It’s the perfect segue for today’s post because….

I am drowning.  When I say drowning I mean swamped, swimming, sinking. And, no amount of coffee can give me enough hours in a day to get it all done.  I’m like a duck…above water, I look cool and composed but down below I’m paddling like hell just to keep my head above the surface.  

I’m not talking about wine sales.  Or, even profits--although improvements could be made in both areas.  I’m talking about trying to keep up with the way business is conducted today.  Our round the clock, 24/7, electronically connected world has made it impossible for people to catch up, no matter how many hours you throw into the work week. Frankly, it’s not the actual work during the “work week” that is the problem.  It’s the sheer VOLUME of correspondence that accumulates from emails, phone tag, meetings, and follow up meeting to those original meetings--in both work AND personal life-- that creates all the havoc.  (Heck, even my mother emails me now.)  To top it off, everywhere I look and everything I read indicates that “today’s savvy business leaders need to fully embrace all forms of social media, especially Facebook and Twitter as these are vital to connecting with future customers.”  

You have got to be kidding.  Does anyone else out there besides me wonder how this is humanly possible?  Clearly, I’m a twirp (an old fashioned term that seems fitting for us twitter resisters!) and if I hear it one more time, I think I’ll scream.  Or discombobulate, which I’ve been accused of doing a lot lately, if you ask my kids.  Don’t get me wrong. I completely agree with the idea of connecting with customers through the use of the internet.  It’s fast, it’s cheap, and for small family companies like ours, it’s a great way to communicate with a wide group of people.  That is why I started this blog.    But I’m not sure it’s possible to add Facebook, Twitter, and Lord knows what next to an already full in-box when one wears a hundred different hats—and who doesn’t these days?!

And, apparently to do it right it needs to be personal and authentic.

At least that’s the message I got from a seminar I attended last week.  Put on by the Luxury Marketing Council (yes, I too, saw the irony in their name which is probably why for $50 bucks I decided to make the trek to Napa to pick up some pointers!), this gathering focused on how to grow our tasting room business and attract more visitors to the winery.  Or, as one panelist stated: “how to separate the wealthy from their wealth.”  The panel was impressive.  And, on most of their recommendations, I’d give us high marks.

Authentic?  Check.

Personalized? Check.

Service oriented? Check.

But, is the owner on Facebook?  No and that’s where I’m clearly falling short.  Luckily, I can delegate this function, which is exactly what I’ve done to my 30 something marketing assistant.  But the pressure is all around me, as is the feeling that I’m NOT KEEPING UP.

While I picked up some good tips, I left the seminar still not sure I want to add Facebook Diva or Twitter Tramp to my list of winery titles.  Sure it can help spread “the word” to a new audience.  And, it seems to be growing like wild fire.  But isn’t there a bit of irony to the whole Facebook thing?  While everyone agrees that being authentic is important, wineries using Facebook in their marketing are working awfully hard to make sure it doesn’t actually LOOK like marketing.

And to me, that’s not being very authentic.

Imagine you’re in a conference room with 40 pairs of eyes looking at you. Every one is politely waiting for you to say something fascinating that will motivate them to go out and sell your wines. You have been hyped up as if you are some kind of a bigwig when in fact you are merely a weary businessperson with bills to pay, mouths to feed, and chores awaiting your return home. Welcome to the distributor kick-off meeting, a gathering of salespeople who will soon be selling your wines in a particular region.  I’ve done hundreds of these presentations before. Yet I still find them a challenge no matter how well I know my stuff. (There’s something unsettling knowing that the future of our brand rests in part, on how inspiring I am…)

My secret? Coffee. It’s a dirty little secret, and not one I readily admit to my physician, but staying enthusiastic, energetic, and upbeat can be difficult.

There used to be a saying: “It takes a lot of good beer to make great wine.” While this may be true for winemakers, those of us in sales and marketing would probably agree: "It takes a lot of good coffee to sell great wine!"

Coffee really does come into play as I bounce between business trips, trade shows, account calls, wine dinners, distributor sales meetings, and day to day correspondence/communications/management here at the winery. My winery friends all agree and from the look of things, it won't be changing anytime soon.

