LETTERS.

Kendall-Jackson defends investment

I READ WITH INTEREST YOUR ARTICLE "Coming of Age" on Mendoza, Argentina's wine business (July 1999), but I must take issue with the following statement: "Kendall-Jackson may have been poorly advised in acquiring some of the highest land in the district--at 1,400 meters above sea level--with little water." Allow me to state the facts:

Kendall-Jackson's property in Tupungato is at 1,200 meters. The water that we have is sufficient for our long-term agricultural plans in that area (about 160 acres soon to be under vine). We are currently building a million-liter winery on another piece of property near by and expect to be producing our brand Tapiz there by the beginning of 2000.

We do not honestly consider that we were poorly advised in the purchase of our land in Tupungato. While this land maybe high in altitude compared to norms in Mendoza, it is comparable to other vineyard land in parts of California and the world. With a large surplus of land, Mendoza's agriculture has always shown a preference for the low land valleys compared to hillsides. A company that purposely chooses land off the valley floor will be evaluated by locals in the context of local norms.

Furthermore, the reason that Tupungato is being called "the next Napa Valley" by your article is largely due to Kendall-Jackson's investment in the area. Many "me-too" wine companies swiftly followed our lead. It is our pioneering effort in purposely selecting new, unproven vineyard land around the world that often makes what we do controversial.

While your article portrays Tupungato as the next big region for wine grapes, it is quite probable that other areas in Mendoza province will prove to be even better That is why Kendall-Jackson has not one but three distinct properties in Mendoza and is keeping each piece relatively small in terms of its overall development.

Your primary source seems to have been Mr. Reina, a grape producer in the Tupungato area. As I do not know Mr. Reina personally, it would appear that the information he gave came to him secondhand. Your publishing his comments about us without asking for our point of view or checking your fact seems journalistically irresponsible.

I look forward to more reporting on Mendoza's wine region. As you say, it is the fourth largest in the world in terms of production, ahead of the United States, Australia, and South Africa. Maybe next time, it will get the kind of balanced, informed reporting it most truly deserves.

Kirk Ermisch

General Manager

Kendall-Jackson Argentina

Editor's Note: While Mr. Ricardo Reina was quoted prominently in the story, approximately two dozen sources were consulted during several visits to the Mendoza region. As for Kendall-Jackson's unconventional approach, we wholeheartedly invite the company to keep us posted on the results and send us lots of free samples.