Wine Business x COVID_19: A Roundtable Discussion

Cru | Wine Industry Podcast

A few days ago I had the idea to get a handful of amazing wine professionals together to discuss what’s actually going on in the wine industry right now during this COVID_19 quarantine time. I wanted to get a pulse on how everyone is feeling, what sales are looking like in various markets, how this immediate transition to everyone pushing sales online is both working and not working out for folks. I wanted to understand what people are doing to authentically connect with their audiences while offering support and where these professionals think the industry and market as a whole will be when we come out of this thing. I sat down with 9 incredible professionals from Sonoma and Napa Counties to enjoy a quarantini, but more importantly to have a real conversation of the trials and tribulations we’re going through. These amazing folks provide a lot of insight and new perspective along with actionable tactics, strategies, tools to apply to any kind of wine business you’re running or working in. We also discuss the programs that have been setup to help those who have now been rendered unemployed, are homeless, or have shut their businesses all together.

PANEL INCLUDES

Blair Guthrie, owner/winemaker of Guthrie Family Wines and Stewart Cellars in Sonoma and Napa

Amanda McCrossin, former wine director of Press restaurant in St. Helena and long-time YouTuber, Instagramer, and marketer

Dan Petroski, owner/winemaker of Massican and winemaker at Larkmead Vineyards in Calistoga

Josh Phelps, owner/winemaker of Grounded Wine Co. in St. Helena

Sara Morgenstern, former Sonoma County beverage director and director of operations for multiple small brands such as Ruth Lewandowski Wines

Michelle Lipa, owner of Trig Collective a marketing and branding agency based in Napa

Chelsea Boss, a marketing and management consultant based in Napa

Woody Hambrecht, co-founder & co-CEO of Haus, a venture backed low-alcohol aperitif

All of the questions that we discussed will be in the show notes along with the links to all of the recourses we mention throughout our chat.

RESOURCES

Ship Ohi: Ohi enables same-day delivery for e-commerce brands by building the ‘Amazon Prime Now’ experience with next-generation technology.

Kevin Kelly's One Thousand True Fans: If you could get 1000 True Fans to support you by buying $100 worth of what you create every year, you would earn an income of $100,000 a year. That sounds a bit like a get-rich-quick scheme. 1000 True Fans is not that. It's a get-a-good-income-slowly income model. It requires hard work, but once you’ve built up 1000 True Fans, you are free forever to live as an independent creator earning good money making what you love.

A Theatre Guide to Technology (or How I Learned to Live with Corona): Dear wonderful humans, artists, entrepreneurs and educators, you are heroes. Fuck this shit. Let’s make things, shall we? Deep breaths, follow the bullet points, and when you feel confident enough… Get creative. It’s what we do best. Right? You got this.

Compline Wine Bar: Buy our health care workers and first responders a meal!

The Independent Restaurant Coalition: formed to the save local restaurants affected by COVID-19. IRC is founded on the simple belief that there is power to affect legislative change if we unite our voice. This national movement is quickly growing and EVERYONE is welcome to join. Together, as small businesses across this country, we represent up to 4% of the nation's GDP.

Dining Bonds Initiative: Due to the impact that the coronavirus COVID-19 has had on the restaurant community, a collective of restaurant industry professionals have set a global initiative in motion to get funds into the hands of restaurants NOW, even if they are temporarily closed. A Dining Bond works like a savings bond, where you can purchase a "bond" at a value rate to be redeemed for face value at a future date.

ROAR (Relief Opportunities for All Restaurants): ROAR stands united to act immediately. We know that decisions are being made right now. These decisions will shape the future in ways both known and unknowable. We must act swiftly to give our community the best possible chance for a positive outcome. Here’s is our 8 point plan to be in a position to reopen, rehire, and eventually help our community:

QUESTIONS

-At the end of the first week of shelter-in-place here in Northern California, Carlo what is the general feeling from the consensus of people in your peer groups? How about for you Sara?

-Michelle and Chelsea, on the communication front how are you and clients communicating with client’s current customer base offering them reassurance and how are you asking for support? What’s the language you’re using?

-As we all know, tasting rooms are closed which make up roughly 28% of sales for many companies and in-person tastings are obviously no longer occurring as with restaurants, which make up roughly 20% of sales for businesses, have essentially halted. In an effort to pivot and keep driving sales and cash flow, Blair, what are you all implementing in your businesses and seeing other companies doing?

-Josh, how are retail sales currently factoring into your sales mix and are those sales holding on?

-Dan and Josh, at the higher-end price point of the market, are we seeing a shift in sales of bottle prices say over $50?

-Many people are bottling this week and last week which means that many people will be sending out their spring releases soon. Woody, Haus launched a brand new product last week. First, what was the response like from your customers and secondly, is there anything that you learned in launching during this time that has differed from previous launches? Is there anything that brands should be aware of when sending out new releases and launching new SKUs over the next six months or so?

-Amanda, currently the cost of paid advertising has gone down. Facebook Ads for example are very affordable currently for the . How are we seeing more companies utilizing these cheaper resources right now for both paid and organic marketing?

-How does a brand balance retaining a level of exclusivity while still getting it's name out there in a bigger way through virtual tastings, etc?

-If we look at China and their timeframe of the economy coming back online, we’re looking at a 4-5 month runway. With those projections we’d be looking at June 1st coming back up for air. Michelle, how are you in your businesses planning for the next 4-5 months and what are some of your predictions of what the market could look like come June 1st?

-What are some benefit and/or aid programs that are starting that people who have been laid off can take advantage of?