Algodon in the Media, del Potro, and More…

Algodon Mansion gets a nice mention in this month’s Delta Sky Magazine! The write-up acknowledges our restaurant, menu, and accompanying estate-grown Malbec. Although, the restaurant details are a bit outdated…we’re happy to have made an appearance. Delta Sky Magazine reaches 5 million readers each month! Algodon Wine Estates is also featured in Area 3 Magazine, a widely distributed publication in Mendoza. The article, which discusses our newly established international wine panel, is unfortunately not online yet- but I’ll be sure to share it with you once it’s up. In the meantime, here’s a scanned photo from the magazine’s hardcopy.

Score another one for the Argentines! Juan Martin del Potro’s U.S. Open win was a surprise to us all, but I’m not complaining! Argentina is everywhere is sports news these days, and that only means good things for Algodon Wine Estates & Champions’ Club! Our new tennis courts and newly expanded 18-hole golf course are literally weeks away from being ready to play. I wonder how del Potro feels about San Rafael, perhaps we’ll see him at Argentina’s first Algodon Malbec Classic!…In other sports news, Argentina’s Rugby team, Los Pumas, have been invited to join the Southern Hemisphere’s Tri Nations. If everything goes according to the plan, Tri Nations will become “Four Nations” in 2012. While we haven’t any immediate plans to construct a Rugby field at Algodon Wine Estates, you never know what the future holds…2016 perhaps?

Our Executive VP & CFO is in Buenos Aires this week and sent the following email to us soon after his arrival: “I only had a couple of minutes today to see the Mansion, but WOW – it’s a MANSION - it just looks fantastic. A person working on every corner, and the progress is enormous. The stairs are in and some of the rooms are basically finished (without furniture). The kitchen crew is working in the kitchen and the light-well is truly the “show-off” center piece. No doubt we still have a lot of work ahead, but things look great. The master suite bathrooms are enormous and the quality is 100%.” He also sent us some new photo updates from Algodon Wine Estates, including this one of the tennis courts, which by the way are looking tremendous. Thanks for the update, Tim!

-- Scott Mathis

Argentine Interview, AM Update, More Media, and Wine News…

I hope everyone had a memorable Memorial Day weekend! For those Spanish speakers (or Google Translate aficionados) check out our interview with Los Andes online published this week (the interview can also be found at AreadelVino.com). Los Andes newspaper is a huge publication, analogous to the New York Times of Mendoza. In the interview we discuss among other things our Algodon Wine, a bit of our history, and the fact that we’ve already invested approximately $25 million in our Argentine properties. The interviewer also touches on the world-wide economic downturn and its effect on real estate developments. I have always been very clear about my optimism regarding the future of Argentine real estate, and that I believe in the importance of diversifying personal investments outside of the U.S. economy and the U.S. dollar. In one of my favorite exchanges, the interviewer asks to what extent our Argentine developments have been affected by the economic crisis:

Question: Did you have to lay off any staff due to the (economic) crisis? Answer: Actually we hired nine people in Buenos Aires for the mansion; a luxury hotel with a restaurant, bar, and wine cave- and two others for the hotel in Mendoza.

Gerhard Heusch emailed me this morning and once again confirmed that the scheduled Algodon Mansion opening date is still intact. They’re working very hard down there, and the work is going fast!

Algodon Wine Estates gets a tremendous write-up from Jim Bryant for Chicago’s (metro area) “Quintessential Barrington” lifestyle magazine. Mr. Bryant’s glowing descriptions of our estate, our wine, our amenities, and San Rafael- go beyond terrific. He also very favorably mentions our partners at Bombal & Aldao and Finca los Alamos.

In other wine news, The LA Times published an interesting article titled Findings of wine contest study hard for critics to swallow. From the article; “…consumers should not always assume that gold medal winners are outstanding wines…retired Cal State Humboldt professor Robert Hodgson said he looked at the results for more than 4,000 wines entered in 13 U.S. competitions in 2003 and found little consistency in what wines won gold medals.” Our Master of Wine, Antony Foster, followed up on this in an email to me. For the most part, he indicated that he’s in agreement with the article, and that he thinks it would be in our best interest to enter our wines in reputable competitions run under international rules. Good advice.

--Scott Mathis

Algodon Wine Sales, Our Neighbors, and a Gold Medal!

Our Chicago area wines sales are looking good. This week I spoke to our Midwest distributer, Jomada Imports, and was told that we’re selling on average 150 cases (12 pack) of Algodon wines on a monthly basis…that’s 1,800 bottles a month. That’s a nice start considering that Algodon Wines are new to the US market and its consumers. Keep up the good work Jomada!

Our neighbor next door to the Algodon Mansion recently finished some exterior construction. It looks good and is a big improvement on what was there previously.

Big olive oil news! Diego Coll Benegas, Algodon Wine Estates’ Director of Project Development, Tourism & Hospitality, just emailed me to say that Algodon Olive Oil won the gold medal in a national competition hosted in Buenos Aires this week. Our gold medal was for the “blended” category. That’s exciting news. I’ve had the olive oil myself, and I have to say that a gold medal comes as no surprise to me. I guess we’ll have to reprint our olive oil’s bottle labels to include: “Argentine judges agree: Algodon Extra Virgin Olive Oil is the best!” We will be serving Algodon Olive Oil at Algodon Mansion.

