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M ar K eti NG Focusing on direct sales builds success for four Napa wineries By Paul Franson Selling at the Source M any wineries are turning to their tasting rooms and other direct sales avenues to replace waning restau- rant and retail business, but some have depended on direct sales all along. With that in mind, we interviewed principals from four winer- ies (two of which share an owner) that are very successful at direct sales. All are along the Highway 29 corridor in Napa Valley, an area hard hit by the slowdown because of its predominance of premium wineries. The four wineries involved, however, are very different. Two wineries boast two of the biggest attrac- tions in Napa Valley. One is mining social media, and one is a new winery designed to focus on direct sales. alpha Omega Winery: Created to sell direct Alpha Omega Winery opened July 1, 2006, in space formerly occupied by Quail Ridge Winery just off Highway 29 in Rutherford. As part of the purchase, it acquired a public tasting permit, a real benefit since Napa County requires most new wineries to limit visitors to appoint- ments and have other restrictions. It was conceived to be consumer-direct from the beginning. Partner Robin Baggett had previously started Tolosa Winery in San Luis Obispo County (as well as Courtside Cellars, a custom crush facility), a winery dependent on sales through conventional distribution. That experience convinced him that he didn't want to depend on distribu- tion for sales. Now more than 90% of Alpha Omega's sales are direct. "The key is good wine and good people," Baggett says. He and partner Eric Sklar focused on high-quality wines, tell- ing Swiss-born winemaker Jean Hoefliger that he had "no budget" for materials and equipment for making top wines and could spend whatever he needed. "We also promised him we'd stay out of his way," Baggett jokes. The partners also hired famed consultant Michel Rolland to help. 80 Wines & Vines JAnUARY 2011 CaLiFOrNia Calistoga St. Helena Napa Valley Castello di Amorosa V. Sattui Rutherford Yountville Hwy 29 Baggett hired quality tasting room staffers who were focused on sales. "We believe in working hard and playing hard," says Baggett, who emphasizes that it's a team approach. The key to success is obviously the tasting room, since that's also where wine club members are recruited. "People won't join a wine club unless they've tasted the wine," he says. "Few join the club except at the tasting room." Because of the importance of the tast- ing room, it was vital to bring in visi- tors. To do this, the winery embarked on developing relationships with those who could help, including other tasting rooms, transportation companies, limousine driv- ers, concierges, destination management companies, restaurants and hotels. It also arranged events at the winery, encouraged wine club members to visit (of course) and offered tours and tastings for 10 to charities for auctions. Though equipped with a moat and a dungeon, Castello di Amorosa was built to sell wine. Alpha Omega Winery St. Supéry Alpha Omega does no advertising, but it makes sure it's on all the maps it can be. "Every visitor has a map," Bagget says, mentioning that the one given out by Meadowood resort is especially helpful. (Alpha Omega doesn't pay for placement on maps, but most include all wineries, even if they highlight advertisers.) The winery is open from 10 a.m. until 6 p.m., later than most wineries, but Bag- gett says there has never been a problem with unruly drunks in the late afternoon, as some have warned. Instead, Alpha Omega gets additional traffic. Within the tasting room, the focus is on hospitality and creating a memorable experience for guests, combined with salesmanship. The managers enforce a rule to greet visitors with a smile within 15 seconds and make people feel welcome. The goal is to remove the snobbishness and intimidation that are often barriers at tasting rooms, turning the experience into a subtle interview. "People purchase things from people they like," Baggett says, adding that he insists everyone be treated well: "You never know who the hot prospects are."