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G U ES T E D I T OR I A L Viewpoint We welcome commentaries from readers on issues of current interest in the wine industry. Send your topic idea to edit@winesandvines.com, and we'll contact you. Melding Business and Wine Production By Paul Franson O ver the years, I've attended a few individual sessions of the University of California, Davis, Wine Executive Program and found them very interesting. This year I got a chance to immerse myself in the whole program. Although it was a big time commitment, I jumped at the chance. I knew that the program aimed to wed experts from the university's wine and business faculties to present information aimed at wine business and marketing professionals as well as winemakers and growers. Though dubious about whether that was possible, I knew it would be useful to me, for my work crosses both worlds. It turns out, it did work. The program is held at the UC Davis Conference Center next to the Robert Mondavi Institute for Wine and Food Science, home of the new teaching and research winery and experimental vineyard. The program attendees included a diverse group of people: winery owners from around the country and even the world, winemakers and growers from big and small wineries, and managers from large wine companies in California's Central Valley. The first morning included optional "boot camps" in either accounting and finance for non-financial managers or grapegrowing and winemaking fundamentals aimed at business managers. Enology professor Andy Waterhouse and Doug Adams, professor and biochemist in the Department of Viticulture and Enology, presented a fast-paced but comprehensive session that tied the subject together. The actual Wine Executive Program began after lunch with an overview by Robert 82 W in es & V i ne s SE P T E MBE R 20 13 Smiley, former dean of the UCD Graduate School of Management and current director of the Wine Executive Program. Smiley, a familiar figure at the annual Wine Industry Financial Symposium, gave an insightful talk about the global wine business and different strategies that wine companies adopt to succeed. Then came a talk about differentiating wine brands, including developing a Andy Walker's compelling and sometimes chilling presentation would fascinate anyone in the industry. "story" to appeal to chosen customers. It was given by Brian Dunbar, managing partner and director of creative services at David & Goliath, a good example of an industry speaker augmenting those from the university. Tuesday brought two talks focusing on the technical side of the business. Andy Walker, chair of the Department of Viticulture and Enology, discussed challenges facing growers—from diseases and pests to costs and mechanization. It's hard to believe Walker's compelling and sometimes chilling presentation wouldn't fascinate anyone in the industry. Next came a topic dear to me, how to make the best quality wine under challenging conditions, notably economic pressures. Anita Oberholster, cooperative extension specialist in enology, ran though the winemaking process from harvest to bottling, pointing out what expenditures have the most impact. In the process she, like Walker, debunked many cherished myths in the wine world. Two sessions that I almost skipped but turned out to be among the highlights of the program: associate professor Robert Yetman's talks about financial management, then strategic cost management. Yetman, a member of the Graduate School of Management staff, was able to make both sessions fascinating (and understandable) while highlighting important concepts little appreciated at most wine companies. The last day featured three talks that hit home: vineyard operations of the future presented by Andy Walker (who emphasised pest, water and labor issues), and the winery of the future, a fascinating discussion by David Block, a chemical engineer and head of the V&E Department. He subtly reminded us that while winemaking may be an art and craft, it's also a chemical process. Finally Michael Maher, the senior vice president and general counsel for Jackson Family Wines, discussed legal issues including direct shipping, franchise and tied-house laws and labeling and branding. Looking back, I think the Wine Executive Program presented issues and material that are valuable to those making wine and those marketing it as well as administrators and executives. Its success was due not only to the subject but also the chosen speakers, most of whom were excellent. Who would expect a discussion of cost accounting to be so interesting? It's a big time and financial commitment (about $4,600 plus lodging), but likely to increase the skills and insight of all those who attended. It certainly did for me. Paul Franson has written about wine, food and the wine country for both industry and consumers for more than 17 years from Napa Valley after escaping from Silicon Valley. He was a home winemaker until he moved to Napa, where he found too many good wines to drink his own.