Welcome,
Request Activation
reprint or license print story Print email this story to a friend E-Mail

Monday, Jun. 07, 2010

Newly Hatched: Walla Walla's wine incubators


Five years ago, Joel Waite became so enamored of Walla Walla, Wash., he moved across the country to become a winemaker.

He enrolled in Walla Walla Community College's enology program, worked as an assistant winemaker at Maryhill Winery for about a year, then began hunting for a location to launch his own winery.

In September 2008, Waite opened CAVU Cellars at one of the Port of Walla Walla's new incubator buildings. A month later, Chris Kontos and his winemaking brother Cameron also moved in with Kontos Cellars.

The port's five buildings - all 1,600 square feet and designed for start-up wineries - have created a near-instant community of aspiring winemakers.

"It makes the whole area a destination," Waite said.

The proximity of five fledgling wineries to one another makes them a great spot for wine lovers seeking boutique wines, said Andrew Lodmell, winemaker and co-owner of Lodmell Cellars, one of the three early tenants.

As winemakers, they compete for business, but being near each other allows them to complement each other, too.

"It's our little community of winemakers that people are beginning to discover," Lodmell said.

"It's such a supportive environment to grow in," said Kontos, who also is a wheat farmer north of Walla Walla. The hassle of dealing with liquor laws was puzzling, he said. "But thanks to our (winemaker) neighbors, we were able to weave our way through the maze a lot quicker."

Denise Slattery, co-owner of Trio Vintners with husband Steve Michener, said, "We are in different stages of our business. We are competitors, but we also work well together. It's a unique setting."

Even as the five wineries band together to promote the region at the Walla Walla Regional Airport, they also are working on their exit strategies. Trio plans to "graduate" from the incubator in the next few months and open a tasting room in downtown Walla Walla. Slattery and her husband recently bought out the third partner, Tim Boushey, who wanted to pursue wine distribution opportunities in Western Washington.

The purpose of an incubator facility is to help new wineries get started, said Jim Kuntz, the port's executive director. The port is making the incubators available for up to six years at moderate rent, which starts at $1,200 a month and gradually increases to $2,200 in the sixth year, Kuntz said. Once the winemakers establish themselves, they are expected to go out on their own.

Incubator winery owners have a recipe for growth, but no one's talking about making big money soon.

"We don't want to overextend," Slattery said, adding Trio is happy making 1,000 cases a year. It's one of the few Zinfandel producers in the state, Slattery said, and it also makes Sangiovese, Syrah, Carmenere, Mourvedre and Grenache. Its wines are priced from $15 to $26.

Since getting started at the incubator in 2006, Trio has been growing slowly, relying on selling half of its products through the tasting room. Despite the economic slowdown, Trio's sales remain steady. Trio aggressively uses blogs and social networking sites to reach young wine drinkers.

Kontos Cellars is primarily being discovered via word of mouth and publicity through the port. While Chris manages the winery, Cameron (assistant winemaker at Forgeron Cellars) makes the wine.

"We always had an appreciation for wine," said Chris, whose father, Cliff, is co-owner of Fort Walla Walla Cellars. "We like Bordeaux-style wines and like to showcase single varietal wines."

Kontos has released nine wines, mostly in the $22 to $36 range. The winery recently released its 2009 Gossamer White and 2007 Petit Verdot. Sales help cover costs, he said. But not making a profit immediately isn't bothering the Kontos brothers.

"No one planned on making money for a few years," Chris said, adding he plans to stay at the incubator for about four years. "(The incubator) allows us to invest time and energy growing our business rather than servicing debt."

Incubator winemakers are planning to have music concerts in the summer to draw wine lovers, he said.

Most visitors to incubator wineries at the Port of Walla Walla tend to be "more adventurous wine tasters," Slattery said. "They're interested in finding the next rising star (among winemakers)." Trio recently released its 2009 Tres Rose, a blend of Grenache and Mourvedre, and its 2007 Sangiovese from Morrison Lane Vineyard in Walla Walla and Boushey Vineyard in the Yakima Valley. The 2007 Sangiovese Riserva - made with Boushey grapes - was released exclusively to wine club members. Trio will release its 2007 Mourvedre, of which 150 cases were produced, in the fall.

