Joseph Phelps Vineyards

General Winery News: Napa's first

farmworker housing facility breaks ground

August 22 on Joseph Phelps Vineyard's

River Ranch property

by Tom Shelton

Uncharacteristically foreboding skies greeted a restless crowd gathered at the Calistoga Farm Worker Camp in August of 2000 to hear about a new plan designed to relieve over-crowding at the three county-authorized migrant worker camps.

Lured to Napa Valley by the promise of high wages and plentiful work, as many as a
hundred men were crammed into a facility designed for forty, and with scores of daily, new arrivals demanding a bed for the night, the fatigued camp director was threatening a very
public resignation.

During the preceding days television crews from San Francisco and Los Angeles scoured the Napa Valley documenting the human misery of farm workers living in cardboard domiciles under bridges, along the banks of the Napa River, and on the porch of the Catholic Church. Amidst this backdrop of demand for immediate action, a collection of mostly Latino farm workers, public officials, and news crews assembled for what many presumed to be the latest in a string of unfulfilled promises.

For each of the preceding three years, the Napa Valley Vintners Association had covered the increasing operating shortfalls of the three migrant labor camps. Nothing, however, had prepared their Board of Directors for the urgency of a housing shortage stimulated by the post-phylloxera demand for hand vine care, which accompanied increased vineyard acreage, high density plantings and the specialized rigors attendant to the new vineyard architecture. The demand for increasingly skilled labor was great and, surprisingly, year-round. Simply covering annual operating losses would not begin to solve the problem, so the vintners turned their attention to a long term approach.

The plan delivered before that distrustful gathering was ambitious, but workable. The Napa Valley Vintners Associa-tion stepped away from their accustomed marketing role and became a lead agency of sorts in a campaign that included volunteerism, legislative action, coalition building, and plain old cajoling.

Among the numerous promises delivered that day was a call for a donation of land for the purpose of constructing a new farm worker housing facility. Several months later, vintner Joe Phelps heeded the call and announced the donation of eight acres of vineyard land known as River Ranch north of Zinfandel Lane along the west side of the Silverado Trail. Implicit in his gift was the expectation that other vintners would also come forward.

Indeed, the River Ranch location was suitable for a facility that will accommodate 60 workers in dormitory style housing, but the need, county-wide, is placed in excess of 300 beds.

Unanticipated when the gift was announced, was the requirement for a referendum of the people to approve the subdivision of agricultural land in an agricultural preserve, even for the purpose of farm worker housing.

Upon learning of this surprising development, the Napa Valley Vintners Association, in conjunction with a broad based coalition of interested partners, developed and promoted an initiative that would grant an exemption for Phelps and up to four additional new facilities. Measure L was summed up nicely by Father John Brenkle in his now infamous slogan, 'Vote for L or go to hell.'

Needless to say, the measure passed with the overwhelming approval of 73% of Napa
County voters.

With construction funding by the State of California, the County of Napa and the Napa Valley Vintners Association, the River Ranch Farm Worker Facility is expected to be operational by the summer of 2003.

Architects Don Brandenburger and David Easton have designed a model facility whose rammed-earth construction and thoughtful space planning respects the cultural and social fabric of the unheralded workers upon whom Napa Valley depends.

In large measure the promises made by the Napa Valley Vintners Association in August of 1999 are being kept. For the purpose of farmworker housing, a vineyard acreage tax has been approved, and vintner John Shafer recently announced plans for a second donation of land. There remain many promises to keep, but the framework for doing just that is plainly in place.

Linda Reiff and the NVVA: A Perfect Fit to

Lead Vintners on Critical Issues

By Kathie Fowler

When Linda Reiff was hired as the Executive Director of the Napa Valley Vintners Associa-tion (NVVA) in 1995, she had her work cut out for her. Her predecessor, the popular Elaine Mackey, had suffered a tragic and untimely death from breast cancer at the age of 39, and Linda had to step in and replace one of the most beloved people in the industry. The organization itself had no computer system, no web site, and was solely marketing-based, with the Napa Valley Wine Auction comprising the bulk of the association's marketing efforts. The annual budget was based exclusively on membership dues — there were no fundraisers in place — and the limited staff necessitated relying heavily on volunteers. The NVVA represented 110 member wineries serviced by a staff of 8.

During her tenure, Elaine Mackey used to joke that she had to answer to 100 bosses. Today, with a membership of 215 wineries, Linda is accountable to double that number.

