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18 WINES&VINES June 2016 WINE INDUSTRY NEWS S anta Rosa, Calif.—With craft breweries popping up everywhere and craft dis- tilleries growing in popularity, many winery owners have considered wading into those ponds. A recent panel at the North Bay Business Journal Wine Conference, however, suggests that their synergy may not be great as it seems at first glance. "There's a potential synergy, but you have to keep them separate," noted Derek Benham, owner and CEO of Purple Wine + Spirits in Graton, Calif. "They overlap in the distribution network, but the spirits world is different." He added, "You may sell one or two bottles at a time, not cases." On the other hand, he can make and bottle some spirits in three weeks and sell them for $30 to $40 each at a 60% gross margin. Winery owner Amelia Ceja is more bullish on beer. The president of Ceja Vineyards and her family business partners created Carneros Brewing Co. with her brother-in-law Jesus, a master brewer from Anheuser-Busch in St. Louis, Mo. Ceja Vineyards has an active wine club, and Ceja says the club and mailing lists provided a welcoming market for beer. "We had built-in consumers. We could tell them via social media without spending a lot of money." She admitted that there's less profit in beer than wine, but it's easier, faster and less expen- sive to make beer—and the equipment can be used continuously, not just at harvest. That said, Ceja says the business has en- countered obstacles. Though her wine tasting room and Carneros Brewing are on the same property, they are required to have different entrances, and wine tasters can't take their glasses out into the beer garden to drink. Winery Exchange, another beverage com- pany, was a large supplier of private wine la- bels, but the firm changed its name to WX as it got into beer and spirits. Senior vice presi- dent of marketing and strategy Oren Lewin said he saw that WX could expand its market by producing multiple types of beverages. Lewin said he sees a future in wine aged in spirits barrels and spirits in wine barrels as well as some beer crossover. He concluded that craft wine, beer and spir- its will all benefit from growth. "They're not taking from each other. A rising tide lifts all boats," he said, acknowledging that some brands are rising faster than others. "Big brands beware," he added. —Paul Franson Wineries Gingerly Delve Into Beer and Spirits Since brewing takes place year-round, equipment at Carneros Brewing Co. (above) can be used more often than winemaking equipment. KEN FREEZE