--Scott Mathis

Algodon Pool Tiles, Clerc for ESPN’s Open Coverage, and Media Mentions…

Get ready for blue tiles and sun- and bring your bathing suits! Algodon Mansion’s rooftop pool will soon be ready! We just received a very special shipment of SICIS mosaic tile, which has been imported from Italy, and our contractors will immediately begin laying the surfacing tile. We’ve all been looking forward to this stage of construction on our roof, as it’s the literal icing-on-top. Algodon Mansion’s pool terrace will also feature teak decks and poolside loungers, as well as an intimate open-air bar and lounge.

Anyone who knows me knows that I love tennis, so it will come as no surprise that I am excited about the US Open here in New York. Even more so because our own José Luis Clerc (Algodon Wine Estates’ Ambassador & Director of the Clerc Tennis Academy) will be covering play-by-play analysis for the Spanish-speaking audiences of ESPN International and ESPN Deportes. Algodon properties gets yet another media mention; Examiner.com’s J.S. Fletcher has given both Algodon Mansion and Algodon Wine Estates a nice write up in this week’s issue, which you can check out here.

In wine news, WineSur.com reported this week that Malbec exports have increased significantly this year. We already know this, of course, because we’ve been hearing about it for the last six months; however WineSur provides a chart detailing Malbec’s major importers. The U.S. is in first place with a whopping 52% of the pie chart.

--Scott Mathis

Tennis Courts, AM staff, Chez Nous…

We’re seeing some great progress on the courts! They’re ready for play, and as you can see from the photo, they just need a net and some fences. The Algodon Malbec Classic, hosted at Algodon Wine Estates of course, is not far off…

Algodon Mansion is also really looking great; I was down there last week. Our management team did a great job of interviewing candidates for the hotel and kitchen. Some of our new hires are from one of my favorite hotels in Recoleta. This is an experienced group that will represent Algodon Mansion well.

I spoke with nearly everyone here and we have all decided to rename (or name; since we never officially decided on one) the mansion’s restaurant to “CHEZ NOUS,” which means “OUR PLACE” in French. Our Buenos Aires crew really likes it and how it works with the property and the concept! The menu at CHEZ NOUS is complete as well, and I believe everyone will love it. We are currently having an English translation of the menu prepared, which we’ll share as soon as it’s finished.

All in all, there has been substantial progress on Algodon Mansion. With most of the larger projects complete, we are now primarily just working on the little details. Everyone down there is working very well together, and they (as much as us in New York) are all very excited to see the finish line and a finished product in the very near future...

The Argentine Post directs us to a nostalgic YouTube video of Argentina’s early years. The 1932 travel newsreel is a classic Metro-Goldwyn-Mayer presentation. As I was watching the video, it struck me that this was the same period in time when José Jurado was first making a name for himself in the international golf world.

--Scott Mathis

Louis Vuitton, New Cigar Bar, and Canned Truffles…

As I mentioned in my editorial from the most recent “The Algodon” newsletter (and it certainly bears repeating here), Louis Vuitton and Algodon Mansion will be partnering in a joint marketing campaign of sorts, where the French fashion designer will organize a celebrity photo shoot in one of Algodon Mansion's Algodon Royale Suites. We are also scheduled to host private showroom events for Louis Vuitton’s “top buyers” in our restaurant, and possibly in our suites, in the future. We’re very excited to be working with such an esteemed name and talent, and we hope this is the beginning of a lasting relationship.

Evidently the Alvear Palace is opening its own cigar bar. What a great idea; the more the merrier, I say. This beautiful hotel is Algodon Mansion’s neighbor; it is a Buenos Aires staple and has a great reputation of high-end elegance and sophistication. It represents the kind of old-school luxury and hospitality that is so popular in Europe, and which is also very indicative of Recoleta.

With all the Algodon Wine Estates truffle news in recent days, I was happy to stumble upon this consumer website from a Beverly Hills retailer of truffle and gourmet products. This 7 oz. can of truffles retails for $57 USD. That’s not even for fresh truffles; it’s for canned truffles. I think we’re headed in the right direction…

The Financial Times published a great travel piece titled Old Europe in Buenos Aires, which covers a host of tourism attractions and historic places you may be familiar with from visiting there yourself. From the article; “I think Buenos Aires must be the last remaining European city,” a Viennese friend once remarked. Time and distance have left people here with hazy romantic memories of the Europe they left behind.

--Scott Mathis

Property Updates, Delta Air, and chilled Malbecs and more…

I received some tennis court update photos from our hard working crew in San Rafael. All I can say is wow!

I think this is the first time I’ve ever actually seen a tennis court constructed from scratch. The speed with which this is moving along is very impressive. You can really get a sense from this photo of how unique our tennis center will be; set right in the middle of a beautiful 50 year old olive grove. It’s really going to be an amazing place, and we look forward to our guests playing on those courts in just a few short months!

