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San Francisco's Ferry Plaza Wine Merchant enjoys a privileged location in the city's magnificent new Ferry Building Marketplace, a grand 19^th-century passenger terminal recently transformed into a lively venue for restaurants, gourmet shops and other food-related enterprises. According to general manager Bo Thompson, the wine shop and attached wine bar emphasize new and unusual wines, many from smaller producers that bring fresh perspectives to the winemaker's art. Here are some of Thompson's top picks among the hundreds of labels from around the world that are currently available at the shop:

Under $20

• 2001 Cave Dog Merlot, Napa Valley, California, $19
  In the movie Sideways, obsessive oenophile Miles Raymond, played by actor Paul Giamatti, vehemently refuses to drink Merlot, dismissing outright what can be a truly marvelous grape. Thompson says this fine example from Northern California, a second label produced by the well-regarded Havens Wine Cellars, is as complex and graceful as Merlots that cost twice the price.

• 2002 Domaine Laurens "Demoiselles" Crémant de Limoux, France, $18
  This crisp, refined bubbly comes from one of Thompson's favorite producers in the Limoux region of southern France, where delicious effervescent wines are made from a blend of Chardonnay, Chenin Blanc and Mauzac. The sparkling wine tradition here dates back at least as long as in the Champagne region farther north, but the appellation remains relatively undiscovered across the Atlantic, and an excellent value for U.S. consumers.

• 2003 Devon Hill Sauvignon Blanc, Stellenbosch, South Africa, $16
  The Sauvignon Blanc grape has long been featured in high-profile wines from Bordeaux and the Loire Valley, but Thompson says other nations (most notably New Zealand) have lately been giving the French a run for their money. In recent years, some South African producers have achieved noteworthy results with the grape as well, including this zippy white from an ultra-modern winery in the beautiful Devon Valley.

• 2003 Donabaum Spitzer Weingarten Gruner Veltliner, Federspiel, Wachau, Austria, $13
  No need to be intimidated by the dauntingly long name of this dry and zesty white wine from Austria. Donabaum is the name of the producer. Gruner Veltliner is the name of a wine grape widely grown in Austria. And Spitzer Weingarten refers to the area around the town of Spitz on the river Danube where the grapes for this particular wine are harvested. Thompson adds that under Austrian law, wines labeled "Federspiel" must be made with no added sugar and an alcohol content not exceeding 12.5 percent.

• 2003 Ñandú, Malbec, San Rafael, Argentina, $12
  Originally one of several grapes blended with Cabernet and Merlot to make classic Bordeaux reds, Malbec has more recently earned top billing in an exciting new generation of varietal wines from Argentina. Thompson describes the 2003 Ñandú, named for a flightless bird native to the wine region of San Rafael, as dry and medium-bodied with a slight influence of oak. Only 1,000 cases were produced, but if you can't find this particular label, there are many other good South American Malbecs to try.

• 2004 Txomin Etxaniz Txakolina, Getaria, Spain, $19
  Thompson jokingly calls this racy white wine with an unpronounceable name "the Tina Turner of wine," a reference to the Acid Queen character Turner played in the 1975 film version of Tommy. Txakolina is produced along the Basque seacoast of northwestern Spain using an obscure local grape, Hondarrabi Zuri. Its crisp, light-bodied character is a perfect complement for shellfish.

• 2004 Hugo Estate Unwooded Chardonnay, McLaren Vale, Australia, $15.50
  While American winemakers almost invariably use oak barrels or chips to flavor their Chardonnay wines, there is a move afoot in Australia to make Chardonnay without any oak whatsoever. Thompson says this style allows more of the grape's natural tropical fruit and crisp acidity to come through. Hugo Estate is a small producer in the hills above McLaren Vale in southern Australia, where the cool conditions are ideal for this unwooded style.

Under $40

• 2001 Châteauneuf-du-Pape, Domaine La Millière, France, $31
  Thompson calls Châteauneuf-du-Pape "one of the most passionate and interesting blends in all of the wine world." The region's vibrant reds with Grenache as the dominant grape have been gaining popularity in recent years, but while prices for some labels have skyrocketed, the cost of this organically farmed wine from Domaine La Millière has remained fairly constant. With only 421 cases produced from the 2001 harvest, you're not likely to find this gem at your local supermarket, but a good wine shop can steer you to other great buys from the region.

• 2002 Kathryn Kennedy Lateral Red, California, $30
  This tiny boutique winery has cultivated a solid reputation for making big, flavorful Cabernet Sauvignon wines from grapes grown on sustainably farmed vineyards in the Santa Cruz Mountains south of San Francisco. Lateral Red, an elegant Bordeaux-style blend of Merlot, Petit Verdot, Cabernet Franc and Cabernet Sauvignon, offers an affordable alternative to the winery's pricey Estate Cabernets. Thompson says this popular wine sells out quickly, so buy soon or you'll have to wait for the 2003 release.

• 2003 Orin Swift, The Prisoner, Napa Valley, California, $26
  Thompson describes young winemaker Dave Phinney as a "rising star" of the California wine industry, and his 2002 Orin Swift The Prisoner as a "a great value for a Napa Valley original." This unusual blend of Zinfandel, Syrah, Cabernet Sauvignon, Petite Syrah and Charbono combines big, rich flavors with enough bright acidity to keep the wine balanced and juicy.

• 2003 Rivetti "Bricco Quaglia" Moscato d'Asti, Piemonte, Italy, $21
  Moscato d'Asti is a fruity, lightly sparkling Italian white wine with low alcohol content that is typically served as an aperitif or with dessert. Thompson says this fresh and lively bottling from winemaker Giorgio Rivetti smells like a field of spring wildflowers.

• 2003 Boekenhoutskloof, The Chocolate Block, Western Cape, South Africa, $32
  This unlikely combination of Syrah, Cabernet Sauvignon, Grenache, Cinsault, and Viognier is part of a growing number of remarkable vintages arriving from South Africa, a nation that is rapidly gaining ground as an exporter of premium wines. Thompson says this "spectacularly well-made" wine is named not only for the chocolate nuances that punctuate it, but also for a block in the vineyard where the grapes are grown.