was in surgery when the release opened and was shocked to find out after he finished that the wines were all gone. I know we disappointed a lot of folks that day. We received some very negative feedback ā some of it deserved, some of it notā¦but all of it was instructive for what came next. But we also received some heartfelt responses from people who were excited about the demand for the wines. We had several people call and tell us they were one of the lucky ones to get an order placed and they were willing to offer us back some of their purchased bottles if it would help meet the demand of others. Thereās a sense of community that comes from appreciating wine and it was on display that day. We literally pulled out every single bottle from our inventory and cellar to fill as many orders as we could for long-time members. To this day, our inventory of the 2013 vintage at Realm is minisculeā¦for some wines itās maybe 6 or 8 bottles left.
I share all of that as background so you understand why we moved to the system in place today. Our releases are open for about two weeks and the allocations are guaranteed, meaning those bottles are literally set aside for you. If a member hasnāt purchased in three years, their allocation is no longer guaranteed so we can free up those bottles for another member. Itās incredibly complex to try to predict behaviors ā how many people will buy, how much of each wine will they buy. But thatās what we have to do to strike the balance between ensuring we live up to the promise that every allocation is guaranteed while at the same time ensuring we still sell the targeted amount of bottles in a fair manner. We use a wish function to create the balancing effect. Some people want more than their allocation, some people want less of their allocation. The wish request is how we spread the wines around once the release closes.
In the beginning, allocations were based simply on tenure and purchase history. How much wine have you bought in the past, how long have you been on the listā¦those two factors combined to create allocation tiers or bands. That was a good start but it wasnāt personal enough. We wanted every single member to have their own personal allocation that was tailored to them. To do that, we had to create a pretty complex algorithm first in excel and now in a custom software built on the salesforce platform. We start with past purchase history of a member, looking at how many bottles of a particular wine have been purchased in the last two or three releases. We look at what was allocated vs what was purchased. If we allocated Houyi to a member for two years and he or she never purchased it, we assume that member isnāt interested in that wine and subsequent allocations of that wine will decline. Wish requests are also a factor. If that same member passed on the Houyi allocation but purchased the full allocation of Farella and wished for moreā¦in future releases we would try to allocate that member more Farella. Here we also have to introduce the variable of Mother Natureā¦to be able to increase allocations, we either need to have more volume from that vintage or remove that allocation from other members.
With me so far? Historical purchases by each label, wish requests, thatās simple enough. We also look at tenure. We genuinely want to support long-term members. If we only look at purchases, itās easy to just allocate all the wine to the people who spend the most. But Iāve said this often to our teamā¦we would much rather have a member who buys 3 bottles per year for four years than a member who buys 12 bottles in one year and never buys again. We of course appreciate every member and welcome every purchase. But we want to emphasize the relationship with a member that grows over time. From my perspective, longevity is important in fine wine ā itās as important with members as it is with vineyards. So we add a tenure factor that provides better access to wines over time, regardless of how significant the purchase history.
Recently, weāve added referrals as a factor in allocations. If a member is sending us other members, that shows a level of engagement with us that we want to acknowledge. Now comes the fun part. We also add in factors for momentum (buying relative to the rest of the list), release participation (consistency from year to year), engagement through events, and a few others. All of these are secondary to the core factors of purchase history, wish requests and tenure but they can influence allocations. These other factors can also influence wish granting which doesnāt always follow the same logic as allocations. For example, if we have one bottle of Dr. Crane left for wish granting, do we share that bottle with a member who already purchased some and wants moreā¦or do we share it with someone who hasnāt yet been able to buy a bottle of Dr. Crane? Itās complicated.
Each release carries its own set of dynamics based on the volume and demand of the wines. For the upcoming spring release, we are adding the twist of a new wine ā Beckstoffer Bourn ā so we need to figure out how to allocate that wine without much of a precedent. We are starting with people who previously purchased Kata to ensure there is continuity. If you bought Kata, you will be allocated Beckstoffer Bourn. We will have a little more To Kalon to spread around this release. However, if you are new to the spring release, meaning this is your first one, donāt expect to be allocated a bottle of To Kalon or Dr. Crane. Thereās just not enough of those wines to go around. Fidelio allocations will be a little tighter this year because we made less of that wine than in previous vintages.
In closing, itās worth mentioning this is both an art and a science. And both continue to evolve at Realm. Iām grateful to have the analytical and data tools to incorporate all these factors mentioned above into personalizing allocations. But donāt think for one second that it means this is just a numbers game. Wine is personalā¦we take the relationships we cultivate with members personally. We try to make exceptions for special requests. On more than one occasion Iāve seen a Realm team member take a bottle from their own personal allocation (each team member at Realm receives two bottles of every wine we make) to offer it to a member with a special request. Now please donāt take advantage of me sharing this! But I want you to hear it from me so you better understand the ethos behind Realm and how we approach our members. We have a passionate team of people that are the driving force behind the release. We arenāt perfect and we sometimes make mistakes. Call us, email us, text usā¦and we will do whatever we can to make it right. We always welcome feedback as an opportunity to learn and evolve. If you have ideas on how we can improve allocations, DM me or email me anytime. I want to hear those ideas.
If you take nothing else away from my long-winded post, I hope itās this. We try to be as thoughtful about the craft of how we share our wines with members as we are about the craft of growing and producing wine. If you look at your relationship with Realm through the course of many vintages, many releasesā¦over time we hope to tailor your allocations and your journey in a way thatās meaningful and personal to you. Thanks for reading!
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