Issue link: http://winesandvines.uberflip.com/i/766392
152 WINES&VINES January 2017 BUSINESS PRACTICAL WINERY & VINEYARD control over costs. It is not a good time to buy vineyards, they are pretty pricey. The prices are high and we are not willing to change things to a degree that some people are." " Taking the costs out as we go forward, so we are moving aggressively in all regions. With the exception of Napa, our vineyards are being built so they can be mechanically pruned. A tremendous amount of labor goes into pruning and canopy management that has to be mecha- nized. We have to do it, (and) it has been common in Australia for many years. Wineries are accepting it in the Central Valley and on the Central Coast. We are now planting vineyards in Sonoma County that will be mechanically pruned." " Wine consumption in the United States has increased every year since 2000, and we do not see that slowing down. In fact, we have found that today's consumers are trading up." " If a recession comes upon us again, there will be a little softness, but we expect the industry to continue to grow. Not as fast as in the past, but premiumization is here and people are trading up at all seg- ments of our industry." " We will see a true recession. I am not taking any hard, fast steps, im- plementing soft actions, conservative budgeting. I have implemented a couple of plans to accelerate growth and sales activities in the market to try to beat someone to the market." " We are downsizing. I would probably do that whether (there was) a recession or not, but it would be particularly important in a reces- sion. We are eliminating fat wherever it can be eliminated. We have to make a profit now." " We are certainly looking at retooling our sales force, making it lighter if you will. Fewer levels of reporting between the area manager and the CEO, for example, to keep close to the information at hand and act accordingly." Q How are you dealing with the growing problem of water availability and climate change? " There will be issues in the future. As for climate change, we are getting involved in the Pacific Northwest and Oregon. We think those growing regions are going to be a beneficiary in 30, 40 and 50 years. Trying to diversify our infrastructure in that area is a smart play for the future. On the water side here in California, we have been concerned with some of the movements of water from Northern California to Southern California. We have been involved in lobbying efforts to keep water here in Northern California." " Climate change is real whether it is man-made or not. We are in- vesting in new technologies for water. We have been blessed with high-quality and high-quantity resources of water for all our vine- yard sites in the North Coast. The North Coast is a good place to be in the drought." " We are starting to look elsewhere outside the country. We feel, long- term, the Central Valley probably cannot support grapes because they will be crowded out by other crops and shortage of water. The Central Valley will be a real problem for grapes down the road. We are looking to obtain bulk wine from Argentina, Chile and Australia. We are making the provisions and contacts with people to line up possible sources of bulk wine." You know how good your Zinfandel is... Promote your wines to leading Zinfandel enthusiasts and extend your winery's relationship in the market. JoinUs! We are champions of Zinfandel— America's Heritage Wine Become part of our proud legacy zinfandel.org • 530-274-4900 Zinfandel Advocates & Producers is a 501(c)(3) non-profit organization. ZAP is dedicated to advancing public knowledge of and appreciation for American Zinfandel and its unique place in our culture and history.