
This new Napa Valley winery is charging $250 for tastings. Here's why
When visitors come to his Vice Versa winery, which recently opened in Calistoga, Breton said he opens at least $1,000 worth of wine. A four-glass flight, a 'crescendo in terms of intensity,' will likely include Vice Versa's $575 Magnificent Seven, a Cabernet Sauvignon sourced from name-brand vineyards like To Kalon, Dr. Crane and Las Piedras, before moving on to $350 Les Cousins, a 50-50 blend of Napa Valley and Paso Robles Cabernet that's a collaboration with Paso winery L'Aventure.
Still, Breton hopes he won't have to charge the tasting fee at all. He'd rather customers buy at least three bottles of Vice Versa, which waives the charge. His permit allows him to host a maximum of 10 people a day, so he wants to make every visit count.
'Some people can do as many tastings as they want, and I don't have that luxury,' said Breton.
Since opening last month, Vice Versa has been busy, Breton said. In fact, sales are up about 30% this year, a stark contrast with the overall U.S. wine industry, whose retail sales were down 6% year over year as of April, according to Wine Business Analytics. Small-scale, high-end wines like Vice Versa are performing better than lower-priced wines right now, and companies that rely more heavily on direct-to-consumer sales — which a tasting room enables — are better insulated from the crisis unfolding in the wine distribution tier.
The Calistoga winery opening is the end of a long road for Breton, who has operated Vice Versa since 2003 as a virtual brand with no facility or vineyards of its own. Like many upscale Napa wine brands, he buys fruit from some of the most pedigreed sites, especially those owned by grower Andy Beckstoffer, and employs a famous winemaking consultant, Philippe Melka.
But now that he has a stake in the ground, Breton hopes that Vice Versa will stand out among the Napa elite with an estate whose aesthetic he describes as both 'minimalist' and 'punk rock.'
The 5,000-square-foot steel and concrete structure hovers over an outdoor crushpad, lined with slender stainless tanks and concrete cylinders. (The fireproof materials mean that his insurance bill is only $1,000 a month, he said, a bargain for a rural winery.) The indoor areas are contained almost entirely within underground caves, and an arched doorway leads into a spare tasting room with a single long, black table.
Chaotic paintings from Brazilian artist Bruno Leonardo Franklin de Melo line the walls of the tasting room, a look that Breton said is inspired by his stint as the bass player in a punk band. Despite the loud colors, the place is quiet: Breton spent $1 million on a cooling system that doesn't make the loud heaving noises that other systems do. He will project black and white films like 'Casablanca' or 'Seven Samurai' with no sound.
The look may be minimalist, but the budget was not. When Breton acquired the 11-acre property in 2019, it came with plans for a winery designed by Howard Backen, the famed Wine Country architect who died in 2024. He wanted a different look from the luxe stone farmhouses that are Backen's signature, and enlisted San Francisco architects Olle Lundberg and Lev Bereznycky. They drew up a second floor, but the initial quote of $18 million jumped to about $40 million after Napa Valley's 2020 wildfires, which drove up demand for new construction. Breton decided to hold off on the second story for now.
The Ottawa-born Breton made his fortune in software, founding Mediagrif Interactive Technologies in 1996, an early player in Canada's tech industry. In the span of a few years, he said, he went from a 20-something working in his basement to running a public company with more than 450 employees and over $76 million in annual revenue. When Breton left in 2001, he said he was sleeping four hours a night. 'I wasn't healthy. I was exhausted.'
Although he came from a hockey-and-beer sort of family, Breton had become passionate about wine. His first love was Sauternes, the golden-colored sweet wine of Bordeaux, and in 2002, he came close to buying a 200-year-old chateau there. But the winery wasn't doing very well and he decided against it.
He came to California instead, where he 'loved the possibility to innovate and create.' Winemaker Paul Hobbs took him under his wing, putting Breton on the sorting line during harvest and helping him secure a small amount of fruit for himself. The first vintage of Vice Versa was a blend of fruit from the To Kalon and Stagecoach vineyards in 2003. He managed to generate some buzz on critic Robert Parker 's forum and sold out of his small production quickly.