Waite of CAVU opened his winery to the public in April 2009, releasing several wines including Barbera and a blend of Cabernet Sauvignon and Petit Verdot - all within the $22-$30 range.

"Sales during the spring release weekend doubled over last year," Waite said.

Waite, a private chef in Washington, D.C., came to Walla Walla to attend a family wedding and decided to make Walla Walla his home while embarking on a new career as a winemaker. His parents invested $400,000 of their money in his business venture and became partners with him, Waite said. He named his winery CAVU to honor his father, James, a former pilot. CAVU stands for Ceiling And Visibility Unlimited, an aviation term meaning, "It's a great day to go flying."

He's begun using social media to connect with customers and build his brand. "It seems Twitter and Facebook are paying off," Waite said.

Often new winemakers focus on obscure varieties such as Petit Verdot and Barbera instead of Merlot or Cabernet to stand out from others, said Coke Roth, a former wine distributor and longtime international wine judge in Richland, Wash. It's an element of novelty, he said.

"But establishing a reputation is a lot harder than making wine."

What keeps attracting people to the wine business is the romance associated with it, he said. For many, it's like indulging in a process that's both "science and art" at the same time, he said.

Many winemakers may have to work a long time before quitting their jobs, Roth said.

Trio's Steve Michener is a nurse at St. Mary Hospital in Walla Walla, while Denise teaches wine marketing at Walla Walla Community College. This is working out to be perfect, said Slattery, who's excited about Trio's move out of the incubator.

"Now, we'll be able to focus on our relationships with growers and vineyards, on winemaking and also distribution." And she hopes that'll help Trio garner more attention from wine aficionados.

Andrew Lodmell of Lodmell Cellars evolved from being a grape grower to a winemaker in barely six years, after first planting grapes in 1995. After 2001, he was concerned that grape buyers might cancel their orders, so he began dabbling in winemaking to let people know about the quality of the grapes he was offering. As a winemaker he wants to express the fruit that comes out of the vineyard, he said.

Winemaking is a natural extension of his understanding of the soil and grapes. Lodmell said he's still building his wine market. He said he's bought pumps and tanks and is now investing in French oak barrels.

"If you've got a good product, it'll eventually reach people. You've got to be patient."

Devin Stinger, who gave up his job as an aerospace engineer to be a winemaker, started Adamant Cellars with his wife, Debra, in October 2006.

"Business has been pretty decent," said Stinger, who's trying to reach out to a wider audience beyond the tasting room. Marketing has been the greatest challenge, he said. And if he were starting his business today, he would keep a lot of spare cash handy, he said.

Getting into the mass market isn't easy, because most people don't buy wines that cost more than $30, Stinger said. They need to like your wine and be comfortable with the price point, said Stinger, who also works as full-time business analyst for a Walla Walla company.

"We want to get out of the incubator in two years. That's the goal. We want to do it smartly," Stinger said, adding he's happy with the progress he's making.

He makes about 1,000 cases a year.

Each winery wants to provide its tasting room visitors a unique experience to lure them back. It's important to get the people engaged, Slattery said. "More they try, more they'll buy." e

Pratik Joshi covers business and the wine industry for the Tri-City Herald in Kennewick, Wash.

Visiting the incubators

Adamant Cellars

600 Piper Ave., Walla Walla, 509-529-4161; adamantcellars.com

Tasting room hours: 11 a.m. to 5 p.m. Thursday through Sunday and by appointment.

Lodmell Cellars

598 Piper Ave., Walla Walla, 509-525-1285; lodmellcellars.com

Tasting room hours: 11 a.m. to 5 p.m. Saturday and by appointment.

Trio Vintners

596 Piper Ave., Walla Walla, 509-529-8746; triovintners.com

Tasting room hours: 11 a.m. to 4:30 p.m. weekends and by appointment.

CAVU Cellars

602 Piper Ave., Walla Walla, 509-540-6352; cavucellars.com

Tasting room hours: 11 a.m. to 5 p.m. daily.

Kontos Cellars

594 Piper Ave., Walla Walla,

509-386-4471; kontoscellars.com

Tasting room hours: 11 a.m. to 5 p.m. weekends and by appointment.