Wines & Vines Home
   
SUBSCRIBER LOGIN ID:   Password:  
Where do I find this?
 
Latest news headlinesFeature articles from our editorial staffsThought-provoking commentaryNews this monthIndustry events and learning opportunitiesPrint Edition of Wines & VinesSubscribe to Vines & Vines magazine or order our productsDirectory and Buyers GuideAdvertise with Wines & Vines Online Marketing System (OMS)
EDITORIIAL COLUMNS - Editor's Letter
READER COMMENTS
 
Article: Napa Makes Moth Control Mandatory »
 
It appears your commissioner is being seen to be doing something about a situation that...
Reader: crash
 
Article: Washington Wineries Oppose Ballot Measure »
 
The WWI concerns are interesting. Here are a few reality checks. In-store tastings have been...
Reader: Don Julien
 
Article: Telemarketing Works for Wineries »
 
Scott, you nailed it - the key is integrity. If you're honest about who you...
Reader: Jim
 
Article: Wineries Rate Their Distributors »
 
About Time! To make this even better, have the retailers rate their distributors, and match...
Reader: Stan Rose
 
Article: Wine Tasting Room Success Strategies »
 
It sounds like the only thing Apha Omega needs now is a PR director with...
Reader: winetourist21
 
 
NEWSBRIEFS
  • Lake County is growing
    Robledo Family Winery opened a satellite tasting room in Lakeport, Lake County, where it farms 85 acres of vineyards. It’s the second site for 20,000-case Sonoma-based Robledo, and brings the Lake County Winery Association to a total of 27 winery members. Other new members are 1,000-case Hawk and Horse Vineyards, which farms 18 Biodynamic and organic-certified acres in Lower Lake, and Quattro Fratelli Cellars, Lakeport.
     
  • Goose Ridge opens second tasting room
    Goose Ridge Vineyard in April became the 12th Eastern Washington winery to open a satellite tasting room in the Western Washington town of Woodinville during the past year. The estate vineyard was established in Benton City in 1998; the 40,000-case winery also has a tasting room in nearby Richland.
     
  • Nicklaus takes a swing at wine
    Golf legend Jack Nicklaus and his family have partnered with Terlato Wines, Lake Bluff, Ill., to create Jack Nicklaus Wines, Bordeaux varietals and blends sourced from Napa Valley appellations. Retailing at $35 to $43 per bottle, they are available through uncorked.com and at golf clubs and resorts. The wines debuted in June.
     
  • New winemaker at Bedell
    Bedell Cellars, a 10,000-case producer in Cutchogue, on the North Fork of Long Island, N.Y., appointed Richard Olsen-Harbich winemaker. Previously, he was winemaker at 5,000-case Raphael in Peconic, N.Y.
     
  • Winemaker joins Vinicas
    Tartaric acid manufacturer/direct distributor, Vinicas Inc., Napa, Calif., appointed Krimo Souilah as winemaker and sales manager for North America. Owner of a Pinot Noir vineyard in British Columbia’s Okanagan Valley, he also has distributed barrels for Mercier USA Inc. For more information, visit vinicas.com.
     
  • MORE »
 

CALENDAR
  • July 1 - August 31
     
    Summer Passport
     
  • July 28-30
     
    Red, White & Bubbles
     
  • July 31
     
    Urban Wine Experience
     
  • August 1-8
     
    Key Largo Food and Wine Festival
     
  • MORE »
 
A compilation of wines reviewed each week by leading wire service and major daily newspaper wine columnists
 
READ »
 

 

Editor's Letter

 

Thriving in a Slowing Economy

November 2008
 
by Jim Gordon
 
 
In the past month, news about the American economy has sunk from bad to worse. At the same time, many wineries confirmed that their sales are softening, if not dropping. As experts in government, banking and the stock market talked about the worst financial crisis since the Great Depression, it seemed like a good time to look around for anti-depression measures for the wine industry.

I interviewed an assortment of growers, winemakers, marketers and financial types and asked them what grapegrowers and vintners can do, on the one hand, to maintain or increase sales, and on the other, to contain or reduce costs.

Take a deep breath

"Here's what I am telling my clients," said CPA Jeff Sully of Dillwood Burkey & Sully in Walla Walla, Wash. "Take a conservative stance on investments. Before you buy anything significant, ask yourself again, 'Do I really need to spend the money on this?' Take a deep breath and ride the storm out."

Don't lower your price

Elliott Stern, COO of The Sorting Table, a marketing and sales company in Napa, said an important thing not to do is to lower your price to try to move cases more quickly. During 35 years in the business, he has lived through multiple earlier recessions. "Wineries with luxury products can't lower their prices, because if they do, they totally reposition their products and they'll never recover." Instead, increase your marketing efforts in innovative ways. Connect with your local appellation group for collective marketing efforts. If you do lower your price, get something for it, Stern said. Offer enhanced margins to accounts that agree to publish an article about you in their catalogs, newsletters or e-mail newsletters.