I also received a great Algodon Mansion update from Gerhard Heusch. The glass for the six-story lightwell (which will include a waterfall descending to the lobby) is now being installed. Here’s picture of them working on it:

This aspect of the Mansion is very unique. Each suite has either door or window access to the lightwell, which offers sky views.

Good news for us in NYC: starting mid December of this year, Delta Air Lines provide flights between New York's John F. Kennedy International Airport and Buenos Aires, Argentina! The flights will operate five times a week!

The Washington Post’s recent article titled “Ah, a Cold, Refreshing ... Red?” talks of the surprising joys of chilled Malbecs on a hot summer day. From the article; “Malbec is very much the red wine of the moment, responsible for a stunning surge of imports into the U.S. from Argentina…Malbec has spicy, black-pepper tastes and we really weren’t sure ourselves how well it would stand up to a chill. The answer: fascinating…With a steak right off the grill or a rare hamburger, it would be hard to beat this taste on a hot day.”

I also found two articles this week regarding the U.S. debt and the weakening dollar. The first is from Yahoo! Finance, and the second The Washington Post. Both are worth the read as the country prepares for next year, and on. This is what I have been saying all along, it is prudent and timely that investors diversify outside the U.S. economy and into global assets. The dollar is still strong against the peso, and Argentine properties remain undervalued.

--Scott Mathis

Algodon Wine Estates updates, and other news…

Here is a preview of what our tennis courts may look like after construction is completed in just a few short months. I came across this photo in my email archives, and wanted to share it. These courts were built by the same contractors who are currently building ours. It’s exciting to try and picture. Obviously ours will look even better than this with our Grand Center Court that seats nearly 700 people and is sunken into the ground for panoramic views from above. We’ll also have 8 clay courts, 2 grass courts, and 1 hard court.

Rubén Barsamian sent me the next photo earlier in the week. It shows one of our contractors leveling the courts. As I may have mentioned before, except for the Grand Center Court, as of today the land has all been leveled:

I also received photo updates on the two new reservoirs on our (recently expanded) golf course this week. Here you can see that they have lined the pond in anticipation for its filling:

Very exciting, and all of this will only add even more value to our already remarkable estate.

Earlier this week the New York Times ran this piece on the revitalization of the Barracas barrio in Buenos Aires. This neighborhood is experiencing “spillover rejuvenation from neighboring Puerto Madero and San Telmo, two areas that have benefited from a rise in tourism and a real estate boom. Barracas, near the city’s old ports, means barracks or warehouses. Long since abandoned, many warehouses are being renovated into luxury housing…” Sounds like the “Soho effect”. I’d be curious to know if the article had any immediate impact on real estate sales for the area. I’m betting it did…

--Scott Mathis

Polo, Dakar, GM bailout, and Art…

Hola! Nacho Figueras explains the rules of polo in Vanity Fair Magazine. In case you don’t know, Nacho is synonymous with Argentina polo. Nacho was recently our guest for a wine tasting and cocktail reception at Algodon Mansion. (pictured from left to right: Nacho Figueras, Me, Luisa Aldao, German Neuss, Camilo Aldao, and Nacho’s lovely wife Delfina):

Last weekend he and Great Britain’s Prince Harry played the Veuve Clicquot Manhattan Polo Classic, a celebrity attended charity match at New York’s Governors’ Island. The competing teams were Black Watch and Sentebale, and the British team won 6-5. This brings to mind the construction of Algodon Wine Estates’ own twin polo fields scheduled for completion next year. Polo is very big in Argentina, and our Champions’ Club will feature only the best of these types of facilities.

As I mentioned in an earlier post, the Dakar Rally will return to Argentina in 2010. The map of next year’s route is now available online, and it indeed runs right through San Rafael! What a great publicity and promotional opportunity for the city, and in turn Algodon Wine Estates. As you can imagine, the hotel was also fully booked when the rally came through earlier this year.

Argentina’s President Cristina Fernandez de Kirchner announces that the country will use $70 million of nationalized pension funds to provide General Motors (Argentine unit) with a loan to help the automaker finish work on a new car model. Finally, here’s a CNN video link to a report on the Buenos Aires International Art Fair (aka “ArteBA”), which has been called “the hottest art event on the planet”. One gallery owner interviewed explains how the combination of Argentina’s weak peso and the world-wide economic downturn is presenting lucrative opportunities for the county’s artists. Evidently savvy international collectors have realized that Argentina offers world-class pieces of art for unheard-of prices, and they are loading up on these great deals. That’s called “getting in when the getting is good” and similarly-minded people are doing the same with real estate there, obviously.

--Scott Mathis

Much in the news!

I have a lot that I’d like to share with you from a news-filled past week. Our San Rafael Wine Estate appears in New York Magazine’s Special Wedding Issue (honeymoon section), available on newsstands now…and Algodon Mansion’s General Manager, Pablo Veloso, also sent me this pickup of Algodon Mansion in Air France Magazine. You can read more on both of those in the June issue of the Algodon Newsletter.