According to Tom Shelton, president and CEO of Joseph Phelps Vineyards and past president of the NVVA, "Under Linda Reiff's direction, the NVVA has evolved into the pre-eminent voice of Napa Valley wine producers and a powerful representative for California wines. It can easily be said that the quality of the NVVA is a direct reflection of Linda's ability to understand the issues and to promote the fine wines the association so ably represents."

What kind of temperament and special ability is required to meet the demands of a job that balances so many diverse elements -- political, social, economic and environmental — in the context of answering to 215 "bosses"? "I have a unique background," Linda remarks. "It was a perfect fit for the job."

Born into a fifth generation Yolo County farming family, Linda grew up in Woodland, California where, beginning in the 4th grade, summer vacations included "sorting tomatoes standing on a lug box on the back of a tomato harvester."

"I used to be jealous of friends who didn't have to work every summer," she relates, "but I WAS able to buy my own car at 18, and with the help of scholarships pay my way through college. Looking back, my family instilled in me a strong work ethic that has served me well."

In 1971, Linda's father planted a vineyard in the Dunnigan foothills which at its peak produced 20,000 cases under the Orleans Hill label (so named for the first winery established in Yolo County in 1869). The experience would prove invaluable as Linda became familiar with the production, sales, marketing and public relations aspects of running a vineyard and winery.

During high school, in between summer jobs on the farm, Linda was a reporter for the Woodland Daily Democrat. She enrolled at Cal Poly in San Luis Obispo as a journalism major (with an emphasis on agricultural communications), and continued to work as a reporter both during and after college until 1987, when she joined the staff of Congressman Vic Fazio.

Linda worked for Fazio from 1987 to 1995, starting out in politics as his district representative for Sacramento, Yolo and Solano Counties. When Fazio became the 4th highest ranking democrat in the House of Representatives, Linda went to Washington to serve as his communications director in 1991 and chief of staff in 1993.

She describes the experience as an invaluable precursor to the demands that would be
put on her as executive director of the NVVA. "In California, Vic was a Democrat working in
a Republican district, and every day the challenge was to work with people of differing ideologies, hear all sides and seek the common ground." She laughs. "It's a lot like my
current job."

Today, Linda looks back on her 7 years with the NVVA and reflects on what she considers the highlights of her tenure so far.

"Farmworker housing is at the top of my list," she remarks. "When I arrived in 1995, neither the wine industry nor the NVVA had addressed the problem. When I was growing up, we housed our farmworkers, I sorted tomatoes with them, I grew up with them — this issue is personally important to me."

In 1995, under Linda's leadership, the NVVA organized an ad hoc, voluntary assessment program to help cover the costs of running county farmworker facilities. Since 1999, the program has raised over $700,000 and was a precursor to one of the NVVA's biggest achievements, the sponsoring of legislation (AB1550) which created a permanent assessment on Napa County vineyard land. "A majority of the county's 1900 vineyard owners voted to tax themselves $7.76 per acre," Linda explains with satisfaction. "Proceeds will fund new and continuing housing needs for migrant farmworkers in our valley."

In 2000, the NVVA was also instrumental in the formation of the Farmworker Housing Oversight Committee. The group, which includes representatives from the wine industry, public officials and farmworker advocates, advises the Napa County Board of Supervisors on key farmworking housing issues and works together to craft solutions.

Also taken to new heights under Linda's leadership, the Napa Valley Wine Auction, begun
in 1981, remains a crucial marketing component that has evolved over the past decade into
the most successful charitable wine auction in the world. Initially created as a fundraiser
for community health care, in 1997 Linda worked with a task force to study other potential beneficiaries for the funds, and explains with considerable pride that "Today, the wine auction has raised over $40 million for health care, affordable housing, farmworker housing and
youth development."

Another source of satisfaction has been the success of Premiere Napa Valley. "My first year here it was apparent we needed a fundraiser to augment the income generated by members' dues. Premiere Napa Valley was born, the barrel auction for the trade that is held every winter at the Culinary Institute of America in St. Helena. This has become one of the NVVA's best marketing tools as well as a great fundraiser. Last year 900 people attended and we raised over $700,000."

Positioning the Napa Valley appellation as one of the finest winegrowing regions in the world has been an ongoing goal, although the priority has shifted from promoting the appellation to also protecting it. An arcane loophole in BATF regulations has allowed some producers to use the Napa appellation on labels even though the wine contains no Napa grapes.

