
WEBSITE LAUNCHES NEXT WEEK
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WEBSITE LAUNCHES NEXT WEEK
MORE INFO COMING SOON
More than a year into the economic downturn, Napa Valley vintners are looking toward the future. “I think that we’re already starting to see a little bit of a turnaround as far as wine sales go,” St. Helena winery owner Kent Rasmussen said. Wine drinkers are buying more readily than they did a few months ago, he said, and retailers and restaurateurs are finally stocking up again. During the second quarter of 2009 — the last quarter for which information on sales tax revenue is available — winery sales in Napa County actually rose 3.9 percent over the second quarter of 2008. Spring 2008 was about the time that wine sales in Napa County first started to slip. Now, vintners are waiting on the holidays, when the bulk of their wine is sold, to see if there’s reason to be optimistic. “The fourth quarter is when the thing really crashed last year, so you better see a darn good increase this year, because a good portion of our production is sold during the holidays,” said Jack Cakebread, owner of Cakebread Cellars in Rutherford. “This is sort of the crunch time,” Napa Valley Vintners spokesman Terry Hall said, “because the fourth quarter really is the most active sales period for wine.”
The new ‘normal’
Regardless of how things go this winter, some say the Napa Valley wine industry may have changed forever. “I don’t think it can go back to normal,” Calistoga winery owner Laura Zahtila said. “I think we’ll have a new normal.” New Jersey wine merchant Gary Fisch agrees. “It will never be like it was,” he said, “and boy, did I like what it was.” Deborah Steinthal, founder of Napa-based Scion Advisors, predicts that $75 wines will move down permanently to $50, and Napa Valley wineries will be forced to reconsider their luxury-only portfolios. “I think we’ve got about three to five years to redefine our position in the world of wine,” she said, “and that means not just in terms of proving we can sell as much wine in the categories we’ve been selling in the past.” Ultra-premium wine producers could have an especially hard time if wine buyers permanently tighten their belts. “I think there’s going to be a lot less cult cab out there,” Zahtila said. “I think that wineries need to get realistic about what people should be and are willing to pay for their wine.” Bill Harlan, whose Harlan Estates wines go for up to $500 a bottle online, said he expects a shakeout in the next three to five years among cult wine producers, but he adds that those who survive will come out even stronger.
“I feel that if we stay the course and continue to work on producing better and better wines and build relationships one-by-one, then things will come back,” he said. Relationships may be the key to success, according to industry officials. As people change the way they buy wine, and as distributors change the way they sell it, wineries are beginning to focus more on selling directly to consumers than relying on other retail channels. “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. “If we just keep doing things as we have done in the past and hope things will eventually come around to the way they were 10 or 20 years ago, I think many businesses will be sadly surprised at the outcome,” said Ed Matovcik, vice president of Foster’s Wine Estates, and one of a group of wine industry representatives lobbying for fewer restrictions on local winery marketing events. Winemaker Mike Grgich said he believes that Napa Valley is entering “a new chapter of the wine industry.” “We can learn from this,” he said, “(but) we have to work hard and smart and learn new ways of marketing.” Some vintners say this means more than just changing their marketing techniques, it means changing to whom they market.
The younger generation.
Especially as Baby Boomers retire and cut back on their wine purchases, some wineries are starting to focus marketing efforts on the younger generation of wine buyers, including those born approximately from 1980 to 2000, known as the “millennials.” “The millennial category is really stepping up,” Steinthal said, “and wineries are learning how to market to millennials. Folks are really thinking through how to leverage the next generation of their family with a new category of customers, a new generation of customers.” Ceja Vineyards, for example, is one of the few wineries in Napa County that is actually expanding right now, and winery president Amelia Ceja attributes its success in large part to her children. “I have three children in their early 20s and they’re big on all the new technology and on the Internet,” Ceja said, “so that has been extremely helpful. We don’t do a lot of advertising, but our presence on online social sites has helped. We do a lot of videos and marketing on Facebook and Twitter.” Ceja said she and her children spend about an hour a day using Web 2.0 tools and social networking sites to market their wines. “It’s knowing what the customer wants and how to capture that customer’s attention,” she said, “and people are attracted to the millennials.” Ultimately, those who are quick to adapt may actually come out stronger than they were before the economic downturn. “In any kind of downtime, the industry gets stronger,” Steinthal said. “The innovators really show up, and so unfortunately, it means some folks drop out, but for the long-term health of the industry, the strong get stronger. Fisch agrees. “We’re entering a new economic age, and the people that can change and adjust will thrive,” he said. “The people that stick their head in the sand and say, ‘This is the way we’ve always done it and this is the way it will continue,’ I think will have challenges.”
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Rootstock invites you to our last event of 2009. We explore GREEN ISSUES in the winelands, viz Organic , Biodynamic , Bio-logic and Carbon Neutral . Join us to hear from our panel of producers how they are applying their approaches, and what they are doing to make a difference to our environment. Participate in the panel discussion which will ensue. We encourage active debate from all present. We can all learn from their experiences, and invite you to ask questions, in fact if you would like to email questions to us before the event - we will pass them on to the speakers. Emails to info@rootstock.co.za. Our panel consists of:
If you would like to contribute to the discussion - feel free to participate after they have made their 10 minute presentations.
