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	<title>Comments on: What wineries can learn from the US auto industry.</title>
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	<link>http://www.redwinebuzz.com/winesooth/2009/04/13/what-wineries-can-learn-from-the-us-auto-industry/</link>
	<description>searching for truth in wine</description>
	<pubDate>Wed, 08 Sep 2010 10:29:30 +0000</pubDate>
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		<title>By: Arthur</title>
		<link>http://www.redwinebuzz.com/winesooth/2009/04/13/what-wineries-can-learn-from-the-us-auto-industry/#comment-1290</link>
		<dc:creator>Arthur</dc:creator>
		<pubDate>Wed, 15 Apr 2009 16:28:51 +0000</pubDate>
		<guid isPermaLink="false">http://www.redwinebuzz.com/winesooth/?p=2302#comment-1290</guid>
		<description>Thanks again Dylan,

Your assessment of my point of reference is quite accurate. 

I come from a country where - for a number of cultural and political reasons - individualism took a distant second seat for the benefit of the whole group. So, for me, that which benefits the whole benefits the parts in turn. 

I suppose that at the end of the day, individualism trumps higher collective goals in the U.S. I don’t mean to sound bitter about that but rather see it as a matter of fact. That notwithstanding, maybe we’ll have to put some of that individualism on the back burner – as individuals and as a country – for the benefit of future generations.</description>
		<content:encoded><![CDATA[<p>Thanks again Dylan,</p>
<p>Your assessment of my point of reference is quite accurate. </p>
<p>I come from a country where - for a number of cultural and political reasons - individualism took a distant second seat for the benefit of the whole group. So, for me, that which benefits the whole benefits the parts in turn. </p>
<p>I suppose that at the end of the day, individualism trumps higher collective goals in the U.S. I don’t mean to sound bitter about that but rather see it as a matter of fact. That notwithstanding, maybe we’ll have to put some of that individualism on the back burner – as individuals and as a country – for the benefit of future generations.</p>
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		<title>By: Dylan</title>
		<link>http://www.redwinebuzz.com/winesooth/2009/04/13/what-wineries-can-learn-from-the-us-auto-industry/#comment-1288</link>
		<dc:creator>Dylan</dc:creator>
		<pubDate>Wed, 15 Apr 2009 16:16:37 +0000</pubDate>
		<guid isPermaLink="false">http://www.redwinebuzz.com/winesooth/?p=2302#comment-1288</guid>
		<description>Arthur, I believe it depends on the goals of the winery. If the goal of a winery is to appeal to a mass market, then a shot-gun approach is correct for them. If a winery has ambitions of producing their own unique style, obviously a more honed approach at lower yield is the way to go. It's not that there is a wrong answer here, it's more so a matter of choice and understanding the result. As long as a winery understands that a "shot gun" approach isn't going to help them win over the palettes of niche wine lovers, then they won't be fooling themselves. You obviously come from the background of a wine lover who explores his tastes so it pains you to see what could be deemed "the wasted potential" of wineries that do not cater to better focus. Ultimately, it's important a winery stays true to itself and the goals it wishes realize.</description>
		<content:encoded><![CDATA[<p>Arthur, I believe it depends on the goals of the winery. If the goal of a winery is to appeal to a mass market, then a shot-gun approach is correct for them. If a winery has ambitions of producing their own unique style, obviously a more honed approach at lower yield is the way to go. It&#8217;s not that there is a wrong answer here, it&#8217;s more so a matter of choice and understanding the result. As long as a winery understands that a &#8220;shot gun&#8221; approach isn&#8217;t going to help them win over the palettes of niche wine lovers, then they won&#8217;t be fooling themselves. You obviously come from the background of a wine lover who explores his tastes so it pains you to see what could be deemed &#8220;the wasted potential&#8221; of wineries that do not cater to better focus. Ultimately, it&#8217;s important a winery stays true to itself and the goals it wishes realize.</p>
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		<title>By: Arthur</title>
		<link>http://www.redwinebuzz.com/winesooth/2009/04/13/what-wineries-can-learn-from-the-us-auto-industry/#comment-1272</link>
		<dc:creator>Arthur</dc:creator>
		<pubDate>Tue, 14 Apr 2009 18:14:17 +0000</pubDate>
		<guid isPermaLink="false">http://www.redwinebuzz.com/winesooth/?p=2302#comment-1272</guid>
		<description>Barbara,

