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26 WINES&VINES October 2016 T he book Blue Ocean Strategy, authored by W. Chan Kim and Renée Mauborgne, makes this observation: "Today's overcrowded industries competing head-on results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Lasting success comes not from battling competitors, but from creating blue oceans of untapped new market spaces ripe for growth." Brands that are different can grow much more easily because their market is a big blue ocean. This slogan from a paradoy motivational poster could have been written about the wine business: "Conformity: When people are free to do as they please, they usually imitate each other." Common wisdom states that you must revere tradition and do things "the way the wine industry does it." Yet many of the most successful California brands did just the opposite. Kendall-Jackson made its Chardon- nay slightly sweet. Purists said the winery wasn't making Chardonnay the "right way," but brand-loyal consumers loved it. It has had enormous success. The point of dif- ferentiation could be a new varietal such as Bob Lindquist of Qupé pioneering Syrah in the 1980s, or a new appel- lation like Steve and Pamela Storrs' dedication to the Santa Cruz Mountains. What is your story, your mission? So often a winery's "About Us" page reads like this: "It was the dream of wealthy corporate-types and wine lovers Jane and John Doe to someday plant a vineyard, build a winery and make hand-crafted, artisan wines. Several years later, that dream has come true, with our ostentatious winery building making the cover of Modern Narcissist mag- azine." (OK, I made up that last part.) While this prose appeals to the owners, it is unlikely to connect with consumers. They don't react by thinking, "Oh, you're already rich and always wanted your name on a wine label, I feel a connection! Sign me up for the 12-bottle wine club." I would argue that if wanting to be in the wine business was your reason for being in the wine business, then you have completed your mis- sion. The problem is your mission wasn't focused enough on creating a dif- ferentiated business. It may be why your tasting room is empty, your wines aren't selling and you are low on cash. Every year I give a guest lecture about entrepreneurship to students in Napa Valley College's wine program. I ask a few students to describe the winery where they work and its Chardonnay, if they make one. The first student says something like, "We're a family winery, very dedicated to making great wine. We believe wine is made in the vineyard. Our Chardonnay is barrel fermented in the traditional French style." The second earnestly explains, "I too work for a family winery, very dedicated to making great wine; our Chardonnay is barrel fermented, etc." The third says essentially the same thing, maybe subbing Cabernet made in the Bordeaux style for Chardonnay. I then ask the rest of the class which one they'd buy. The answer is, "I don't know, they all seem pretty good." Re- gardless of wine quality, the brands are undifferentiated commodities to the consumer. Let's look at a few wineries that found success through brand differentiation. A visit to Catalonia Markus and Liz Bokisch own Bokisch Vineyards in Lodi, Calif. The winery started in 2001 and has slowly increased production to 6,000 cases selling between $18 and $25 per bottle. They are exclusively focused on Spanish varietals such as Albariño, Garnacha, Graciano, Tempranillo and Verdejo. The Bokisches did extensive research to locate ideal regions for growing Spanish varietals. Early in his career, Markus Bokisch worked in the Vin de Mistral program at Joseph Phelps Vineyards, which gave him exposure to warm-climate Rhone varietals and various California regions (most importantly Lodi). Then he moved to Spain for two years, and he learned that Tempranillo, Al- bariño and other Spanish grape varieties would likely do well in Lodi. Their use of Spanish cultivars alone would differentiate Bokisch Vineyards among the thousands of wine brands available in the United States, but their con- nection to Spain goes much deeper. Markus Bokisch is American-born, but his n ANDY STARR Brand Differentiation Is the Key to Success Winemaking