The Napa Register published two articles that 'rang the bell' this week:
Marketing reflects changing demand of Napa Valley wine
More Wine Stays Unsold During Economic Slump
“National distribution makes sense for some wineries, but direct is more critical to survival and growth,” Steinthal said.
This may mean a new approach to marketing, one that emphasizes personal relationships with consumers. “The folks that had good treasure chests before the economic climate phase hit have the advantage right now,” Steinthal agrees, “because if you’re strong and able to carefully spend your money in the right places in your business, you’ll come out stronger in the next 18 months.”
In the meantime, many wineries are just doing what they can to tread water. Wineries are consolidating their portfolios, producing less expensive second labels, selling excess grapes and laying off staff. “It’s the fundamentals,” Steinthal said, “getting back out there into the market, rationalizing your portfolio, scrutinizing the balance sheet on the income statement to see what you can turn into cash right now.”
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