'Pliant' is the word Breton uses most frequently to describe his desired wine style. He prizes a wine's texture, seeking 'that silky finish.' The wines, like many that Melka advises on, indeed feel smooth and supple — Les Cousins, the Napa-Paso blend, is the most chewily tannic of the bunch — with generously ripe, fruit-forward flavors. He accentuates the silkiness by decanting all wines before serving them to customers as long as nine hours in advance. (Though Melka consults, Spencer Kelly is the day-to-day winemaker.)
Breton seeded Vice Versa with $3 million of his personal funds, he said, and it took him 10 years to break even. That year, 2013, was when Breton stopped traveling back and forth from Montreal and moved to Napa Valley. His investment was still a pittance compared with what it would have cost to buy a winery upfront, he believes. Rather than sink $50 million into real estate, 'I decided to build the brand first.'
His Calistoga property came with 5.5 acres of 30-year-old Cabernet Sauvignon and, surprisingly, Lagrein, a northern Italian red that's rare in California. He's removed the Lagrein vines and plans to replant more Cabernet and perhaps Cabernet Franc. The fruit currently goes into Vice Versa's lowest-priced wine, the $150 Spinning Plates.
Although the winery is permitted to produce up to 10,000 cases of wine a year, Breton said he'll stick with his current 5,000-case output for now. After nearly 20 years of custom crushing, he is looking forward to the greater control that having his own winery will afford him in 2025. In the meantime, he's scouting for his next big purchase to extend further control over his grape quality: another vineyard.
'I've got my eye on something,' Breton said. With many wineries and vineyards closing or selling right now, 'it's a good time to look.'
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The Hill
2 hours ago
- The Hill
Trump tariffs: A grocery shopper's guide
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Yahoo
4 hours ago
- Yahoo
The Stock Market Flashes a Warning Seen During the Dot-Com Bubble. History Says the S&P 500 Will Do This Next.
Key Points The "Magnificent Seven" are currently as expensive relative to the other 493 stocks in the S&P 500 as the biggest technology stocks were during the dot-com bubble. The S&P 500 has a CAPE ratio above 37, an expensive valuation that has historically preceded declines in the index over the next one, two, and three years. Investors should avoid stocks they are uncomfortable holding through a severe downturn, and now is a good time to build an above-average cash position. 10 stocks we like better than S&P 500 Index › The "Magnificent Seven" stocks achieved an average return of 335% during the last five years, while the S&P 500 (SNPINDEX: ^GSPC) advanced 92%. That dramatic outperformance has led to those companies becoming a large part of the overall index. The Magnificent Seven account for one-third of the S&P 500 by market value. Lisa Shalett, chief investment officer at Morgan Stanley, sees that concentration as a substantial risk. Not just because seven companies represent a large percentage of the entire U.S. stock market but also because they trade at expensive valuations. Indeed, Shalett says the Magnificent Seven are currently as expensive relative to the other 493 companies in the S&P 500 as the biggest stocks were at the peak of the dot-com bubble. "That sort of concentration in the S&P 500 can lead to greater volatility and the potential for significant drawdowns." Meanwhile, the S&P 500 itself also trades at a historically expensive valuation, making the current situation even more fraught. Here's what investors should know. The S&P 500 trades at a high valuation that has historically preceded negative returns over the next 3 years The S&P 500 is widely considered the best benchmark for the entire U.S. stock market. The index is frequently valued by its price-to-earnings (PE) ratio, which compares its current market value to the aggregate earnings of every member company. 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The chart below shows the index's average return over different periods after its monthly CAPE ratio topped 37. Holding Period S&P 500 Return When CAPE Ratio Exceeds 37 1 year (3%) 2 years (12%) 3 years (14%) Chart by Author. Data source: Robert Shiller. CAPE Ratio = cyclically adjusted price-to-earnings ratio. As shown above, after recording a monthly CAPE ratio above 37, the S&P 500 has generally declined over the next one, two, and three years. In other words, historical data suggests the benchmark index will decrease 3% by July 2026, 12% by July 2027, and 14% by July 2028. Prudent decision-making and patience are key to turning a profit in the stock market To summarize, the S&P 500 currently trades at a historically expensive valuation, and the present valuation gap between the Magnificent Seven and the other 493 