In 2000, the California legislature passed an NVVA-sponsored state law closing the loophole for Napa Valley wineries, but the law has been challenged by those parties who want to preserve the old labeling standards, and a hearing has been set for November 13th in Sacramento. "We won the first battle because we had 'truth in labeling' on our side," Linda confides. "I'm hopeful we'll win this one as well."

As for the future? "Working with wine industry issues is our biggest challenge. Farmworker housing, geographic brand names, social and environmental concerns, direct shipping — these are all on NVVA's plate, although marketing and promotion are still our primary mission."

As executive director of the NVVA, Linda Reiff clearly has her work cut out for her, but in charting her professional career to its present course, it's hard to imagine these critical issues being in more capable hands.

Linda lives in St. Helena with her husband, Dick Ward, a partner in Saintsbury Winery.

Uncorked!

by Tom Shelton

Reviewing the Current Wine Market

There is an unmistakable air of nervous energy amidst the chaos that currently defines
the American wine market. After a decade of unparalleled growth and unbridled optimism,
the shocking events of September 11th, followed in close order by the disquietudes of
financial markets, ominously coincided with macro-level disruptions in the very structure of the wine world.

News of the Beringer sale to Foster's Brewing Company accompanied gloomy reports from various wine grape growing regions of California that the once vanquished specter of over-supply had returned.

Along with falling grape prices came the realization that American distribution channels would be usurped by a pipeline of off-shore wine from a country where labor, land and currency are available at roughly half that of California.

Distributors confronting the monolithic demands of a muscle flexing Diageo in the wake of their purchase of Sea-grams began to sense the unpredictability of a twenty year crusade toward consolidation.

Meanwhile, Federal Judge Melinda Harmon issued her long awaited decision invalidating a Texas claim that the Twenty-First Amendment, which provides a veil of protection for a patchwork of arcane liquor laws, trumps the Commerce Clause of the Consti-tution. Her decision finally provided an opening for proponents of direct shipping and opponents of franchise protection.

In spite of Juanita Duggan's impassioned sermons to the WSWA choir, it appears as if the wholesalers may be losing their more than 60 years of control over the three-tier system. An expected court ruling in New York could bring on a flood of common sense state legislation that will benefit wine consumers across the nation.

At home in Napa Valley, the past year has yielded more than a few surprises. A new conservation ordinance will severely curtail new vineyard development and may presage huge spikes in vineyard land prices with the realization that the world renowned qualities of Napa are astonishingly scarce. Protection of the Napa Valley appellation system will be the question when the California Court of Appeals opens oral arguments on November 19th. Vintner Fred Franzia will square off against the State of California and the Napa Valley Vintners Association in a case that may decide the limits of entitlement to the use of the Napa Valley name.

If chaos is indeed the progenitor of opportunity, then there is much for consumers to look forward to in 2003. New channels of distribution will likely increase consumer access to wine. The return of a buyers market will slow, if not reverse, wine prices at all levels and, with luck, a consumer who purchases a wine with Napa on the label may be reasonably assured that Napa grapes are in the bottle.

From our Winemaker: Notes from the 2002

Harvest — Preliminary Impressions

Craig Williams
Director of Winemaking

This year we harvested the first Cabernet crop on our Spring Valley ranch from replanted vineyards. Improved farming methods and better rootstock and clonal selection are immediately apparent as we drain tanks in the cellar and notice highly articulated, black fruit aromas. In general, we were blessed this year with ripeness and good extraction. The challenge, as always, is finessing maximum quality out of the fruit.

Bulmaro Montes,
General Manager, Vineyard Operations

This year's fruit has lighter tannins and a more gentle mouthfeel, which I believe will result in wines best described as concentrated and elegant. I would characterize 2002 as a softer more feminine vintage, with the exception of Backus Vineyard fruit, which is tannic and intense, containing more masculine, mineral-like flavors.

Damian Parker,
Vice-President, Production

We brought in 90% of our fruit over a fairly intense 4-week period beginning the last week in September. Yields were off 12-15% due to crop thinning in the vineyard to mitigate uneven ripening, but balance is good as a result. Fruit is less tannic than last year and will probably yield more approachable wines. A real stand-out this year was the Monterey Syrah which was crop thinned below two tons per acre (average is 5 tons per acre). The result is going to be an intense, exotic, over-the-top wine which should blow your socks off!

Philippe Pessereau, Senior Viticulturist,
Assistant Vineyard Manager

Warm, consistent temperatures in June, July and August allowed a healthy leaf canopy to form so that fruit ripened well and developed good flavor
and color relatively early. Then three successive heat spells in September caused some shriveling and required aggressive crop thinning. The result was vividly-colored, intensely flavored fruit at harvest with concentrated flavors and tannins.