Good points. To your second paragraph: the artisans should all the more seek to define themselves with hallmark wines rather than making essentially the same lineups as the big conglomerates.</description>
		<content:encoded><![CDATA[<p>Barbara,</p>
<p>Good points. To your second paragraph: the artisans should all the more seek to define themselves with hallmark wines rather than making essentially the same lineups as the big conglomerates.</p>
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		<title>By: Barbara Keck of WineBizNews blog</title>
		<link>http://www.redwinebuzz.com/winesooth/2009/04/13/what-wineries-can-learn-from-the-us-auto-industry/#comment-1271</link>
		<dc:creator>Barbara Keck of WineBizNews blog</dc:creator>
		<pubDate>Tue, 14 Apr 2009 17:39:53 +0000</pubDate>
		<guid isPermaLink="false">http://www.redwinebuzz.com/winesooth/?p=2302#comment-1271</guid>
		<description>Wow, this topic requires a lot of thought and analysis to draw parallels and solid conclusions.  But one of the problems with the US car industry is that the big players have so much market share, and so many distributors/dealers wrapped up that it has become almost a monopoly situation that squeezes out TRUE innovation. Like fuel efficient cars....   
     I do have some concerns about the increasing concentration in the wine industry, and fear that BIG WINE  will also squeeze out artisans and innovators. While I appreciate your stick-to-the-knitting point, one important way that smaller wineries can compete is through diversified offerings.</description>
		<content:encoded><![CDATA[<p>Wow, this topic requires a lot of thought and analysis to draw parallels and solid conclusions.  But one of the problems with the US car industry is that the big players have so much market share, and so many distributors/dealers wrapped up that it has become almost a monopoly situation that squeezes out TRUE innovation. Like fuel efficient cars&#8230;.<br />
     I do have some concerns about the increasing concentration in the wine industry, and fear that BIG WINE  will also squeeze out artisans and innovators. While I appreciate your stick-to-the-knitting point, one important way that smaller wineries can compete is through diversified offerings.</p>
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		<title>By: Lorne McMillan</title>
		<link>http://www.redwinebuzz.com/winesooth/2009/04/13/what-wineries-can-learn-from-the-us-auto-industry/#comment-1270</link>
		<dc:creator>Lorne McMillan</dc:creator>
		<pubDate>Tue, 14 Apr 2009 17:09:04 +0000</pubDate>
		<guid isPermaLink="false">http://www.redwinebuzz.com/winesooth/?p=2302#comment-1270</guid>
		<description>Very good industry comparison and one we have used ourselves as a research company: we do research both in the auto industry and the wine industry.  Fully agree that the 'shotgun' approach to a wide array of products (as GM) leads to a lack of center, not only for GM but for most of the brands within it, there's few leading products any more, and same can be said for many wineries.  If you don't stand for something clear, you don't really stand.  
One reason perhaps for continued tinkering with new wines is the 'star' culture of some wine makers - if a star wine maker is brought in to create a name for the winery, making a superb cab or chardonnay is great, but then what do they do?  These folks are faced with years of work producing their creations, work life then becomes about consistent maintenance, not about invention.  The temptation to go off and create something new must be intense.  Same applies to car designers.  

As a society we revere invention but mostly ignore consistency, but we know that good wine, and good cars, need both to flourish.</description>
		<content:encoded><![CDATA[<p>Very good industry comparison and one we have used ourselves as a research company: we do research both in the auto industry and the wine industry.  Fully agree that the &#8217;shotgun&#8217; approach to a wide array of products (as GM) leads to a lack of center, not only for GM but for most of the brands within it, there&#8217;s few leading products any more, and same can be said for many wineries.  If you don&#8217;t stand for something clear, you don&#8217;t really stand.<br />
One reason perhaps for continued tinkering with new wines is the &#8217;star&#8217; culture of some wine makers - if a star wine maker is brought in to create a name for the winery, making a superb cab or chardonnay is great, but then what do they do?  These folks are faced with years of work producing their creations, work life then becomes about consistent maintenance, not about invention.  The temptation to go off and create something new must be intense.  Same applies to car designers.  </p>
<p>As a society we revere invention but mostly ignore consistency, but we know that good wine, and good cars, need both to flourish.</p>
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		<title>By: Randy</title>
		<link>http://www.redwinebuzz.com/winesooth/2009/04/13/what-wineries-can-learn-from-the-us-auto-industry/#comment-1268</link>
		<dc:creator>Randy</dc:creator>
		<pubDate>Tue, 14 Apr 2009 16:19:50 +0000</pubDate>
		<guid isPermaLink="false">http://www.redwinebuzz.com/winesooth/?p=2302#comment-1268</guid>
		<description>Nice piece and great job correlating industry issues with trends happening outside the wine world.  In biz school they call it your "core competence"- what you're good at... or niche.  American's used to be good at niche innovation.  Do what you're good at, become an expert in the field and you'll do well.  Euro biz perspective is similar to current trends in this industry.  Become competent at all facits of a particular industry or at least understand well the intricate workings of all parts.