I came across an interesting article in The Washington Post last week about sommelier Mark Slater (a James Beard Foundation award-recipient for his outstanding wine program) who, when asked what his top seller is, says (a particular brand of) Argentine Malbec; "That stuff flies out of here….I sold 15 cases in a week!" On that topic, a recent WineSur.com article talks about the great potential for Argentine wines in the Asian markets. Evidently reasearch says that fine wine consumption in this sector is expected to grow by 79.3% in the next two years. That’s a remarkable number- the population in China alone is 1.3 Billion.

Here we have good news for you racing fans; AP is reporting that Argentina may be hosting a Formula One race next year, probably in Buenos Aires. Be sure to book your rooms at the mansion.

In anticipation of the French Open, The Wall Street Journal ran this fun tennis piece about the joys of playing on a clay court; “Increasingly, some of the game’s best coaches and tennis officials —even in the normally clay-allergic United States —see mastering the dusty red stuff as crucial to achieving all-around greatness.” Ask anyone who knows me and they’ll tell you that I am a huge lover of the game. I’m looking forward to playing on our clay courts, as well as each of our 2 grass courts and our sunken Grand Center Court that seats nearly 700 people. By the way, here’s a photo taken last week of the land being cleared for the courts’ construction:

Hope everyone is enjoying the nice weather!

--Scott Mathis

Algodon Mansion Update!

Here is a nice update from our architect, Pedro Lagleyze, on the construction progress of our Buenos Aires luxury hotel:

“Scott - As we expected, on Wednesday afternoon we met on the worksite with Gerhard Heusch and the construction company to determine what to do with the existing marble cladding. We came to the decision that we will maintain the existing work and make some adjustments. We also took this opportunity to resolve several outstanding issues.

Regarding current progress, the balance of work form our new main contractor is more than positive. Much progress has been made toward the finishing stages (floor carpentry, equipment carpentry, painting, etc.) during this week, and will continue through the next.

Currently, marble work has been completed on the upper floors and the stucco work is moving along quickly. We’ve already started the wood flooring work, and the painters will come next week. In the spa, we will be working on the completion of the roof in the coming weeks. The marble work is finished there, and the stucco will start this week.

In the basement, work in the service areas is almost finished and the toilets and plumbing are already functional, as are the changing facilities for the staff. Regarding the kitchen, I suppose you're aware of recent changes requested by the chef. Next week we´ll get the final design in order to modify and finalize this sector once and for all. In relation to the area of public bathrooms and offices, once Gerhard and the contractors define the design of the marble, we will be in position to start the task and prepare the site for the arrival of the metal ladder.

The ground floor, as usual in this type of work is more concerned with the general movement of the work. Yet we are moving strongly in its final configuration. In that sense it is very important to define the ceiling to use. The elevators are up and running and only lack the interior design for its implementation.

The façade is finished on the upper floors, and the ground floor work will begin to take place in the coming weeks.

We are working hard and continue with the aim of finalizing the work for August. If we achieve this objective, the balance will be two years of work at a cost per square meter of USD $2,500. Not bad for our unique product in this market. - Pedro Lagleyze, Arquitecto”

Sounds like things are rolling along nicely! We’re almost there…

--Scott Mathis

Malbec scores, more Malbec, Cabrera, BA, New York Mag...

Great news! Anthony Dias Blue, in association with the James Beard Foundation, rates Algodon Wine Estates 2004 Malbec with a score of 90 points! Mr. Blue is one of the most influential food and wine personalities in the U.S., and his media reaches an audience of more than 30,000,000 global consumers each month. The review will appear in the next issue of The Tasting Panel Magazine’s “Blue’s Reviews” section, where every month Mr. Blue tastes approximately 500 wines and chooses the best 35 to publish his reviews of. I’ll be sure to repost the web address once it’s up. In the meantime, you can read more about Mr. Blue’s broadcast and media affiliations here.

From The Washington Post, here’s another great article about Argentine Malbec; “Ask a retailer or restaurant sommelier which wines are most popular today, and one of the first answers you're likely to get will be…Malbec from Argentina. Ask which wines over-perform for their price, and you'll probably get the same answer.” The author of the piece, which is aptly titled “Argentina's Andes Advantage”, specifies three main ingredients for the success of the Argentine wine; value, quality, and altitude. That’s what we’ve been saying all along, but what they fail to mention is that San Rafael’s district of Cuadro Benegas- where Algodon Wine Estates is located- provides unparalleled soil quality that is ideal for growing red varietals such as Malbec and Bonarda. In case you missed it in the last newsletter, here’s an informative elaboration on that topic written by Algodon’s Winemaker, and Director of Project Development, Tourism & Hospitality.

With Angel Cabrera’s major title win at the recent U.S. Master’s, he has singlehandedly brought the words “Argentina” and “golf” together in many a conversation around the world. I believe his win will prove to be good news for us and our 18-hole championship course in San Rafael, as well as for Argentine golf in general. As many of you already know, Cabrera is the first Argentine- let alone the first South American- golfer to win the Master’s; considered by many to be golf's most prestigious tournament. Here’s a recent article in TWP that describes his homecoming.