Bookings are essential through http://www.rootstock.co.za/ ONLINE only. You need to register with Rootstock to attend. Rootstock membership is free - but you pay for events attended.
If you book and do not attend - you will still be invoiced accordingly. For any urgent matters please contact Judy Brower on 083 301 8569 or email info@rootstock.co.za



_______________________________________________________________
Mike Ratcliffe
Stellenbosch, South Africa
Phone: +27 (0) 21 88 444 10
Email: mike@warwickwine.com
Web: www.warwickwine.com
Web: www.vilafonte.com
From: Vanessa Ratcliffe [mailto:vanessa@southerndestinations.com]
Sent: Friday, October 30, 2009 9:30 AM
To: mike@warwickwine.com
Subject: RE: Visit to South Africa
Hi Mike,
Apologies for delayed reaction, I was away.
Many thanks for including SD in your comms to Susan. I will send her a introductory email.
And... big thanks for writing so favorably about us on the YPO website.
Neil has described Warwick's new Wine Safari concept, and I look forward to finding out more.
And..... Happy Birthday !!!!!!
See you at the golf day
Love Dort
From: Mike Ratcliffe [mailto:mike@warwickwine.com]
Sent: 28 October 2009 06:02 PM
To: 'Susan Kostrzewa'
Cc: 'Lew Rood'; 'Annareth Bolton'; james@warwickwine.com; Neil Ratcliffe; Vanessa Ratcliffe
Subject: Visit to South Africa
Hi Susan,
I would like to introduce you to Lew Rood (cc'ed) who is in charge of PR and relations for the Singita game reserve group – acknowledged globally as the leaders in high-end safari tourism in South Africa and Southern Africa. I have spoken to him about the brief for your article and he has expressed a willingness to accommodate you & Chris. He also has a NY based representative who would be able to work with you more closely to design this segment of your trip to one or more of their game lodges. I have told him that ideally you are looking to write an article on the safari experience with a focus on 'safari' food and Stellenbosch wines. I am sure that you would be able to give a better brief.
In principle, they would arrange to get you to the lodges from Stellenbosch and return you to Stellenbosch. They would also coordinate your itinerary during these days with a potential 2-3 day duration..
Lew: Susan is coming to South Africa as a guest of the Stellenbosch Wine Routes and her expenses to get to SA and on this leg of the trip are being taken care of by Stellenbosch. Please would you take over from here and be in touch with Susan? Dates are tentatively first 2 weeks of February 2010 – to be confirmed by Susan.
Full Name: Susan Kostrzewa
Job Title: Senior Editor
Company: Wine Enthusiast
103 Fairview Park Drive, Elmsford, NY 10523, USA
Phone: +1914 345 8463
Business Fax: +1914 592 0105
Susan: I have also cc'ed Neil & Vanessa at Southern Destinations www.southerndestinations.com who may be able to assist with any on the ground coordination or general information requests. Southern Destinations are the premier inbound high-end agents who specialise on the USA inbound market.
Kind regards
Mike
_______________________________________________________________
Mike Ratcliffe
Vilafonte Vineyards & Warwick Wine Estate
Stellenbosch, South Africa
Phone: +27 (0) 21 88 444 10
Email: mike@warwickwine.com
Web: www.warwickwine.com
Web: www.vilafonte.com
FOLLOW ME ON TWITTER www.twitter.com/mikeratcliffe
The letter, Quality wine in a box (September 21), highlights much of what is wrong with the wine industry. We hear of wine lakes on the one hand yet the price of wine continues its steady climb. Wine farmers plead poverty, and yet we are continuously presented with pictures of the great and the good unashamedly enjoying the life of Riley. Your wine columnist continues to opine in his quaint, elitist style, as if anyone who can’t afford a bottle at R150, or was it R1500-plus, is beneath him. Many wine writers give the impression that nothing below a certain price point will ever contaminate their nostrils, let alone their lips. Let’s get real here. Between boxed “carafe quality” and auction wines there is a whole array of, shall I call them “sumptuous, luscious, mouth- filling, affordable wines”? SA is truly blessed. Travel to Europe or the US at the moment. Many retailers are fighting for survival in these difficult times. While often avoiding discounting of brands, a marketing no-no, they are putting together “special offers”, co-branded deals, BOGOFs (buy one or two, get one free), and trying to maintain their relationship with their consumers by delivering value at affordable prices. Marketers should know that relationships that survive difficult times are potentially even better in the good times. Nothing wrong in trading down. Values such as trust, integrity and transparency are never to be taken for granted. Apart from the Sunday Times wine fundi, who has the confidence and knowledge to recommend wines from as little as R25 a bottle, most of the other writers deserve to be put back in their elitist boxes. If the wine industry wants to maintain, let alone grow, its “share of throat”, it will need to change.
Jeremy Sampson
FOLLOW ME ON TWITTER www.twitter.com/mikeratcliffe