Wines & Vines

September 2011 Winery & Vineyard Economics Issue

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SEPTEMBER NEWS New age of telemarketing the consumer are often welcomed and can yield a very high rate of sales, said panelists at the Wine Industry Technology Symposium. Judd Wallenbrock, general manager of N 10,000-case Michel-Schlumberger winery and owner/general manager of 2,000-case Humanitas winery contracted with profes- sional wine telemarketers to call the wine club list. They reached about 50%, closed sales on 50% of the right parties reached and generated $270,000 in two weeks. The sales company then called the non-club members who had bought from Michel-Schlumberger before and sold another $30,000 of wine. winesandvines.com Learn more: Search keyword "telemarketing." —Jim Gordon apa, Calif.—Well-timed telemarketing calls from a winery already familiar to Demand, Prices Bubbling S anta Rosa, Calif.—An unusual sight greeted members and guests who at- tended the 59th annual meeting of Learn more: Search keyword "Allied Growers." Allied Grape Growers July 16 in Santa Rosa: an optimistic Nat DiBuduo. Although the long-time president and CEO of the grapegrowers' marketing cooperative had spo- ken of some positive signs at the Unified Wine and Grape Sympo- sium in January, seven months later he was almost ebullient. Both prices and demand for winegrapes are up this season. "We are confident that all of the Al- lied growers' grapes in the North Coast will be sold before harvest, and at higher prices," he declared. "Chardonnay is sold- out statewide. Demand outstrips supply in the San Joaquin Valley, and we're getting strong prices. "I've never been able to say this before in my 12-year tenure, but Allied may be Allied Grape Growers report boom year in California winesandvines.com sold-out of all San Joaquin Valley grapes by the end of July." This optimistic report follows years when a gloomy DiBuduo bemoaned the market for winegrapes and pleaded with growers not to plant—at least not without firm contracts. "This is my 12th harvest and annual meeting presentation to you since joining Allied's manage- ment in May 2000," he said. "When I was hired, a colleague called to congratulate me—then asked if I was crazy! It was a difficult year with an oversupply of grapes, and no one was interested in buying. As I got into the job, I remembered that demand and prices went in cycles, so I looked forward to the upcycle." It looks like that upcycle has finally ar- rived. "What a difference a year makes," DiBuduo said. —Paul Franson Wines & Vines sePTeMBeR 2011 17

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