When I assumed the farming responibilities of my family's 9 acre ranch in the RRV in 2000, I decided to focus on one variety, Zinfandel.  Because that's all I initially worked with, I really felt comfortable with what the old school approach was which eventaully allowed me to experiment with growing coditions, cultivation practices, etc.  From a marketing perspective, I was told folks leaving my tasting room would remember TWO things!  That's it!  And it isn't necessarily "elegant Zin" and "Harvest Moon" like I'd like, rather who knows... the dog on the floor, the cute taster next to them, etc SOOOO, it's really important that your clients can fill inthe blank...  "You gotta go to (insert your winery name) for (insert your flagship wine)!"

Afer establishing yourself as a House of ____, then you can flirt with other varieties and be successful at it.

Good luck all!</description>
		<content:encoded><![CDATA[<p>Nice piece and great job correlating industry issues with trends happening outside the wine world.  In biz school they call it your &#8220;core competence&#8221;- what you&#8217;re good at&#8230; or niche.  American&#8217;s used to be good at niche innovation.  Do what you&#8217;re good at, become an expert in the field and you&#8217;ll do well.  Euro biz perspective is similar to current trends in this industry.  Become competent at all facits of a particular industry or at least understand well the intricate workings of all parts.</p>
<p>When I assumed the farming responibilities of my family&#8217;s 9 acre ranch in the RRV in 2000, I decided to focus on one variety, Zinfandel.  Because that&#8217;s all I initially worked with, I really felt comfortable with what the old school approach was which eventaully allowed me to experiment with growing coditions, cultivation practices, etc.  From a marketing perspective, I was told folks leaving my tasting room would remember TWO things!  That&#8217;s it!  And it isn&#8217;t necessarily &#8220;elegant Zin&#8221; and &#8220;Harvest Moon&#8221; like I&#8217;d like, rather who knows&#8230; the dog on the floor, the cute taster next to them, etc SOOOO, it&#8217;s really important that your clients can fill inthe blank&#8230;  &#8220;You gotta go to (insert your winery name) for (insert your flagship wine)!&#8221;</p>
<p>Afer establishing yourself as a House of ____, then you can flirt with other varieties and be successful at it.</p>
<p>Good luck all!</p>
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		<title>By: Larry Stanton</title>
		<link>http://www.redwinebuzz.com/winesooth/2009/04/13/what-wineries-can-learn-from-the-us-auto-industry/#comment-1267</link>
		<dc:creator>Larry Stanton</dc:creator>
		<pubDate>Tue, 14 Apr 2009 15:50:54 +0000</pubDate>
		<guid isPermaLink="false">http://www.redwinebuzz.com/winesooth/?p=2302#comment-1267</guid>
		<description>Very nice article, Art, and certainly apropos of the times. We here at Cerro Prieto Vineyard &#38; Cellars are tiny. Our total acreage is a mere 20 acres, and our yields are all below 3T/acre, so at best we could harvest 60 Tons, except that our cold bottom valley vineyard can only grow Pinot Noir 
due to late spring frosts, and worse, early fall frosts. The latter, has virtually killed us every harvest since 3 yrs ago, when we decided to graft over from Merlot and Cab to something that comes off before Sept 15th, the day our cold valley freezes. Our total tonnage is reduced yet again with Pinot, which we allow to hang no more than 2 T/acre, and frequently is half of that. 

