Glory Days

I ended last night in conversation with a friend about modern business classics such as Den of Thieves, Liar's Parker, The Smartest Guys in the Room and A Random Walk. We were discussing the efficiency and inefficiency of financial markets. It got me thinking again about wine prices and my most recent "random walk" down the aisles of a wine store.

As I perused the selections available, a few bottles of Calera Pinot Noir, the single-vineyard stuff, caught my eye. $55 a bottle. If you have been into wine for a while, you'll remember the following. If you're new to wine, the story is as meaningful as ever.

Calera is an outstanding producer of California Pinot Noir. For a while in the mid-1990's, Calera was fairly cultish, tough to find, expensive vis-a-vis its peers at the time, but certainly of high quality. I dug out my notes on a seven-year old Calera from a wine dinner on February 3rd, 2001:

1994 Calera Pinot Noir, Selleck
Very good concentration of raspberries and cassis. Structured by nice, ripe tannins. Nice wine...etc, etc.

A fine showing by a seven-year old California Pinot Noir being that most are made in a more fashionable, drink-me-know fashion.

It was right around this time give or take a year or maybe a few months, that Josh Jensen of Calera came out with his now (in)famous newsletter of new releases wherein he explained that the he was rasing the price of Calera's single vineyard offering from $55 to $80 per bottle in order to keep his prices even with other top Pinot Noirs from California. Everyone in the wine business walked around with the same type of buzz that many of us had Tuesday morning as we saw months of growth in our 401(k)'s vanish (okay, perhaps I'm being a bit melodramatic, but you get the point). Not long thereafter, although quality has never waned, Calera dropped off the radar quite a bit.

So, during my recent "random walk" it was fitting that I saw Calera Selleck vineyard waiting for me on the shelf. After a period of time where Calera Pinot Noir was overpriced, the Calera stable has experienced a "market correction" and has returned to $55 dollars a bottle, right back where it was about seven years ago. I had visions of Jim Cramer in my head ("Buy!Buy!Buy!") and picked up a bottle to enjoy with a steak that evening. Admittedly, I enjoyed every last sip.

[Bruce Springsteen's Glory Days plays in the background. Fade.]