 Rubbishing the Press Reports earlier this month saying that the Napa-based Chateau Montelena had terminated the sale agreement as the purchaser had been unable to meet its financial obligations, he said with hurt and anguish,' They did not even inform us about the so-called cancellation. We read about it only in the Press. That was not fair or proper.'
While Prats was hesitant to go into the details of the deal estimated to be worth over $110m by the industry, he said the agreement was signed on 27th July this year and the sale was to be completed by October. 'It had a clause regarding the economic conditions in the market and allowed for renegotiating the package in case of a major change in the scenario. Since there has been a significant downturn in the economy we suggested that the package be discussed.'
'Does it imply a price reduction?' I asked. 'Not necessarily. We wanted to look at the whole financial package. Perhaps it could be delay in payments or perhaps extended instalments. I cannot disclose the details to you, obviously,' he said.
Jean-Guillaume was talking exclusively to delWine at the Tasting of Cos d'Estournal wines organised by Brindco at Hotel Shangri-la yesterday.
So what is the course of action for them now? 'We are looking for a mediator who can legally help us sort out the wrangle. Once cannot be sure of the outcome at this point but we are very keen to close the deal,' he said with confidence.
The agreement has been made by his boss Michel Reybier through his company Reybier Investments which also owns the Second Growth Chateau from St. Estephe. The Super-second Chateau is ranked so high by wine connoisseurs that it was 'upgraded to the First Growth' a few years ago at a Fools Day news broadcast all over the internet.
Chateau Montelena was founded in 1882. It made its name when it won the white wine section of the 'Judgment of Paris' wine competition in 1976 between California and French wines by Steven Spurrier. Chateau Montelena '73 Chardonnay was selected as the top white wine by the French judges against top Burgundy Estates.
'Was that the reason Cos wanted to buy them out?' I asked him in jest. 'Oh, no,' he said laughing. You don't make such decisions in hurry or such an impulse. We believe there is a lot of synergism between good Napa and Bordeaux and we want to capitalise on that.'
Talking about the quality of Napa wines, Prats conceded that it had in fact become superior to Bordeaux in the seventies and eighties due to technological advancements. But now Bordeaux is equally good, if not better, he stressed.
Bo Barrett, son of Jim Barrett, who revived Montelena's fortunes in the 1970s had reportedly said the sale was prompted by his parents' age and because he could not afford to buy out the shares of his brothers and sisters in the business, without assigning any specific reasons for the termination of the agreement.
Tasting of Cos
Though Cos d'Estournal is rated a Second Growth in the 1855 classification, its wines are frequently rated higher than the First Growths by Robert Parker and other wine critics. The pricing structure in Bordeaux is such that the Second Growths sell for a third or even a fourth the price of the First Growths, offering a great value. Add to that the excellent second wine of such Super-Second Growths in good vintages and you have a fantastic value in your glass. This was quite apparent in the tasting.
Les Pagodes de Cos 2004, the second wine was still austere, though showed a good structure. It will age to peak in perhaps 2-3 years and will be good to drink till at least 2016-18. But it needs food with plenty of red meat to match the tannins.
Cos d'Estournal 2002 on the other hand, had ripe and silky tannins. A harmonious wine with plenty of chocolate, coco and a bit of vanilla taste it was full on the palate and the spices lingered on along with the ripe red berry fruits on the nose and the end.
But the real surprise was La Goulée 2005, a wine made from 80% Cabernet and 20% Merlot grown in vineyards on the North East corner of Medoc, barely 10 kms. from the Atlantic Ocean on the west and Gironde river on the east.' La Goulée is our answer to the New World,' said Prats while sipping the $35 red wine which was poured to begin the tasting. Produced in modern style it was quite fresh and vibrant on the palate, very fruit forward and yet not losing out on the elegance.
For an earlier article on the Deal visit
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