Of the grapes we produce, we sell 90% and make wine from 10% of the total, giving us only 200-400 cases/ yr, making us not only a boutique wine producer, but a "teeny" boutique at that. John Kelly's reference to the Chinese proverb, "He has many knives, but none are sharp", is doubly important to small producers such as Cerro Prieto. If we make a mistake with our small volume, the bad result is amplified many times moreso than a large producer having an unusual variety fall on its face. By necessity we have to take what the land gives us, and that is cold valley vineyard Pinot, and the death defyingly steep mountainsides/ hillsides which produce Cab, Syrah, and Merlot. 

You are spot on, Art, about wineries falling flat on their faces with obscure wines found in a corner of Tuscany, or a small canyon off the Douro Valley in Portugal. We have neighbors, acquaintances and friends that have had this exact scenario befall them, and the only thing that has happened with wines they shouldn't be producing is that they are just spending more money having to store unsold and unwanted varieties. The adage "find something you are good at and stick with it" is doubly important today. Some large, well known producers can get away with non- mainstream wines( that nobody buys) by sending them out in their 4-times-a-yr wine club shipment, which I find unfair, maybe even odious. Yes, they do get rid of wines they shouldn't be making, but they are losing customers because of it.

Back to your point of comparing the similarities of the wine and auto industries: we are already seeing the shotgun approach, or the GM approach, of multiple brands not getting sold, and consolidation taking place. There has never been a better time to do what one does well...and stick to it, than now. It is no secret that some wine bars, hotel bars, and restaurants actually want only 1 or 2 of a winery's many wines. Reason? They don't want to have the same winery brand occurring more than once or twice on their wine list. They prefer to have multiple brands, and to the point, get from each winery what they are known for, and therefore, make the best. Their second and third tier wines are no longer welcome in these depressed times of "consumer is king".