Greg Cannon,
Viticulturist

This was our first harvest from new vineyards in Freestone. We thinned the crop late in order to best understand what crop load we might expect, and as a result Pinot Noir developed evenly with dark colors and full flavors. Chardonnay looks good to very good. Early impressions are of of fresh, ripe fruit that sustains manageable tannins. Our ongoing goal is to further refine vine management and harvest techniques in order to better understand cool climate grape quality and development.

Ashley Hepworth,
Enologist

High sugars and low yields for the 2002 vintage have produced deep colors and concentrated flavors which I predict will translate into stellar wines.

SIX NEW WINES RELEASED FOR

FALL & WINTER

New releases include 2000 Cabernet Sauvignon, 2000 Merlot, 2000 Ovation Chardonnay, 1999 Backus Vineyard Cabernet Sauvignon, 1999 Syrah and 2001 Viognier

The 2000 Vintage
The long 2000 growing season was a roller coaster ride of temperature highs and lows, with many vintners picking from August to November, a time span causing both mental and physical fatigue on the part of vineyard and production crews. Nevertheless, overall fruit quality was high despite heat spikes in June and September, a mid-September cold snap, and rain in mid-October. A warming trend finally brought harvest to a close at the end of October.



BLEND: 80% Cabernet Sauvignon, 10% Merlot, 6% Petite Verdot and 4% Malbec from estate-owned vineyards and independent growers.

WINEMAKER NOTES: Despite difficult weather conditions in 2000, when our Cabernet fruit was finally harvested it displayed deep color and dense, extractive flavors. The finished wine is softer and more accessible than last year's, with lush ripe flavors of cedar and cassis.



BLEND: 100% Merlot from estate-owned vineyards (50%) and independent growers (50%).

WINEMAKER NOTES: Similar to the Cabernet Sauvignon, the 2000 Merlot is round, lush and approachable, with cherry-like aromas and complex fruit flavors of cherry and spice.



BLEND: 100% Chardonnay from estate-grown vineyards in Carneros as well as from independent growers.

WINEMAKER NOTES: Despite the tumultuous weather conditions, our Carneros Chardonnay was harvested during a window of mild weather in late September-early October during which fruit ripened to near-ideal sugar/acid levels. The finished wine, which contains bright fruit flavors of citrus and pear, is generous and creamy in the mouth with rich oak notes of spice, toast and vanilla.



BLEND: 100% Cabernet Sauvignon from the estate-owned Backus Vineyard in Oakville.

WINEMAKER NOTES: Cool temperatures characterized much of the 1999 growing season, with harvest running to to three weeks later than normal. Warm weather in late September accelerated the ripening process, and the extended season resulted in darkly pigmented fruit, intense flavors and balanced natural acidity, all of which contributed to an outstanding crop in this "first growth" Oakville vineyard.

The wine itself is opulent and multi-layered, with great depth of color and super-ripe aromas of black fruits and mocha. An impressive concentration of sweet tannins frames a noteworthy finish and contributes to a degree of ageability that rivals the best of the 90's.



BLEND: 100% estate-grown Syrah from Yountville and Carneros.

WINEMAKER NOTES: Compared to some of the previous vintages, anxiety levels were mild as the 1999 harvest approached and we observed grapes ripening to maturity after a long, cool growing season. Warm weather in late September/early October accelerated sugars, and in our Syrah vineyards the extended season resulted in dark fruit color, smoky/spicy aromas, and ripe, extractive flavors.



BLEND: 100% Viognier from our Spring Valley ranch (68%) as well as from estate vineyards in Yountville (25%) and Carneros (7%).

WINEMAKER NOTES: A long growing season allowed optimal ripening and yielded intensely flavored fruit that has been fashioned into a stunning wine containing flavors of orange blossom, honeysuckle and white peaches.

Special Report: JPV Converts 4.5 Acres of

Vineyard to Olive Groves — 2001 Vintage

Produces 36 Cases of Oil

In the 30 years that JPV has cultivated vineyards on the home ranch in Spring Valley, a great deal of experimentation has gone on in an attempt to match individual sites to specific grape varieties. In a vineyard block called "Upper Lake" vines were not thriving — possibly because of the high clay content of the soil — and in 1998 a decision was made to try an experimental planting of olive trees on the 3.5 acre site. To our delight the grove flourished, and in 2001, an additional acre of trees was planted nearby, bringing the total olive plantings to 4.5 acres.