While there are signs the economy is improving, fine wine sales continue to be sluggish. Even when you’re picked as the poster child of a winery making a good cross section of reasonably priced wines (see page 48 of the January 31 issue of Wine Spectator) you still have to hustle and bustle to get the product sold. Gone are the days of wines selling on point scores or reputation. Gone are the days when wine buyers have to have your wines to make their selection compete.  Gone are the days when customer loyalty is cultivated through quality, reliability, and reputation. Wine sales in 2010 have come down to three things: who is working the hardest, how loud they can shout, and how enthusiastically (i.e. aggressively) they can carry their message to market.

That’s where coffee plays a role. Unfortunately, it’s a necessary evil that seems to be vital to our efforts.

That is why I’ve modified the 2010 Budget…

It might not be as meaningful as relief work in Haiti or finding a cure for a deadly disease, but it’s my life’s work and the passionate pursuit of a whole bunch of dedicated people around here.

 
But mostly Santa, I want peace, happiness, health, and prosperity for all. I want all my blog readers to know how much I cherish their feedback and support—it is what keeps me going in the wee hours of the night.  I especially hope our employees have a joyous and restful time with their families. They deserve it.

Thanks Santa,

Love,
Kim (aka Wilma)
 

Then, raise a glass to them, cause let me tell you, it ain’t easy!

It takes a village. This is true in nearly all things in life whether it’s parenting, selling wine or building a business. This notion really struck home for me after last week’s national sales meetings.

Every year, usually twice, we have national sales meetings. The name sounds rather ominous and important for a fairly small group who gather to strategize, review, and brainstorm our upcoming year’s sales plans and goals. I figure I’ve sat through at least 46 of these things. (That’s 2X per year for 23 years). And to some degree I always feel a sense of déjà vu. I mean, there are only so many ways we can skin the cat, you know? But this was the year when the rules changed. When we had to throw out conventional thinking and look at our business in a new light. Like so many in this country, we got back to the basics and applied ingenuity and entrepreneurship that is part of our country’s heritage.

But, trying to forecast sales with an economy so unpredictable is like predicting the weather in Hawaii. (It can change several times a day.) Sure we’ve got years of historical data along with this year’s numbers, which by all measures have been pretty darn good. And, we have numerous promotions lined up for 2010 that will make an impact.  But if you asked me if I know FOR SURE whether we’ll hit our 5 year plan or even a 3 year plan, I’d have to say I think so. And with this admission, comes a small degree of unease. A lot of my vintner friends are in the same boat. Ask anyone in real estate, building, banking or manufacturing—and I’d hazard to guess they’d say the same thing too. Of course some industries are booming. Take tortillas. Sales are sky rocketing. So are nursing homes and elder care. But wine, well it’s as variable as there are wineries today.

At Dry Creek Vineyard, we are very happy to be finishing the year with sales flat to last year. (You know what they say, “flat is the new up!”)  Interestingly, national sales are off modestly, while California sales are up quite dramatically. Tasting room sales are also down a bit but then again, we’ve had 3800 fewer visitors this year over last. Happily, the wine club and online sales are booming.

As I sat through these sales meetings, the thing that kept coming back time and time again is the importance of relationships. In other words, if you strip away the complicated process of how we get our wines to market, it all boils down to one thing: Relationships. Relationships with distributors. Relationships with restaurants. Relationships with retailers. Relationships with wine lovers. Relationships with wine writers. Relationships with growers. Relationships with vendors, with lenders, you name it. It’s all based on relationships. And no amount of planning, strategizing, brainstorming or forecasting can take the place of this old fashioned way of selling. It’s how my father did it and it’s how we do it.

Now back to my village analogy. Our sales team is our little village. They are our “relationship experts”. They are the wheels that drive the engine that brings the enjoyment of our wines to so many people. And, they are some of the nicest, hardest working, most ethical and caring folks I know. Thanks guys for all that you do!  

(And thank goodness we don’t have to meet again until next year.)

