Wines & Vines

February 2011 Barrel Issue

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WINEMAKING it also has distribution in eight other states. Under Michigan law, Mawby can be his own distributor in-state, a handy cost-cutter. Chateau Frank, despite its separate building and licensing, was able to lever- age the reputation of neighboring Vinifera Wine Cellars and still mainly sells through the tasting room, with some retail and interstate distribution. But if the goal is a major national pres- since it was founded in 1989, gruet Winery has averaged 10% growth per year. bottled as "shiners" and snapped up by winery clients. If your production is small enough, like Lake Ridge's 1,600 cases, selling it at full retail through the tasting room and wine club should be straightforward. If, like South Coast, you have a restaurant- resort-spa complex on site, that can take care of half your 10,000 cases. The L. Mawby winery gets 55% of its revenues from direct-to-consumer sales in the tasting room and through the web, but ence, more is needed. Since its founding, Gruet has expanded steadily, averaging 10% growth per year. An early break was finding an enthusiastic West Coast distributor, the Monterey Bay Wine Co., which saw the value/price potential in Gruet's wines. Another piece of good fortune came one day, as marketing head Sofian Himeur tells it, when Bonny Doon winemaker Randall Grahm happened to be in the office of Michael Skurnik, a major East Coast distributor. Grahm spotted a bottle of Gruet bubbly Skurnik was ignoring (the New Mexico problem), told Skurnik he had to try this, and a fruitful relation- ship was born. TonnellerieGaronnaise_Dir11.qxp 10/6/10 10:35 AM Page 1 Now Gruet has distribution in 49 states— "and if anybody knows someone in North Dakota," Himeur says, "let us know." For more than 20 years, Argyle has built up its market the old-fashioned way— sending out samples, winning over critics, getting restaurant placements, word of mouth. Even at this point, Soles admits that for a winery that aims high for both its still wines and its sparklers (and has gotten much recognition for both), the messaging can still be a little confusing. The bottom line in the sparkling busi- ness, as everybody emphasized, is that the people involved have to have a passion for the stuff. The only advantage small producers have is their ability to pay more attention to their grapes and their wines—and being able to tell the story be- hind them. These producers are not trying to become the next Domaine Chandon or Mumm Napa; the model, frequently men- tioned, is much more like the successful small-house Champagne grower-vintners. Fred Frank had one more useful point, which transcends any particular business model. "Sparkling wine," he says, "has to dispel the notion that it's only for celebra- tion. It deserves a place on the dinner table, especially at reasonable prices." Now if that idea caught on with wine consumers, a lot more wineries would figure out how to get into the business. 42 Wines & Vines FeBRUARY 201 1

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