Your premise of "being a jack of all trades and master of none" is spot on. It is painfully obvious at both the micro and macro levels. Vintners and wineries would be well advised to follow your advice.</description>
		<content:encoded><![CDATA[<p>Very nice article, Art, and certainly apropos of the times. We here at Cerro Prieto Vineyard &amp; Cellars are tiny. Our total acreage is a mere 20 acres, and our yields are all below 3T/acre, so at best we could harvest 60 Tons, except that our cold bottom valley vineyard can only grow Pinot Noir<br />
due to late spring frosts, and worse, early fall frosts. The latter, has virtually killed us every harvest since 3 yrs ago, when we decided to graft over from Merlot and Cab to something that comes off before Sept 15th, the day our cold valley freezes. Our total tonnage is reduced yet again with Pinot, which we allow to hang no more than 2 T/acre, and frequently is half of that. </p>
<p>Of the grapes we produce, we sell 90% and make wine from 10% of the total, giving us only 200-400 cases/ yr, making us not only a boutique wine producer, but a &#8220;teeny&#8221; boutique at that. John Kelly&#8217;s reference to the Chinese proverb, &#8220;He has many knives, but none are sharp&#8221;, is doubly important to small producers such as Cerro Prieto. If we make a mistake with our small volume, the bad result is amplified many times moreso than a large producer having an unusual variety fall on its face. By necessity we have to take what the land gives us, and that is cold valley vineyard Pinot, and the death defyingly steep mountainsides/ hillsides which produce Cab, Syrah, and Merlot. </p>
<p>You are spot on, Art, about wineries falling flat on their faces with obscure wines found in a corner of Tuscany, or a small canyon off the Douro Valley in Portugal. We have neighbors, acquaintances and friends that have had this exact scenario befall them, and the only thing that has happened with wines they shouldn&#8217;t be producing is that they are just spending more money having to store unsold and unwanted varieties. The adage &#8220;find something you are good at and stick with it&#8221; is doubly important today. Some large, well known producers can get away with non- mainstream wines( that nobody buys) by sending them out in their 4-times-a-yr wine club shipment, which I find unfair, maybe even odious. Yes, they do get rid of wines they shouldn&#8217;t be making, but they are losing customers because of it.</p>
<p>Back to your point of comparing the similarities of the wine and auto industries: we are already seeing the shotgun approach, or the GM approach, of multiple brands not getting sold, and consolidation taking place. There has never been a better time to do what one does well&#8230;and stick to it, than now. It is no secret that some wine bars, hotel bars, and restaurants actually want only 1 or 2 of a winery&#8217;s many wines. Reason? They don&#8217;t want to have the same winery brand occurring more than once or twice on their wine list. They prefer to have multiple brands, and to the point, get from each winery what they are known for, and therefore, make the best. Their second and third tier wines are no longer welcome in these depressed times of &#8220;consumer is king&#8221;.</p>
<p>Your premise of &#8220;being a jack of all trades and master of none&#8221; is spot on. It is painfully obvious at both the micro and macro levels. Vintners and wineries would be well advised to follow your advice.</p>
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		<title>By: Cameron Close</title>
		<link>http://www.redwinebuzz.com/winesooth/2009/04/13/what-wineries-can-learn-from-the-us-auto-industry/#comment-1264</link>
		<dc:creator>Cameron Close</dc:creator>
		<pubDate>Tue, 14 Apr 2009 14:10:15 +0000</pubDate>
		<guid isPermaLink="false">http://www.redwinebuzz.com/winesooth/?p=2302#comment-1264</guid>
		<description>Wine production leans heavily towards being a fashion business without the capacity to change offerings with 6 months planning. Making more than one wine protects you from market anomalies such as Merlot producers saw with the movie "SIDEWAYS". Therre is no reason you can't produce more than one wine with passion and commitment - sixteen may be a few too many!</description>
		<content:encoded><![CDATA[<p>Wine production leans heavily towards being a fashion business without the capacity to change offerings with 6 months planning. Making more than one wine protects you from market anomalies such as Merlot producers saw with the movie &#8220;SIDEWAYS&#8221;. Therre is no reason you can&#8217;t produce more than one wine with passion and commitment - sixteen may be a few too many!</p>
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		<title>By: Arthur</title>
		<link>http://www.redwinebuzz.com/winesooth/2009/04/13/what-wineries-can-learn-from-the-us-auto-industry/#comment-1261</link>
		<dc:creator>Arthur</dc:creator>
		<pubDate>Mon, 13 Apr 2009 20:54:36 +0000</pubDate>
		<guid isPermaLink="false">http://www.redwinebuzz.com/winesooth/?p=2302#comment-1261</guid>
		<description>Thank you all for commenting, To John and East Coast's points: Bot of your points are valid, but I should clarify that I was not thinking of large producers like Bronco or Gallo  but rather singular producers whose specific holdings or sources are confined to one AVA.</description>
		<content:encoded><![CDATA[<p>Thank you all for commenting, To John and East Coast&#8217;s points: Bot of your points are valid, but I should clarify that I was not thinking of large producers like Bronco or Gallo  but rather singular producers whose specific holdings or sources are confined to one AVA.</p>
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		<title>By: East Coast</title>
		<link>http://www.redwinebuzz.com/winesooth/2009/04/13/what-wineries-can-learn-from-the-us-auto-industry/#comment-1260</link>
		<dc:creator>East Coast</dc:creator>
		<pubDate>Mon, 13 Apr 2009 20:15:40 +0000</pubDate>
		<guid isPermaLink="false">http://www.redwinebuzz.com/winesooth/?p=2302#comment-1260</guid>
		<description>I would argue that, to a certain extent, all wine regions try to be all things to all people.  Chablis, for example, makes Chablis Grand Cru, Chablis 1er Cru, Chablis, and Petit Chablis.  You could argue that they're only focusing on one variety, but that would miss the point, since they're forbidden from producing anything but Chardonnay.

The idea that wine regions should find their niche is following the luxury wine-producer model, which makes &#60;1% of all wine made.  The other 99% of wine come from regions and producers that make anything and everything.  That they're not focusing on \finding their terroir\ would be laughable to the executives that run the company.  Therer is profit to be had.  And, like the auto industry, there will be duds in the pursuit to offer each customer something to their liking.</description>
		<content:encoded><![CDATA[<p>I would argue that, to a certain extent, all wine regions try to be all things to all people.  Chablis, for example, makes Chablis Grand Cru, Chablis 1er Cru, Chablis, and Petit Chablis.  You could argue that they&#8217;re only focusing on one variety, but that would miss the point, since they&#8217;re forbidden from producing anything but Chardonnay.</p>
<p>The idea that wine regions should find their niche is following the luxury wine-producer model, which makes &lt;1% of all wine made.  The other 99% of wine come from regions and producers that make anything and everything.  That they&#8217;re not focusing on \finding their terroir\ would be laughable to the executives that run the company.  Therer is profit to be had.  And, like the auto industry, there will be duds in the pursuit to offer each customer something to their liking.</p>
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