A week passed.
It was the day the Saudi guests were scheduled to arrive, so Harry Montis had been there since morning.
“Did you know? The rumors have already spread.”
Harry’s massive frame was sunk deep into the sofa, but he looked surprisingly at ease.
“I heard. Some people are already saying Redwood might be sold off to Middle Eastern capital. There are even rumors going around about the price.”
“Considering the state of Napa’s wineries, it isn’t strange for rumors like that to spread.”
As Harry said, the wineries of Napa Valley were currently going through a very difficult period. It would be a mistake to look at Redwood, which was thriving thanks to one outrageous cheat-like advantage after another, and assume other wineries were doing the same.
A representative example was Sloan Estate, one of Napa Valley’s leading wineries producing cult-class wine. Besides that, there were more than a few others struggling with management issues, including Cosentino Winery, Beringer Blass Wine Estates, Ascentia Wine Estates, and Artesa Winery.
Among them, Cosentino would actually go bankrupt. That was how hard most Napa Valley wineries had been hit by the fallout from the 2008 financial crisis.
Naturally, winery listing prices had also fallen. Most wineries suffering from financial difficulties were down 30 to 40 percent compared to 2007, and some wineries had even plunged by more than 50 percent.
Into this crisis, Chinese capital and Middle Eastern capital had begun infiltrating Napa Valley. So from an outsider’s point of view, it was not an impossible story that Redwood might be sold while its value was at its peak.
“After hearing the rumors, I became certain. They’re definitely targeting us.”
At my words, a deep smile spread across Harry’s broad face.
“As expected, your instincts are outstanding. I thought the same. The Saudi side is deliberately leaking rumors to check the reaction.”
“Wouldn’t that naturally create resentment instead and make us not want to sell the winery?”
“You could think of it that way, but you have to remember that the other party is Middle Eastern royalty. If anything, they probably think they’re showing us something. That while they’re shopping around for other wineries, at Redwood they only intend to purchase wine in good faith…”
“Ah…! I see. They can further prove their sincerity?”
“Exactly. In reality, there are many owners trying to sell their wineries to Middle Eastern money or receive investment from them to escape this crisis. So if they buy one or two wineries on the market while planting poison in Redwood, they can accomplish everything they want without taking the slightest loss.”
“Hmm… For now, let’s see if they move as we expect.”
About twenty minutes later, the Saudi party arrived at the winery at the appointed time.
Aside from Hassan, whom I was now seeing for the second time, there was one more person in the group this time. He looked to be in his early sixties, with striking white hair and deep eyes. Even standing still, he had a certain gravity to him.
Before we sat down, Hassan introduced him.
“Mr. Brian, I have brought one more person with me today. He is a direct advisor to the person I serve. You may call him Dr. Al-Mubarak.”
Al-Mubarak gave a brief greeting and handed me his business card. Printed in Arabic and English, the card had only two short lines written in English.
Khalid Al-Mubarak, PhD
Senior Investment Advisor
There was no affiliation, no company name, and no contact information. That deliberate anonymity made his charisma stand out even more.
Then Hassan added further explanation.
“We judged that today’s meeting could become part of a larger picture than a simple wine transaction, so I brought Dr. Al-Mubarak with me. There are matters he wishes to discuss with you directly.”
“Of course. Please, have a seat.”
At my invitation, Al-Mubarak slowly sat down. His gaze swept once over Warren and Harry in the reception room, but both men had enough years and experience behind them that they calmly received his gaze without the slightest wavering.
Al-Mubarak looked at those two rather than at me for a moment before slowly opening his mouth.
“It is an honor to meet you. Before we get to the main topic, Mr. Brian, the young genius of Napa Valley… your philosophy in grape cultivation and your skill in winemaking were truly impressive. More than a few people have tasted your wine from afar and been astonished. I myself am one of them.”
His British English carried heavy weight in every word.
“Thank you.”
“The person I serve was also deeply impressed by your extraordinary talent. In fact, today I would like to disclose part of his identity. It is both a sign of trust and of sincerity.”
“Yes…”
“The person I serve is a direct member of the Al Saud family, a member of the advisory council for the Saudi sovereign wealth fund, and someone who has actively participated in building a global luxury asset portfolio. He has demonstrated exemplary investment results in hotel chains, real estate, and stakes in luxury brands.”
Harry, who had been listening, whispered in my ear.
“The Al Saud family is so vast that just from that name, we can’t tell whether he’s one of several thousand royals or a core power figure. Still, the fact that they revealed which family he belongs to suggests they’re quite serious.”
As I nodded, Al-Mubarak continued speaking.
“A winery in which someone of his stature personally takes interest is extremely rare. To be frank, there are not even one or two assets a year that he personally examines with interest and affection. I consider the very fact that Redwood Winery is one of them to be an honor.”
I could not help but pause slightly, because the word “asset” had come out so naturally. Wine could certainly be an asset, but if he truly cherished it, he surely would have used a different expression rather than “asset.”
“Well, I’m grateful that you think so highly of our winery.”
Al-Mubarak smiled broadly and began laying out a new proposal in earnest.
“What do you think of the offer Mr. Hassan made last time?”
“That is a bit… I’m sorry, but it would be difficult.”
Perhaps because he knew I would respond this way, since I had already refused once before, he nodded as he spoke.
