Issue link: http://winesandvines.uberflip.com/i/297564
78 p r a c t i c a l w i n e r y & v i n e ya r d M ay 2 0 1 4 M ount Eden Vineyards, a 40-acre e st at e i n t he S a nt a Cr u z Mountains above Saratoga, Calif., has a history shrouded in mys- tique nearly as thick as the fog that occa- sionally surrounds its vineyards. It is this mystique and— more important — the minimalistic, unwavering winemaking and viticultural practices of owner, wine- maker-grower Jeffrey Patterson that have given rise to what wine critics call some of the most elegant, balanced and sophisti- cated California wines. Located 2,000 feet above the Santa Clara Valley, Mount Eden has made three wines from the estate since 1972: Char- donnay, Pinot Noir and a Bordeaux-style Cabernet Sauvignon. Today the site con- sists of 20 acres of Chardonnay, 7 acres of Pinot Noir and 13 acres of Cabernet Sau- vignon, with small amounts of Merlot and Cabernet Franc. Going to the bank Mount Eden's history dates back to the late 1800s via a peripheral connection to vintner Paul Masson, and then later to wine pioneer Martin Ray, who established the original site in 1945 using cuttings from Paul Masson's nearby vineyard for Chardonnay and Pinot Noir. This iconic winery, however, is not just an enological success or historical fasci- nation — it is a profitable operation, thanks to Patterson and his wife Ellie Pat- terson who have managed Mount Eden since 1983. The couple arrived in 1981, when Jeffrey was hired as assistant wine- maker. At that time, the winery was pro- ducing 1,500 cases of estate wine and 1,000 cases of Central Coast Chardonnay. Jeffrey was quickly promoted to head winemaker, and he and Ellie became sig- nificant shareholders three years later. Over the years, the Pattersons have run an efficient operation — staying true to the winery's philosophy of making bal- a n c e d w i n e s — g e n e r a t i n g e n o u g h money to pay cash for essentials such as grapes and bottles. By 2007, they had built a solid financial portfolio that boasted $1.1 million in cash, 25% net profit margins and zero debt. All they needed was more cellar space because by then, total production had exceeded 13,000 cases. Impressed with the Patterson's man- agement, financial statement and credit- worthiness, Silicon Valley Bank (SVB) in December 2007 loaned the Pattersons $4 million to expand their operation. The Pattersons made an $800,000 down pay- ment to purchase the original Cinnabar Winery estate, one mile south of Mount Eden Vineyards and 1,650 feet above the town of Saratoga. Unlike the genesis of Mount Eden Vine- yards, the relationship between the Pat- tersons and SVB is based less on legend a n d m o r e o n p r a g m a t i s m . E l l i e approached SVB in September 2007 after hearing of its wine division, which com- prises nearly 10% of the bank's $9 billion loan portfolio. "Beyond being just a bank, Silicon Valley Bank has a comprehensive wine program and was very interested in our business," Jeffrey Patterson recalls. Given the winery's healthy financial footprint, SVB made the loan easy to obtain. Whereas most banks require quarterly inventory reports , SVB did not. "They are a well-run business," says Dan Aguilar, the bank's managing direc- w i n e B U S i n e S S Highest elevation of Mount Eden Vineyards overlooking Santa Clara Valley. Jeffrey and wife Ellie Patterson have managed Mount Eden Vineyards since 1983. Cynthia Bournellis BY expands with and Sılıcon Valley Bank financing