Reuters recently published an article headlined Some pick Argentina as haven from economic blues, which specifically talks about the younger generation – people in their 20s and early 30s - moving to BA for its financial benefits; “Buenos Aires, a sophisticated, European-style capital in South America that long has been popular with savvy tourists and artistic bohemians, is now a haven for some young adults from Europe and the United States who find their savings go further here…”

On a similar theme, New York Magazine’s Real Estate section asks “What If You Left New York?”: “New Yorkers have a special affinity for the similarly cosmopolitan lifestyle of Buenos Aires, where real estate is cheap and the weather is currently 70 degrees and sunny.” The piece compares real estate prices for the two cities – specifically BA’s Avenida del Libertador vs. NYC’s Fifth Ave., saying; “For a comparable apartment here, you’d have to pay eight times as much…” This of course puts me in mind of our own comparison from a few months ago of Algodon Mansion vs. Manhattan’s Upper Eastside mansion.

--Scott Mathis

Manhattan Crush Fest!

Our Mendoza Crush Fest event that took place at City Winery went very well. The place was packed with over 700 attendees. Wow. Over 30 wineries participated, but Algodon Wine was the star attraction and was a big hit I’m told. The fact that New York Magazine and DailyCandy.com both plugged our event (here and here), I’m sure had a major impact on ticket sales. Even Cindy Adams, the New York Post’s gossip columnist, gave Algodon Wine Estates a mention in her column for the event. (She also visited Algodon Mansion recently for a preopening tour of the property, and I hear she loves the project…) In case you missed our New York event, it was a very special occasion as we’d shipped over six tons of our grapes to Manhattan in order to be pressed into wine right here in our city. The all-day celebration included a feast of Argentine food and music, dancing, Algodon Wine, and many of our friends and industry associates. I also discovered this blog called WinedAndDined.com which mentions the event, our wine, and our San Rafael estate- all in one entry. Sounds like they had a good time too. Here we are in WhereToGoNext.com- and as of today’s post, media coverage for this truly unique event is still trailing in.

In today’s news, The Wall Street Journal reports that “Argentine bonds posted solid gains Tuesday on improving prospects for emerging market debt, while bank shares surged on the bond gains.”

In other news, Reuters is reporting that President Cristina Fernandez announced Argentina's economy will grow again in 2009. I like her confidence. Incidentally, Argentina’s economy was one of the fastest growing in the world for the past several years up until our global recession.

Also in Reuter’s (Reuters Life!), it’s mentioned that Forbes.com lists Mendoza once again as a “Top 10” travel pick. Apparently we’re in the right place at the right time.

--Scott Mathis

Malbec & Buenos Aires Restaurants

Two articles that I recently stumbled across are worth pointing out. Once again we see praise for Mendoza and its signature grape, Malbec. The first piece comes from the Guardian.co.uk - it’s more of an editorial- titled Argentina is giving malbec a good name. The other appeared in the Chicago Tribune, and is titled Malbec’s star turn.

In another article from the not too distant past, The Washington Post did a feature on an American expat now living in Buenos Aries, Layne Mosler. She’s a freelance food writer and columnist for South American Explorer and a regular contributor to Time Out Buenos Aires. Here’s her unique angle: She’ll hop in a Buenos Aires cab, ask the driver to drop her off at his (the driver’s) favorite restaurant, and then she’ll eat there and write a review of it. She considers this the best way to learn about all of the hidden, great places to eat in the Argentine capital. If you’re visiting Buenos Aries and looking for an insider’s scoop on where to eat, check out her blog at www.taxigourmet.com. It’s very interesting.

--Scott Mathis

Just got back from Algodon Wine Estates…

I had a nice visit in San Rafael last week. A lot great things are happening now; our Director of Project Development, Tourism & Hospitality, Diego Coll Benegas, had lunch with the president of Argentina, Cristina Kirchner, at the Bodegas de Argentina Annual Harvest. He was there representing Algodon Wine Estates, and his invitation to the event was an honor to our project. It says much about our standing as a significant presence among Mendoza’s best and most well-regarded wineries.

While I was there, we also had an exciting groundbreaking celebration for the Algodon Wine Estates/Clerc Tennis Academy. It was a great day for everyone. There was a big turnout with local press and a literal who’s-who of municipal and local government figures that came to show their support. José Luis’ is always very generous and gracious with his fans, and his celebrity always brings out scores of admirers at these events, which is great for our public relations.

You can read more about both of these events in the Algodon Newsletter, which should be out next week or so.

--Scott Mathis

Algodon Wine Estates - Tennis Complex Update

José Luis Clerc is very enthusiastic about the prospect of bringing a challenger tournament and tennis clinics to Algodon Wine Estates in the fall, which of course would be welcomed publicity for us as well. An updated preliminary layout of the courts has been designed and includes the following; the tribunes of the sunken center court will be on all four sides in order to accommodate more people, and a row of six tennis courts in the south will be constructed first. José Luis wants to use the two on the west side as training courts, one set of double courts shall ideally have lights, and we need to provide access pathways to the courts. José Luis thinks that the grass court would be a big attraction and will lend a lot of credence to Algodon Wine Estates, and since we have the experts and machines to do a grass court, he recommends doing this right away. This is going to be a very busy summer. I’m impressed with how quickly construction has moved at Algodon Wine Estates; new construction seems to get done almost overnight sometimes. Big changes are literally right around the corner. -Scott Mathis

AWE in USA Today & Argentine Wine Imports Are Up!

