Sunday, December 26, 2010

starting a vineyard outside of Mendoza

[from Yvonne & Tom Phelan in The Wall Street Journal, Dec. 20, 2010]

Moving to Argentina

We discovered Argentina three years ago, during what we assumed would be a brief visit to Buenos Aires. Today, we own a 108-acre vineyard outside Mendoza, a city and metropolitan area of about 800,000 people in western Argentina and our home for about 10 months out of each year.

How we came to live in Argentina is a story of good fortune, hard work—and considerable patience. Our adopted country, for all its charms, moves at its own, deliberate pace.

During our working years in the U.S. (primarily in real-estate investment), we lived in several places—California, Arizona, New York, Colorado—but never found our Shangri-La. Over time, the idea of living abroad became more appealing. We're restless and inquisitive by nature, and the chance to meet new people, be part of another culture and learn another language seemed to fit our needs.

In 2007, a three-day real-estate conference brought us to Buenos Aires. The atmosphere felt right from the start: a European-like mix of culture and numerous diversions, including, of course, the tango. We ended up renting an apartment for three months, which allowed us to explore Argentina's wine country and Mendoza.

Realizing a Dream

For decades, the two of us had shared a dream of owning a vineyard in California's Napa Valley. But by the time we reached our 60s and began investigating our dream in earnest, the five-acre property we envisioned owning and nurturing cost more than $1 million.

Mendoza, by contrast, was a revelation. Land outside the city, the unofficial capital of Argentina's growing wine industry, could be had for about $1,500 an acre (although prices have been climbing steadily since our arrival). At the same time, we found ourselves smitten with Mendoza itself: the many beautiful parks, the breathtaking views of the Andes Mountains, and the night life that spills out of restaurants and onto the sidewalks.

We decided to pursue our Napa Valley dream in Argentina.

Today, we divide our time between our vineyard, which is about a 2½-hour drive from Mendoza, and the city. As with any new business, the demands have been overwhelming at times. Between finding the right workers and staff (including a vineyard manager, an agronomist and an accountant) and the right supplies and equipment (including 40,000 grapevines, 6,000 fence posts, miles of trellis wire and a tractor), we have asked ourselves more than once: "Are we out of our minds?" Still, progress is evident: This year, we will have planted 43 acres of Malbec, Cabernet Sauvignon, Syrah and Chardonnay grapes.

Eventually, when the grapevines are more mature, we plan to build a home at the vineyard. For now, we live on the 10th floor of a high-rise condominium building in Mendoza within easy walking distance of all our needs. We have panoramic views of the city and the Andes, as well as all of the amenities of a luxury residence in the U.S.—at about one-fifth the cost. Our monthly outlay for rent, utilities, cable-TV, telephone and Internet services is less than $1,000.

Quick Adjustment

We were fortunate in that we found our "sea legs" relatively quickly. Within a month or so of our arrival, we had a good feel for the center of the city. (Outlying areas are rarely more than a $5 cab ride away.) For the most part, Mendoza has proved to be more than hospitable. We frequently attend local functions—art exhibitions, wine tastings, jazz or tango music, cooking classes, poetry readings—where we mingle with Argentines and other expats.

(Yvonne was fluent in Spanish before we arrived in Argentina, although she has had to adjust to some pronunciations and vocabulary. Tom knows little Spanish and tends to rely on Yvonne.)

Weekends often find us choosing between a "city day" or a "country day." If it's the former, we might go the Central Market, built in 1883, where specialty vendors educate you about their offerings. If it's the latter, we might drive to a winery for lunch, with snow-capped mountains as a backdrop.

Cultural Differences

Of course, some culture shock was inevitable. Among the surprises:

• Foods that you crave but can't find. In particular, Chinese, Thai and Mexican dishes are tough to prepare because few places carry the ingredients.

• Appliances. They can be as much as 25% to 50% more expensive in Argentina than in the U.S.

• A lack of orderly and predictable business functions. You might be totally ignored at a restaurant during a shift change because all of the employees are busy listening to their shift supervisor. Or you might arrive at a retail store you have patronized many times only to find it closed during normal business hours for no apparent reason.

• The movies. You show up at the scheduled show time—but the movie hasn't arrived or the projectionist hasn't come to work. Or a movie is listed as playing in English when in fact it's playing in Spanish.

Nudge, Nudge

Much of this is simply a reflection of the "Argentine way." In the U.S., we're accustomed to initiating an action and getting a response. Many Argentines, to put it gently, don't adhere to that approach. You have to continually pursue them for a response or answer. They say, "Yes, yes, yes," but nothing will happen until, by sheer persistence, you finally get the answer or the problem is resolved.

Our style is to continually call, push to completion and be gracious when something actually gets done. Threats or loss of patience won't move Argentines. They move at their own pace, and nothing is so important to them that it speeds up that pace.

In many ways, we feel as if we have arrived in Argentina and Mendoza at the best of moments. The wine industry has pumped $15 billion into the city alone in recent years, which has helped build a formidable infrastructure—including excellent and affordable health care.

With services for doctors and dentists about 20% of the cost in the U.S., many expats self-insure. (Tom recently had an old crown removed, the tooth pulled, and a bone graft and implant done—all for $600.)

Each year, tens of thousands of foreigners flock to Mendoza to visit the region's 1,200 wineries. The biggest annual event in the city is the Fiesta Nacional de la Vendimia (the National Wine Harvest Festival) in early March. A week of concerts and parades culminate in the festival queen's coronation in the San Martin Park Amphitheater.

In all, we are very thankful that we found Mendoza, and that this lovely Argentine city has graciously embraced us. We envision a future where we will sit on the veranda of our "estancia" (farm or ranch house), sipping one of our Malbec wines, looking out at our vineyard and saying: "This is la vida buena."