stocks in the index is similar to the valuation gap between the largest technology stocks and its other constituents during the dot-com bubble. Investors must make prudent decisions in the current environment to avoid huge losses. That means not only avoiding stocks that trade at unreasonable valuations but also those you would feel uncomfortable holding during a severe market downturn. Also, now is a good time to build an above-average cash position. Having capital ready makes it possible to quickly capitalize on drawdowns. Last but not least, investors must remember the U.S. stock market has created wealth like clockwork over long periods. Even money invested in the S&P 500 at the height of the dot-com bubble in December 1999 -- when the index had a CAPE ratio above 44 -- would have compounded at 8.1% annually over the last 25 years, including dividends. In short, patience is often critical to making money in the stock market. Should you invest $1,000 in S&P 500 Index right now? Before you buy stock in S&P 500 Index, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and S&P 500 Index wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The Stock Market Flashes a Warning Seen During the Dot-Com Bubble. History Says the S&P 500 Will Do This Next. was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Yahoo
One of America's most respected investors says the ‘Magnificent Seven' isn't overvalued — the rest of the market is
Despite a handful of tech stocks contributing to most of the S&P 500's gain this year, esteemed investor Howard Marks doesn't think the 'Magnificent Seven' stocks look overvalued. Instead, he views the rest of the stock market as potentially problematic. Marks is the co-chairman of Oaktree Capital Management, an investment firm with a history of generating returns through deals in distressed credit and equities. He has written a handful of books about investing and gained the respect of investing legend Warren Buffett. Homeowners rush to refinance as mortgage-rate plunge opens window of opportunity I'm a senior who barely survives on $1,300 a month. No way could I live on $1,000. Intel's stock pops. Will Trump come to the rescue with unprecedented government help? In a recent memo, Marks shared his current thoughts on how investors should think about value, and how that relates to the market right now. Value is tied to an asset's fundamentals, he argued, saying it matters over the long run, regardless of what the market is doing at a given moment. Marks pointed to a memo he wrote about the dot-com bubble in January 2000, and in January 2025 he published another note about current valuations, titled 'On Bubble Watch.' Here's how he views the dangers in markets when things become too optimistic or pessimistic: 'When the majority of investors are optimistic, they cause price to rise and potentially exceed value. And when the pessimists reign, they cause price to decline and potentially fall short of value.' Marks notes that the S&P 500 SPX returned 58% over the course of 2023 and 2024, and just over half of those gains came from the 'Magnificent Seven' stocks, which are Apple AAPL, Microsoft MSFT, Alphabet GOOG, Amazon AMZN, Meta Platforms META, Nvidia NVDA and Tesla TSLA. While that was historically unusual, Marks said he didn't think those seven stocks were overvalued, using price-to-earnings as a metric to measure value. 'Because of these companies' greatness, their stocks are highly valued, and there's a popular perception that their elevated valuations are responsible for the S&P 500's unusually high average p/e ratio. The fact is their p/e ratios average out to roughly 33. This is certainly an above-average figure, but I don't find it unreasonable when viewed against what I believe to be the companies' exceptional products, significant market shares, high incremental profit margins and strong competitive moats,' he said. However, when looking at the rest of the S&P 500 companies, Marks saw some valuations that weren't justified. 'Rather, I think it's the average p/e ratio of 22 on the 493 non-Magnificent companies in the index — well above the mid-teens average historical p/e for the S&P 500 — that renders the index's overall valuation so high and possibly worrisome,' he said. You can read more, here, on his views on fundamentals, sentiment, prices, valuations and more. But here's a final nugget: 'The existence of overvaluation can never be proved, and there's no reason to think the conditions discussed above imply there'll be a correction anytime soon. But, taken together, they tell me the stock market has moved from 'elevated' to 'worrisome.'' CoreWeave's lockup is about to expire. What that could mean for the stock. 'I am a senior citizen': My car needs $3,500 for repairs, but only has a trade-in value of $6,000. Do I bother fixing it? Dow ends just shy of record after touching new intraday high, as Buffett gives Wall Street a boost