In case you missed the announcement in our newsletter, we made a recent appearance in USA Today and a few others notable publications including DailyCandy.com, The Buenos Aires Times, MSNBC.com, and The Tampa Tribune. I try my best to keep this online journal as updated as I can regarding these media mentions, and it pleases me to say that some months it’s difficult to keep up because there are so many to report. A great article was forwarded to me recently, in which a California wine importer has reported a 34% increase in Argentine wine imports; “For the last 10 years, we’ve watched the demand for Argentine wines grow year after year…” You can read the full article here. I find articles like this almost on a daily basis. They all seem to say the same thing over and over; which is that despite the global economic slowdown, the Argentine wine industry is booming in the U.S.

Congratulations AWE staff on a job well done!

I am very pleased and excited to announce our progress on Algodon Wine Estate’s 18 hole golf course. Our staff in San Rafael has been doing an incredibly commendable job, and the work is now officially complete! Pumping stations, sprinklers, and irrigation are fully operational and in precise working and automatic order, and the seeding was completed yesterday. We also acquired three brand-new John Deere tractors for use in our vineyards and for our golf course maintenance. Once again, congratulations all, and a special thanks to Rubén Barsamian - Algodon Wine Estates’ Director of Finance & Administration. See you all on the golf course - Fore! -Scott Mathis

New York Wine Expo

Wines of Argentina recently requested that we join them in their display tent at the prestigious New York Wine Expo, and they’ve also asked us to participate in a showcased tasting that will take place there called “Argentina's Unparalleled Malbecs.” If you’re in town during the event (Feb 27th & 28th); stop by the Jacob Javits Center and come sample our wine. - Scott Mathis

More Media Mentions for Algodon!

Algodon Wine Estates had a nice mention in the December ’08 issue of Palm Springs Life in an aritcle called “Wine - Making It Personal (Dig in and taste the winemaker’s life)”. Click here to read the article. The article also mentions our wine barrel program and specificlly talks about other projects or developents that are similar to ours. The closing sentence of the article is great; “All of these options cost a lot less than the millions it takes to open a traditional winery. And…‘It’s fun.’”

We also get a fun Algodon Mansion mention in the January issue of Continental Airlines in-flight magazine. The December issue of the same magazine also features a great article by Ian Mount titled Capital Gains, which is very much worth the read- I highly recommend it.

--Scott Mathis

New Wine Labels, New Media Articles

Our new wine label designs have been finalized, and they look great. We will be utilizing them on all of the wine bottles from now on. There is a significant difference between the new labels and our previous ones in that we have chosen to discontinue the “Viñas del Golf” name and design in the marketing of the wine, and strictly use the Algodon Wine Estates branding from here on out. The Viñas del Golf name and logo will still represent the resort itself, however we wanted to establish a clear and distinct difference in the marketing of our wine and winery.

There is a great article on WineSur.com regarding the surge in popularity and recognition of Argentine Bonarda; “2008 could be remembered as the year of the ‘re-discovery’ of Bonarda”. You can read the full article here: Bonarda: a new Malbec? While on the subject of WineSur, we’re also mentioned in a recent online article regarding Argentine wine tourism here: Wineries renew programs to attract tourism. Both articles are good reads, and the latter addresses the concern of 2009’s potential decline in tourism numbers, and our strategy to combat that possibility.

- Scott Mathis

Happy New Year!

I hope everyone and your families had a great New Year’s Eve! 2009 is setting up to be a spectacular year already. Algodon Mansion is opening, we have new wines and labels, the opening of our 18 hole golf course, a future polo field…and the year has barely even started. Let's get busy, and stay busy! Happy New Year! By the way, I received an email from a colleague vacationing at Algodon Wine Estates over the holiday, which I’d like to include a passage from; “Scott, I am here in AWE – so beautiful! Today there were quite a few golfers, people eating in the restaurant, taking tours of the winery etc. I am doing the Ruta del Vino & checking out Mendoza tomorrow…” That was a good email to get, and a nice way to start the year. Have a great 2009! -Scott Mathis

Press for Algodon

Hello Everyone! Another great press article on Algodon is hitting the newsstands. We’re seeing a lot of these lately. Be sure to pick up a copy of December’s Robb Report Vacation Homes featuring Algodon Wine Estates! They wrote a nicely done, full page article on us. We’ve also received mentions in Food & Wine Magazine, Black Book, Forbes- Life EW, Tennis Week, and many, many more. Go Algodon! Thanks to everyone for your support and confidence. Without your help, we could not achieve.

Algodon Wine Tasting in NYC

We had a great turnout at Union Square Wines. There were about 100 people who attended the event. Thank you all for coming! It was a very successful night, and our guests of honor from San Rafael, Mendoza included our partners at the Bombal & Aldao Winery, Camilo Aldao and his wife Luisa; as well as our terrific winemaker, Mauro Nosenzo; and our Director of Project Development, Tourism & Hospitality (Algodon Wine Estates) and Head of Food & Beverage (Algodon Mansion), Diego Coll Benegas. Camilo got up to address the crowd, and was very personable. As for the wine; crowd favorites, so I’m told, seemed to be the Cab/Syrah, and the French Oaked Chardonnay. However I’m particularly partial to the Bonarda, myself. Click here to watch a video picture album of the night’s highlights.