Consider a second label

Ron Barrett of Kinkead Ridge Vineyard and Estate Winery in Ripley, Ohio, said he already watches his expenses closely. "Most small wineries, in one way or another, are pretty good at cost management. Nobody I know here has money to burn." One tactic he hasn't needed to use, but believes could help in a recession, is creating or extending a second label to move wine more quickly. "If a winery was really faced with a tough situation where inventory costs were getting out of control, a second label could be useful," Barret said. He and partner Nancy Bentley already bottle a second label, River Village Cellars, which is priced at two-thirds the retail value of their $18-$20 estate grown Kinkead Ridge line. The lower-priced label is easy to sell, he said, adding that if a winery uses a second label to soak up lesser quality lots of wine, the main brand wines will benefit.

Go out with a full load

Tom Shelton is vineyard owner and winemaker for Bordeleau Vineyards & Winery in Eden, Md., which opened its tasting room doors in June. Before becoming a grapegrower, he was in the poultry business at Perdue Farms and remains involved with the poultry firm Case Foods. "You really need to buy well and be very sensitive about costs," he said. "In poultry we think about payloads. If you send a truck out, make sure you've loaded as much on there as you legally can. The same thing applies to the wine business. Don't go out in your van or pickup with a short load. Try to schedule things better, or maybe say to the customer, 'Let me bring you 15 cases instead of 10, and I'll let you share in the savings.'"

Cooperate on purchases

Michael Mondavi is the "founder and coach" of Folio Fine Wine Partners in Napa, Calif., which imports and markets wine made by others, as well as producing California wine. He advocated a new practice of interdependence among smaller players to market their wines, but also to reduce their costs. "We as independent growers and wineries have to be focused on the supply chain as well. Why couldn't two-dozen wineries form an informal co-op, go to a supplier company and say they now represent 1 million cases and want to buy glass? Aren't they going to get a better price than any of the wineries would alone?"

No one I talked to, on or off the record, advised cutting corners on grape or wine quality. Fewer spray passes, less leaf pulling and cheaper barrels all seem to be off the table, at least for now. If you would like to share your own strategy for thriving during a recession, please e-mail me at jim@winesandvines.com.
 
Print this page  PRINTER-FRIENDLY VERSION »
E-mail this article  E-MAIL THIS ARTICLE »
Close
 
Currently no comments posted for this article.
 
 
SEE OTHER EDITIONS OF THIS COLUMN » CURRENT COLUMN ARTICLES »
 
 

 
Wines & Vines Home
 
866.453.9701 | 415.453.9700 | Fax: 415.453.2517
info@winesandvines.com
Directory/Buyer's Guide — Your Wine Industry Marketplace
 
 
WINERY SEARCH
 
 
Advanced Search »
SUPPLIER SEARCH
   by Product
 by Company Name or Brand
 
Browse by Category »
2010 Directory/Buyer's Guide
The Wines & Vines Directory and Buyer's Guide
 
 
EXPANDED ONLINE SEARCH INCLUDED WITH PURCHASE
 
ORDER NOW »
 
 
The Wines & Vines Online Marketing System
 
The Industry Standard winery marketing application
 
FREE LIVE DEMO »
 
VIEW VIDEO »
 
 
 
 
Latest Job Listings
 Seasonal Retail Associ...
 Yountville, CA
Hospitality and Retail
 Seasonal Chandon Host
 Yountville, CA
Hospitality and Retail
 Multiple Openings Avai...
 Clarksburg, CA
Winemaking and Production
 Boutique Wine Importer...
 Nyc, Ca, Nj, NA
Sales and Marketing
 Fine Wine Specialist
 All Major Cities In Florida, FL
Sales and Marketing
 Seasonal Harvest
 Napa, CA
Winemaking and Production
 District Manager, Nv
 Las Vegas, NV
Sales and Marketing
 Los Angeles Area Field...
 Los Angeles, CA
Sales and Marketing
 Harvest Enologist
 Napa, CA
Winemaking and Production
 Assistant Manager
 Oldwick, NJ
General Administration and
 
More Job Listings >>
Follow Us On:
 
 
 
 





Home  |  About Us  |  Editors  |  Subscribe  |  Print Edition  |  Industry Links

Advertise  |  Site Map  |  Contact Us  |  Privacy Policy
 
 
Copyright © 2001-2010 by Wine Communications Group, Inc. All Rights Reserved.
No material may be reproduced without written permission of the Publisher.
Wines&Vines does not assume any responsibility for any unsolicited manuscripts or materials.