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DE CEMBER NEWS Fund Ditches Vineyard Managers P Retirement system's ambitious Northwest plans outstripped economic reality aterson, Wash.—The California Public Employees' Retirement System's slice of Northwest wine country hangs in the balance, with the dismissal of Premier Pacific Vineyards Inc. as the system's partner in manage- ment and development of thousands of prime vineyard acres in Washington state and Oregon. Premier Pacific, partner with CalPERS in Pacific Vineyard Partners LLC, ambi- tiously purchased a 3,500-acre ranch in 2007 in Washington's Horse Heaven Hills AVA for a price rumored to be in the range of $5,000 per acre. Plans for the acreage operated as River Ridge called for high- density plantings of up to 3,000 vines per acre. Washington state vineyards typically average 600 vines per acre. Development would have been expensive, but the part- ners expected the resulting wines to com- mand premium prices. Pacific Vineyard Partners LLC $120 $100 $80 $60 $40 $20 $0 2003 2004 2005 2006 2007 2008 2009 2010 planted in Napa and Bordeaux and Bur- gundy," Bill Hill, co-founder of Premier Pacific and now former CEO, told Wines & Vines in 2008. "Our development costs alone are going to exceed $40,000 an acre. So if we buy ground for $5,000 or $10,000 an acre, and we put $45,000 per acre in it, we certainly aren't going to sell for $30 a bottle." Unfortunately, that's where consumer Net assets at cost Market value budgets went as the Great Recession took hold and buyers began seeking cheaper wines and better value. CalPERS was forced winesandvines.com Learn more: Search keyword "CalPERS." The value of the fund shown for fiscal years ended June 30. "It means more stakes, more hose, more emitters as well as more vines, and so on, and that's the way the great vineyards are to take a hard look at its plans. To date, just short of 140 acres have been planted at River Ridge. CalPERS spokesperson Brad Pacheco has been quoted in other media saying that CalPERS hopes to have a new partner on board by the end of the year. —Peter Mitham The original, BOTTLE-MATIC-II 3 YEAR WARRANTY INCLUDED Front and Back! $1800 for Wines & Vines Readers! Front & Back! Label any cylindrical container fast and accurately from ½" to 21 day trial MADE IN USA! DISPENSA-MATIC Label Dispensers 8" diameter, @ Speeds of 1200 Pcs. per hour. NOT A CHEAP, IMPORTED KNOCK-OFF! Wasting Time Labeling by Hand! STOP FAX:(573) 392-1757; E-mail: info@dispensamatic.com Web: http://www.bottle-labeler.com 28220 Playmor Beach Rd, Rocky Mount, MO 65072 Call Toll Free: 1 (800) 325-7303 or (573) 392-7684 Wines & Vines DeCeMBeR 2011 17 Price subject to change without notice. 2/01/10 CALPERS ANNUAL INVESTMENT REPORT, 2003-10 In Millions