I just received a wonderful email from Camilo, who said that our 2008 harvest is an outstanding one and that we can expect an exceptional Malbec, in particular, after its oak barrel aging. We are also moving forward with a strategy to cultivate and create the best wines our wineries have ever produced by including the utilization of the highest quality casks, optimum grape selection, and getting rid of anything that is not perfect.

Mass Group PR

I’m pleased to announce that we’ve also recently signed on with Mass Group PR, arguably Argentina’s most noteworthy Public Relations firm. I believe that working in conjunction with New York City based WEILL and Buenos Aires based Mass Group PR, who have access to specific media, publications, and target-audiences primarily in the US and Argentina respectively, we will be coordinating a strategic consumer and industry buzz in anticipation for Algodon’s introduction to the general public. It’s very exciting to watch this all unfold. Mass Group’s impressive client list includes the likes of Disney, Master Card, American Express, Ford, Mini Cooper, Motorola, Adidas, Lacoste, Kiehls, Converse, Louis Vuitton, L’Oreal, Valentino, Escada, Diesel, Stella Artois, Evian, Campari, Absolut Vodka, Johnnie Walker as well as the hotels Sofitel, Cipriani Resort, and Alvear Palace. Mass Group also covers BAFWeek; Buenos Aires’ prestigious fashion week. Mass Group PR will be spearheading the Argentine campaign for the launching of Algodon Mansion and Algodon Wine Estates, as well as for Algodon the brand itself.

Wine Fair

Our general manager at the Algodon Mansion recently attended an annual trade show event for tourism and travel professionals in Porte de Versailles, Paris. The event is called “Top Resa” and it’s a great opportunity for networking, exposure, and general PR.

Here’s a link to an article about the event in our newsletter: http://www.thealgodon.com/events/20080901c

Speaking of which- this is a great opportunity to introduce you to our new “The Algodon” newsletter, if you haven’t already seen it. The online news source was created to keep our investors and friends updated with the most up-to-date info on all of our exciting progress. Check it out if you have a minute: http://www.thealgodon.com/index

Weill PR

We recently started working with a New York City based Public Relations firm Geoffrey Weill Associates, Inc., who specialize in the fields of tourism and travel. “WEILL”, as I believe they prefer to be called, are a good group of people with many ties in the media. We are proud to have WEILL on our team, and we look forward to building a relationship with them and benefiting from their vast network affiliations with the “who’s who” of tourism and travel industry insiders. Top clients include Aman Resorts, Taj Safaris, Dan Hotels, Berlin’s Hotel Adlon Kempinski, and Chicago’s Elysian Hotel, and can be found in over 70 cities world-wide including London, Paris, Moscow, Rome, Jerusalem, Dublin, Cape Town, Istanbul, Beijing, Machu Picchu, and Delhi to name a few. WEILL has been the recipient of over 50 Golden Bell and Adrian Public Relations Awards (some of the PR Industry’s most prestigious honors) presented by HSMAI (Hospitality Sales and Marketing Association International). Welcome aboard WEILL.

José Luis Clerc

As I’ve mentioned in an earlier post, we’ve partnered with José Luis Clerc, who happens to be one of the most recognized and revered professional tennis players in Argentina’s history. He will be promoting Algodon Wine Estates’ tennis center, and will also be overseeing the construction and design of the tennis center’s courts, clubhouse, and the overall tennis program itself. His official titles are Director of the José Luis Clerc Tennis Center (at Algodon Wine Estates), and Ambassador of Algodon Global Properties. The latter title is appropriate since he will also serve as a public relations conduit and provide his personal and professional international contacts with the goal of developing tennis exhibitions with former and/or top world players and futures tournaments to be held at Algodon Wine Estates. The fact that José is a very personable gentleman combined with his impressive place in the history of tennis truly makes him a uniquely qualified individual to represent our Algodon brand, both on and off the court. His player’s history can be found here on Wikipedia. José began playing professionally in 1977, and won 25 ATP Titles, and retired in 1988. His highest rank was World No. 4 in August 4, 1981, following a run of 27 victories and 4 titles in one month, and had year-ending rankings 8th in 1980, 5th in 1981, 6th in 1982, and 8th in 1983. José represented Argentina for the Davis Cup from 1976 to 1989. He currently runs a tennis school in Argentina was recently a featured commentator for ESPN Latin America’s coverage of the 2008 US Open.