After our meetings, we broke into teams at Relish Cooking School for a culinary cook-off—a highly recommended adventure!

For many people, the day after Thanksgiving is a painful reminder of how little time is left before Christmas. Or, it’s a day dedicated to frenetic shopping in order to save a few bucks and get a head start on Santa.  

Not for our CFO, Dru. Today, he’s putting the final touches on the draft of our 2010 budget. To some degree, it’s a wish list of things we’d like to do along with the basic costs of running the business. For example, shipping and freight expenses are a necessary evil. New barrels and a brochure are more discretionary, although in the case of the barrels, they’re absolutely paramount to producing high quality wines whereas a brochure we can live without.  

In the past, the budget was built on projected revenues, which means projected sales. It was always pretty easy predicting next year’s sales as they were based on the prior year’s sales and available inventory. But this is a new era. The rules have changed. Logic and historical data are important but not entirely reliable. So we’re employing the “Plan for the worst and hope for the best” approach.  Plan A is our perfect scenario. Plan B is like an audible in a football play adjustment. And Plan C…well I don’t want to go there.

Next week we’ll have the benefit of our sales team who will be out here for our national sales meetings. We’ve encouraged them to be brutally honest. Please don’t tell us what you think we want to hear, tell us the truth. (Unless you don’t like the sailboats on the labels in which case, I’d recommend an outright lie!)

Three days of meetings will be peppered with laughs, pats on the back and of course plenty of time for eating and drinking. Hopefully a few “lightbulbs” will go off that will inspire and motivate everyone for the coming year. But mostly, we’ll be grateful for getting through one of the most challenging business climates in U.S. history. We’ll thank our lucky stars that we’re alive and kicking, with a full team of employees, planning for better times ahead.

Back to those post Thanksgiving reflections. It’s not about how many days are left until Xmas. Or, how many helpings I should NOT have had yesterday. It’s a time for showing gratitude and appreciation for the hardships our ancestors faced. For saying thanks to everyone who made a difference this past year at Dry Creek. And for thinking about our CFO, who’s hard at work crunching the numbers.

In a word, thanks.

Ahh, retail therapy.........................

Wine Widow. I had never heard the term until yesterday when a friend stopped me in the grocery store and asked if I was a “wine widow” these days. I abruptly asked, “huh?”

It’s a fitting term and one that applies to hordes of winery personnel who are involved in the national sales and marketing of their products. Ever since the Great R (read: RECESSION) began, we’ve had to step up our presence in the marketplace. That’s marketing speak for getting out there and working in a region to help physically sell the product. Distributors used to love this. Who wouldn’t want the owner of Chateau Such and Such actually making sales calls, popping corks, and telling the romantic stories and features and benefits of their particular wine? And, as a general rule, market visits were viewed as a gracious and supportive gesture from the winery that distributors anxiously awaited.  (At DCV, we’ve spent decades doing this.)  

But it’s different nowadays. Times are tough. And being a winery owner is not all that unusual anymore. What’s different is the sheer volume of wine available and the reduced capacity of many accounts to increase wine sales with consumers spending less on dining out, etc. So, what’s a struggling winery owner to do?

Buck up. Hit the highways and byways. Live out of a suitcase. Get aggressive. Devise special programs that mimic other industries. I’m still trying to figure out how we can offer a 60 day money back guarantee like GM’s new campaign to spur auto sales.  (Somehow I don’t think the ABC would like this.) We’ve had to employ some pretty bold tactics lately without jeopardizing our price/positioning. It has definitely been trying.

Which is why my friend asked if I was a “wine widow.” The Husband has been traveling nonstop with only a couple of days between trips. Usually we try to share this duty but because of the kids, he’s been shouldering the brunt of it.

In between dragging a sample bag around and pitching the persnickety buyer, we did get to meet up for a business dinner at the home of one of our biggest customers. Sure it had a business purpose. But it also served as a brief re-connection during a very hectic time for us.

