Napa Valley: From California's North Coast to the world's top fine wine
The Napa Valley is considered the epitome of American viticulture and is known for high-quality wines, which have been among the best in the world since the 1960s. These include, for example, the legendary “Opus One” by Rothschild Mondavi. Find out what special features characterize the Californian wine-growing region and why the iconic Cabernets, Chardonnays and Pinots are equally suitable for fine wine lovers and investors.
Napa Valley: Fertile valley with historic roots
The name “Napa” goes back to the Indian language and means “abundance.” Native people recognized the benefits of fertile valley soil early on, but it wasn't until 1839 that George Calvert Yount, founder of the city of Yountville, planted the first vines in the Napa Valley. In the 1860s and 1870s, many Europeans such as Jacob Beringer, Charles Krug and Jacob Schramm came to Napa Valley. The wine pioneer Charles Krug founded the St. Helena winery in 1861, which is still known today under the name Charles Krug Winery exists. By 1890, there were already more than 140 wineries in the Napa Valley. But the phylloxera plague of 1897 and the prohibition as a result of the First World War brought viticulture to an almost complete standstill.
It was only after the Second World War that the economic miracle led to the renaissance of viticulture in the Napa Valley, which received the accolade in 1976: As part of a blind tasting, prominent, mostly French jurors declared both white and red wines from Napa Valley to be the best wines, and expelled legendary Frenchmen to the places. This historic event remained in the memory of wine connoisseurs under the name “Judgment of Paris” and caused an enormous boost of prestige for Napa Valley grape juices. Today, iconic wines such as Schrader Cellars, Harlan Estate, Screaming Eagle, Opus One, Dominus and others traded at three to four-digit prices per bottle and are therefore also ideal for fine wine investments.
Geographical and geological features as a guarantee of quality
Napa Valley is a wine region and tourist magnet at the same time. The proximity to San Francisco and the numerous well-known wineries are ideal for day trips including wine tasting and tasting.
- Location and cultivated area
The valley, which is only about 50 kilometers long, is in 16 subregions (American Viticultural Areas) subdivided. Some of these so-called “AVA's”, such as Los Carneros, Howell Mountain, Oakville, Rutherford or Stags Leap District, are considered particularly prestigious. Individual layers such as Inglenook or Beckstoffer, which produce high-quality, valuable wines accordingly.
The valley, which runs parallel to the coastline and is open to San Pablo Bay in the south, also has various climate zones, which are extremely beneficial for diversified wine production. The closer a growing area is to the coast, the cooler the climate is. In southern San Pablo Bay, the area of influence of the Pacific, it is about half a degree cooler than in the north of the valley (Oakville, Rutherford, St. Helena, Calistoga). Grapes that ripen at low altitudes under the influence of morning coastal fog produce elegant wines. In the sunnier hills, on the other hand, more concentrated crus are produced.
- soil condition
In addition to a varied climate, the Napa Valley also has a variety of geological soil formations. In the valleys, there are heavy clay soils; on the slopes, the clay soils are more heavily interspersed with pebbles. There is also alluvial land in the valley floor and volcanic rock on the flanks of the valley. As a result of the high variance of soils, there is also no “Napa Valley wine”, but numerous, different grape varieties and styles.
- Grape varieties and production volume
round 600 wineries Napa Valley produces around 90 million liters of wine annually. The best wines from Napa Valley are made from Cabernet Sauvignon, Chardonnay and Zinfandel. Elegant Chardonnays and Pinots come primarily from the cooler south, fully concentrated Cabernets and Bordeaux blends from the warm north of the valley.
The most important grape in Napa Valley is Cabernet Sauvignon. It accounts for around 40 percent of the harvest and produces 60 percent of the yield. But Chardonnay, Zinfandel, Merlot and Sauvignon Blanc also produce excellent wines. In addition, other mostly originally French vines such as Cabernet Franc, Malbec or Petit Verdot are cultivated.
Overall, only four to five percent of all Californian wines are produced in Napa Valley. However, they account for 30 percent of sales — a clear indication of their high quality and intrinsic value.
“Napa style”: exceptional wines with format
Despite the excellent, varied environmental conditions, the philosophy of Napa Valley winegrowers is not terroir-oriented but rather style-oriented. The winemakers do not try to reflect the soil conditions. Instead, they want to grow grapes in different terroirs in such a way that they achieve the desired taste and quality results. This “Napa style”, which is described as dense and complex, varies from year to year due to the different weather conditions. That is why no year is the same as the other.
The valley has produced many high-priced, iconic wines from large and small estates. These include legendary drops from Opus One, Dominus or Inglenook:
Opus One Estate was founded by two legendary winemakers, Californian Robert Mondavi and Baron Philippe de Rothschild. They were convinced that the Californian terroir and the climatic conditions in the Napa Valley made it possible to press a wine that was on par with Bordeaux. With great success: In 1979, Rothschild & Mondavi presented the first volume of Opus One — which is now traded as a luxurious Californian red wine with cult status.
Dominus Estate was founded in 1983 by Christian Moueix in Yountville on the Napanook Vineyard. The 44,000 square meter estate has a rock structure that serves as a thermoregulation unit for the entire building. Dominus' wines are among America's iconic wines and certainly need not shy away from comparison with great Bordeaux wines. The renowned wine critic Robert Parker even gave the 2013 Dominus a full 100 points and commented on his tasting with the words: “In my opinion, 2013 is one of the most profound wines that Christian Moueix has made so far in his rather brilliant winemaking history, both in France and in the Napa Valley.”
The legendary winery looks back on a turbulent history and has been revived and restored in recent decades by director Francis Ford Coppola. Today, it shines as a museum with an attached winery, whose Rubicon is a highly regarded wine.
The 1941 Inglenook Cabernet was rated 100 points by Wine Spectator in 1990, described as “one of the top wines of the century” and in 2011 at Christie's auctioned off for 11,400 dollars.
Californian wines for enthusiasts and investors
Rare and exquisite wines are sought after. Not only as a treat for connoisseurs, but also as an investment property: Recent years have shown that the wine market is developing independently of other asset classes, has low volatility and achieved returns of around 12% p.a. over the past 10 years. This proves how attractive a fine wine investment can be as an addition to a classic portfolio.
However, anyone interested in fine wine as an investment property requires special expertise, as details such as customs regulations, professional storage and seamless provenance of the expensive bottles must be considered. For beginners in particular, it is therefore advisable to entrust the entire investment process to knowledgeable experts and in this way benefit from fine wine as a tasty, value-stable portfolio addition.
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