Harvesting olives for high quality oil requires the same care as harvesting for table fruit. Olives tend to take on the odors and flavors of their surroundings, so it is crucial that the fruit be hand harvested, that it not come in contact with the ground or in any way be damaged, and that processing occur as soon as possible after picking to avoid the onset of fermentation or
mold growth.

According to U.C. Davis, "An ideal site for olive oil production has a clay loam soil with a high water-holding capacity and good internal drainage" * — precisely the conditions that the Upper Lake block provided.

As a world commodity, olive oil standards are set by the International Olive Oil Council in Madrid, which divides the product into three types: virgin olive oil, refined olive oil and olive oil (or pure olive oil).

VIRGIN OLIVE OIL
Applies only to fruit that has not undergone any treatment other than washing, decantation, centrifugation and filtration. Additional terms used to describe virgin olive oil are "extra" "fine," and "ordinary." It is the pure, unadulterated oil from top-quality olives with perfect taste and odor characteristics as judged by a panel of expert tasters.

REFINED OLIVE OIL
Refers to virgin olive oil that has been subject to refining methods, often because olives have been damaged or culled from a pickling operation. Refined oil will have less intense flavors than virgin olive oil.

OLIVE OIL (or PURE OLIVE OIL)
Refers to oils that have been blended to obtain uniformity of color and flavor. Many oils imported into the U.S., as well as most California olive oils, fall under this classification and are labeled "pure" or "100% pure" olive oil.

Surprisingly, the United States has no legal definition for extra virgin olive oil, so in 1992,
the California Olive Oil Council (COOC), in conjunction with U.C. Davis, established a panel
of tasters and introduced a "Seal of Quality" program similar to Europe's extra virgin olive
oil certification.

This seal is the consumer's best guarantee that the olive oil is indeed 100% California Extra Virgin, and we are pleased that since our first small bottling in 1998, we have been graded "Extra Virgin" every year.

This year's bottling was cold pressed at McEvoy in Marin County using a stone mill and centrifugal separator with the oil subsequently settled and racked twice before being bottled in March, 2002.

Reminiscent of the artisan-produced oils of Tuscany, our Spring Valley olive oil has a green, grassy chlorophyll-like component with mildly spicy flavors that contain a hint of pepper.

For ordering information, please call the winery at 800-707-5789.

Constantino Corro, "pillar" of the

vineyard crew

Born in 1955, Constantino Corro, known as "Tino," came to this country in 1972 from a small city in the state of Oaxaca called San Marcos Arteaga. He grew up in a 3-room house made of adobe and tile, and shared it with 5 sisters, 5 brothers and his mother. The family was supported by his father, who had found work in the Napa Valley in the early '60s, and regularly sent money home. Tino also contributed, working as a stonemason in San Marcos from the age of 12.

In 1972, when he was 17, Tino's father asked him if he wanted to work or stay in school. Tino opted to join his father in the Napa Valley, and for two years was employed by a vineyard management company before meeting Bulmaro Montes, JPV's general manager of vineyard operations. In 1974 Bulmaro invited Tino to join the crew who was planting the new Phelps vineyards on the Spring Valley ranch.

At the age of 22, Tino proposed to Josefina, his teenage sweetheart, and brought her to the Napa Valley from San Marcos. The couple have four children: Victor (24), Constantino (20), Luis (17) and Stephanie (2 1/2). "Tino will be 60 when Stephanie's a teenager," Bulmaro remarks. "Let's hope it doesn't give him a heart attack!"

Today, Bulmaro describes Tino as "my right hand -- the pillar of the vineyard team. He's smart and can operate and fix just about any equipment. We have no professional mechanic on staff and very seldom need the services of one."

When asked what is his favorite part of his job, Tino responds "I enjoy doing whatever I'm asked to do." What about heat spells at harvest, or frost at 3:00 am or pruning in the rain? "It's my work," he says simply. "I'm more than happy to do it."

Bulmaro adds, "Being part of a team is what makes being here so special. Regardless of our titles, we all work together. Tino's like family. I'm lucky to have had him at my side for the last 27 years."

Phelps Preferred Expands

Customer Service Staff

In addition to Phelps Preferred duties, JPV's Customer Service Dept. has been enlarged to handle wine orders, research shipping questions and answer customer queries in general. The expanded staff (from left to right) is Meredith Maxwell, Neta Thornell, Victoria Field and Molly Britton, Director of Customer Service.