Thankfully it seems to be paying off. Sales through November have already surpassed last year. We had our biggest day of the year last Friday. And, the holidays are just around the corner. AND, EVERYONE KNOWS THAT’S A GREAT TIME TO DRINK DRY CREEK VINEYARD WINES, THE REGION’S PREMIER FAMILY OWNED WINERY.  

I told you I was getting aggressive!

It’s been a whirlwind. As if business isn’t stressful enough, the schizophrenic weather conditions have added a new dimension. It’s hard to know what to expect when one day it’s 80 degrees and the next day it’s raining cats and dogs. Thankfully, we had nearly all our vineyards, save a bit of Cabernet Franc and a few tons of Cabernet Sauvignon picked before the pounding rains hit. Frankly it’s a vintage that makes me grateful for the diversity in our wine program.  For example, thinner skinned varieties like Zinfandel, Sauvignon Blanc and Chardonnay are more susceptible to mold and mildew. But they are also harvested earlier in the season so we didn’t have to worry about them. And, with varieties like Petite Sirah, Petit Verdot and Malbec to fill in the blends, we’re optimistic about the vintage as long as the winemaker doesn’t go crazy! But, like everything else about 2009, nothing has been normal.

That goes for our tomato crop too. This year, it wasn’t until early August that we really had a crop. Things really picked up in September, and now I don’t know what to do with the bloody things. I don’t want to say I’m sick of them as I know it won’t be long before I’m stuck with the dreadful mealy supermarket variety. But I must admit I’m getting pretty sick of Caprese salad (sliced tomatoes, fresh mozzarella and basil). In talking to a couple of the cellar guys, it appears they are too. We had a killer employee garden this year, and everyone is trying to figure out what to do with the last veggies of the season. So last night I pulled out a favorite old recipe. It’s called Tomato Pudding. Lou and Susan Preston from Preston Vineyards gave it to me years ago. It’s a foolproof assemblage of a few ingredients that I almost always have hanging around. And, it makes a hearty side dish for a nice roast, grilled meats or other main dishes. Don’t get too anal about putting it all together, you can’t mess it up!

Tomato Pudding
8-10 fresh tomatoes, coarsely chopped (if you have the time, you can skin the tomatoes first by dunking them in boiling water and waiting until the skin cracks)
1 large chopped onion
Butter
Sugar
French Bread, sliced & buttered

In a large saucepan or pot, melt ¼ cup butter. Add chopped onions and sauté until translucent. Add tomatoes, cooking down for 30-45 minutes. Add a few teaspoons of sugar rather sparingly. Add slices of buttered French bread (stale is better), pushing them down so they are covered by the tomato mixture. Reduce heat, cover and cook by steaming until light and puffy, approx. 30 minutes. Salt and pepper to taste.  (Note: this dish is always better the second day.)

Growing up in San Francisco, I remember going to The Stick as a kid with my dad and watching Willie Mays round the bases and make the impossible look routine in centerfield. It was really a time of bonding with my old man. My brother and I would have a soda while my dad opted for the Cribari Red...I believe it was the "house wine" at Candlestick Park. For my dad, I'm sure it was to help ward off the freezing cold of a summer's evening at The Stick. Fast forward 30 odd years and I am watching Barry hitting his 660th home run at AT&T Park with my daughters, (they had the soda, I alas had opted for the Anchor Steam....it's a little warmer at AT&T) and I know they'll be visiting the park one day with their kids in tow. It would be safe to say we had a baseball culture, make that a Giants baseball culture around our house.

As Director of Retail Sales & Hospitality here at DCV, on occasion I get the opportunity to pour wine at events outside the winery. A couple of weeks back we were invited to pour at a Wine 2.0 event at Google. While pouring wine I had 3 or 4 conversations with people who told me that their parents were Dry Creek Vineyard fans. Since DCV was founded in 1972 this should not be too shocking. These were 20-somethings, I suppose the correct term would be Millennials, (that ever elusive group that everyone wants to market to) and they were talking about the wine culture they grew up in and how their parents influenced their appreciation of wine. This is a dramatic shift from when I grew up in the 70s when Mateus and Blue Nun were considered to be au currant, and for special occasions there was this French stuff called Pouilly-Fuisse.