“You found the 1,000 cases and the 30 percent annual exclusivity burdensome, I take it. Then we will only receive a pre-allocation of 500 cases from the first vintage. We will increase the wholesale price to 700 dollars per bottle. That makes a total of 4.2 million dollars.”
“We will also reduce the annual exclusive purchase right from 30 percent to 15 percent. The term will be shortened from ten years to five years as well. At this level, I believe it would place almost no burden on the winery’s operations. We are making a sincere concession.”
On the surface, it looked like an enormous concession. The quantity had been cut in half, the exclusivity ratio cut in half, and the period cut in half. The price had been raised by 100 dollars per bottle too.
But in reality, the essence remained the same. A large-scale pre-allocation and a long-term exclusive purchase right were still exactly that. Whether it was 500 cases or 1,000 cases, the pre-allocation itself shook the winery’s operating principles, and whether it was five years or ten years, long-term exclusivity was itself the trap of a right of first refusal.
The increase in wholesale price also read differently. It was certainly attractive that we would receive 100 dollars more, but if I thought just a little further, it would become the basis for them to pump the market price under the pretext that they had bought the wine at a higher price. In other words, the pump-and-dump structure would become even stronger.
Harry seemed to be thinking the same thing, because he leaned his large body toward me and whispered.
“It’s the same thing in the end.”
I nodded and spoke calmly.
“Dr. Al-Mubarak, I appreciate your concessions. However, I would also like to make our position clear on one point. Whether it is 500 cases or 1,000 cases, pre-allocation itself does not align with the operating principles of our winery. Our principle is that we do not make large pre-release allocations to anyone. That is the first principle in protecting the value of a cult wine.”
“Instead, if you apply through the normal process after release, we can consider giving you priority allocation of around 200 to 300 cases. Considering the scale of his cellar and the level of his collection, he could be placed under priority review.”
That was not much different from when Viktor Karloff made his first large purchase.
Looking at the expressionless Al-Mubarak, I continued.
“The same applies to annual exclusive purchase rights. Whether it is five years or ten years, our principle is that we do not grant long-term exclusive purchase rights to any client. If you apply through the normal process each year, we will review it within that year’s shipment volume.”
A heavy atmosphere settled over the reception room. Al-Mubarak steadied his breathing for a moment, then opened his mouth.
“Mr. Brian, to be frank, this is the first time I have seen us present concession cards twice, only to be rejected both times. The person I serve will take this as unexpected.”
It was a very subtle pressure. He was indirectly bringing up the fact that royal dignity was involved. But I did not waver this time either.
“Dr. Al-Mubarak, our refusal is not disrespect toward him. It is because these are the operating principles of our winery, and those principles exist to protect the value of our wine. Since he recognizes the value of our wine as a collector, I trust that he will also understand the principles that protect that value.”
Warren, who had been watching from the side the entire time, nodded and added a word.
“President Brian is right. A winery’s value comes from its operating principles. Once those principles are shaken, by the same logic, the value of the other luxury assets he owns can also be shaken. Whether hotels, real estate, or luxury brands, all luxury assets stand on principles.”
At those words, the corners of Al-Mubarak’s eyes trembled. It meant, We know the other luxury assets you own are operated according to the same logic, so don’t try to force this.
Perhaps lost in thought, Al-Mubarak looked at Warren for a moment. There was a slight, almost imperceptible change in his expression, but I could tell that he had been placed in quite a difficult position.
After a moment, Al-Mubarak let out a light sigh.
“Hoo… Mr. Warren’s words do have a point. Very well. We will leave it here for today, and after I report to the person I serve, I will contact you again.”
As he rose from his seat, he added briefly.
“Mr. Brian, I would like to say just one thing. The person I serve is someone who takes refusal not as opposition, but as the beginning of a dialogue. I will consider today the day Redwood and we began a journey toward a long conversation. Then…”
After the Saudi party left, I turned to Warren and Harry with an incredulous expression.
“Wait… Do they think I’m going to accept their opinion someday?”
Warren laughed and patted my shoulder.
“Haha, calm down, Master. Most wealthy people are like that. It isn’t just the rich of the Middle East. The Chinese and Russian tycoons I’ve dealt with were all similar.”
“……”
“If anything, you should be happy.”
“Happy?”
“Doesn’t it mean Redwood looks valuable enough that they won’t let go of it easily?”
Beside him, Harry smiled and chimed in.
“That’s true. He must have been upset, but he didn’t show it at all. That means they don’t want their relationship with Redwood to deteriorate going forward. In other words, they’re being careful around you, President.”
“Ah…”
“Things have gotten easier now. They’ll probably work on another winery they had in mind as Plan B instead of Redwood. In the meantime, we just need to hand over 200 to 300 cases at a time and spread the positive image that this is a wine beloved by royalty. With that amount, there’s nothing they can do, so there’s nothing to worry about.”
“Couldn’t they become unreasonable and make things difficult for us?”
“I was worried about that too, but after seeing their attitude earlier, I feel relieved. It seems their superior truly liked Redwood’s wine. If their only goal had been acquiring an asset, they would not have behaved so gentlemanly.”
Only then did I feel a weight lift from my chest. It might be a little troublesome from now on, but when I thought of it as the kind of inconvenience a winery seeking stardom had to endure—like the daily inconveniences a top star had to put up with—I actually felt rather good.