A Fitting Compliment

I truly feel that Algodon Wine Estates, as a resort and vacation experience, is the perfect complement to Algodon Mansion, because it will offer guests the ability to round out their Argentinean experience with the flavor, flair and excitement of Buenos Aires- and the relaxation of a unique wine and golf retreat situated in the majestic beauty of the Andean foothills. What could be better? It’s exciting too, because I feel that each property serves to create a built-in demand for the other; they’re a great combo. Perhaps more importantly though, I believe that each property will also stand independently as a destination draw from a wide range of international and domestic visitors. When I reexamine the Algodon tag; “… Algodon conjures a clean and pure appreciation for the good life, a sense of refined culture, and ultimately a destination where the best elements of the illustrious past and the affluent present meet.” - I find these qualities are exemplified by a few pastimes, and notable among them would be the appreciation of fine wine and the pursuits of golf and tennis. The link between wine and golf is so fundamental that a feature article was recently published that explores this connection. It’s a fun read. See Travel and Leisure Golf, March/April 2007, Reds, Whites and Greens See you next week. In the meantime, have a great week! --Scott Mathis

Algodon Brand

I’ve recently been asked to talk a little bit about the name idea for the Algodon, so I’ll do that today. My original goal was to create a brand name of distinction, refinement and elegance- a name which conjures “a clean and pure appreciation for the good life, and a sense of refined culture.” Obviously, that’s a big order. So after much careful thought, we decided to run with the word “Algodon,” which means “cotton” in Spanish. Though my Mississippi grandparents were cotton farmers at the start of the 1900s (“when cotton was king!”), for the most part I initially associated the word with the Cotton Club days of the Roaring 20's, and even that sophisticated glamour so often associated with the 50's "Rat Pack". This was a time when travel and leisure were synonymous with culture and sophistication, and that’s the feeling I was going for. My desire is to make Algodon- both as a brand and as a destination- the modern day equivalent in an active, global lifestyle, and ultimately “a destination where the best elements of the illustrious past and the affluent present meet.” Above I’ve quoted some of the language we used when initially defining our brand identity, and I think the language that we came up with worked really well for us.

Bottom line, the Algodon brand represents a lifestyle. My goal and my company’s goal is to continue seeking out distinguished properties which encapsulate old-world charm and sophistication, and to refurbish them with modern day service, technology, and amenities.

I’ve been asked if I am looking to create a hotel chain. The answer is no. I prefer to think of this as simply a collection of exclusive properties within Argentina, which operate under the Algodon brand. And who knows? From there we may expand into other leading cultural cities of the world. But let’s not get ahead of ourselves…

My Trip to Buenos Aires

When I arrived in Buenos Aires in 2003, it was common knowledge that the economy had recently suffered a debilitating blow, that the country had defaulted on its national debt and that the unemployment rate was soaring. Since I am by nature a contrarian, this was part of my motivation for going. Although my expectations were somewhat tamed by media coverage about the economic and social problems, I had hoped to enjoy the city’s charms and the value of its currency which had devalued by about 70% from its previous level. In fact, I was “wowed” to find a vibrant world-class city, full of sophisticated, well-dressed and happy people, historic beautiful neighborhoods with lush green parks and public monuments, wide-open boulevards lined with buildings boasting some of the finest architecture I had ever seen. I was also enthralled with the great shopping… markets…. music…. dancing…. wonderful food, wines and entertainment. I knew then why they call Buenos Aires the Paris of South America, at a third of the price here in the States and an even larger value discrepancy in comparison to the major European cities.

My enchantment with the city prompted my interest to learn more about the local real estate market. The more I learned, the more convinced I became that there was a huge opportunity, that prices were extremely low compared to other leading cities and with the economy and tourism rebounding strongly, many elements of risk had already greatly subsided. I was determined to take action.

But that’s enough for today. Next time I’ll be talking about how my vision has indeed been realized by my companies (InvestProperty Group and DPEC Partners) in the creation of a luxury boutique hotel (“Algodon Mansion”) in Buenos Aires, and then later a very beautiful wine and golf resort (“Algodon Wine Estates”) in San Rafael- the southern heart of Mendoza.

Life is good!

-- Scott Mathis

My First Entry

Here we go- my first blog entry. I’ve been asked by several friends and coworkers; “What’s possessed you to write an online diary?” So first off let me say, a daily “diary” is certainly not my intention in creating this journal. I’m not here to talk about what I had for breakfast this morning (delicious as it was.) I’d like to think of this as a way to share my personal knowledge and experience regarding current and timely investment opportunities with my friends, family, clients and partners. This is also a great venue for me to keep those same people informed of my companies’ latest endeavors as well as the evolution of our projects.

As many of you know, I’ve taken a particular interest in Argentina’s real estate market, specifically Buenos Aires and Mendoza, after remarkable investment opportunities were made available due the country’s economic crisis several years ago. And though these opportunities have been much publicized, I’ve still been asked; “Why? Why Argentina?” I would like to say that my black box, which is fed with copious amounts of charts and data, issued a proclamation that the time was ripe to enter the real estate market there. However, things don’t normally work that way, at least not for me. My determination to enter this market really began as a personal journey, a tourist visit to Buenos Aires in fact, and was gradually transformed by my experiences and what I witnessed firsthand, into a determination to pursue a vision. So, while in the past few years there has been a lot of positive media coverage relative to Argentina’s real estate market, there is a big difference between words and action. Hence, I have used my conviction to take action and enter this market and am currently in the process of turning my vision into what I feel will be a profitable business and investment opportunity.

Next week I’ll tell you a little bit about my first visit to Buenos Aires, and what specifically it was that really clarified my vision and opened my eyes to the amazing opportunities Argentina offers its investors.

Until then…

-- Scott Mathis