Crushpad: Shoot The Messenger And Maybe Nobody’ll Notice Us.

Crushpad seems to spend an awful lot of time trying to blame all their problems on others, especially Wine Industry Insight. Their communications continue the handy fiction that if only we didn’t report anything — and their clients remained in the dark — they’d be all fine and dandy.

Never mind that all our articles have been prompted by emails, phone calls, faxes and other communications from investors and clients who are confused and/or outraged at mysterious and unexplained problems with their money and their wine.

The fact is that Crushpad had been melting down for months before WII reported on it. And we will continue to report on it. To lay that at the feet of the messenger is a dishonest and lame attempt at distracting investors and clients away from where the problem started and where it lies.

Crushpad should also recognize that misleading customers and investors with false or deliberately concealed information has serious legal consequences. Crushpad took a very visible position on crowdsourcing investments, (Crushpad Syndicate Brings Crowdfunding to Wine). This is a new investment scheme that regulators are taking a much closer look at — especially with regard to transparency and disclosure issues. It is also significant that Crushpad was promoting its crowdsourcing syndicate at a time that it was already aware of its looming financial issues.

Crushpad should have been forthcoming with disclosures and reports. Wine Industry Insight should not have had to make the disclosures for them. But they didn’t. And we did. And will continue to do so.

Because of all this, it was not a giant surprise to get a copy of the latest “blame anyone but us” email from Crushpad. The email was sent to us by a number of Wine Industry Insight’s Crushpad sources. The email is reproduced below. (Aspect is a Crushpad service that sells client wines.)

One of the sources of this email sent the following comment: “It is disturbing that they do not seem to take any accountability for the situation they are in and are playing the victim, while holding clients wine captive and not responding to inquiries.”

> From: Crushpad <info@crushpadwine.com>
> To: info <info@crushpadwine.com>
> Subject: Crushpad Update
>
Dear Aspect Member,

As you know, Aspect Wines, LLC is sourcing wine making services from Crushpad including grape purchasing,  winemakers, barrel storage, bottling, IT and administrative services etc. Crushpad is a small organization focused entirely on providing these services however, since the unfortunate article four weeks ago, Crushpad has focused a large amount of its scarce resources dealing with the aftermath of that article.

The Directors are working on a solution for Crushpad. While the final solution is still to be determined and communicated, the current situation for the Aspect Members can be described as follows:

A Bay Area investment firm has been working with both the Company’s lenders and the Board to develop a comprehensive go-forward strategic plan. Our understanding is that their intention is to resume normal operations as quickly as possible.

Your 2010-2011 wine in barrel: Your wine is still located at the same place at Sebastiani and is under the supervision of Patrick Saboe, Crushpad & Aspect Winemaker.

Patrick Saboe is conducting blending sessions with both Crushpad clients and Aspect Members as scheduled.

Crushpad is negotiating with Groskopf to release already bottled Aspect Wine LLC Member wines under a COD agreement. We will let you know how this progresses. Until resolved, you may want to hold accepting orders, especially given the heat wave.

Bottling is temporarily on hold. Bottling should resume shortly as to retain the highest quality wine possible. Details to follow.

Aspect Member fee payments from May & June are on hold. Details will follow on this topic as well.

While Crushpad is sorting out its situation, Steve Ryan is still available with updates when they are available. He’s working extremely hard on the solution for Crushpad as well and is doing his best to return your calls and emails in the order they are received.

We are truly sorry for this situation. We understand this is making all of you uneasy, however, we believe this is temporary.

We expect positive developments in the very near future and will keep you informed when we have relevant info to share.

Regards,

BACKGROUND

• Crushpad Update: Clients Concerned But Company Sees Hope For Funding
• Cazes Family Takes Over Crushpad Bordeaux, Updates Clients
• Crushpad’s Dire Email To Investors Sheds More Light On Difficulties
• Crushpad: Speak The Truth Or Shut Up!
• Crushpad California Closing?
• 04/26/12- -Crushpad Bordeaux to open at Lynch Bages
• 01/25/12 – Win Your Own Wine Brand in the Crushpad Club Challenge
• 08/02/11 – Crushpad Names Peter Ekman CEO
• Crushpad Syndicate Brings Crowdfunding to Wine
• 06/21/11 – Crushpad Hires Architects to Design New Visitor Center
• 04/11/2011 – Crushpad moves to Sebastiani Winery In Sonoma, receives “major” funding from Bill Foley
• 09/14/10 – Crushpad Bordeaux bottles first