How does a winery get from the minor leagues to the major?
I was talking yesterday with a guy on the marketing side of the wine industry who’s trying to promote his winery (as all good marketers should always be doing). He used an analogy with Major League Baseball—that his winery has reached AAA status in the minors (the top category) and now is ready and willing to hit the Major League. But it hasn’t happened yet, and he was wondering how to get it done.
As he put it, “How did those guys at the AAA level get to the Majors? How did they take the step to get access to capital to develop their business?”
Well, that’s the Big Question, isn’t it.
I replied that there’s no one answer to the question, but at least two that I can see, based on my years of observation. One is that some people simply buy their way into the Majors. They start with a ton of money they made from another industry or inheritance (Gordon Getty at PlumpJack), buy a prime piece of real estate in a significant appellation, hire the talent (viticultural and enological) to make killer wine, and then hire the public relations pros to promote the heck out of their wines. That’s how everybody from Tom Jordan to Kenzo Tsujimoto did it.
Fortunately it’s not the only way. Then there are the guys who started with little or no money and did it the old-fashioned way: sweat equity. They simply made great wine while no one was looking. Nobody gave them anything; they asked for nothing. Quietly, they did their thing until the media—and then the sommeliers and other influencers—noticed. Justin Smith, at Saxum, and Ehren Jordan, at Failla, come to mind.
The marketing guy’s reference to getting “access to capital” made me think. His idea was that if a winery is performing at the peak of their game with limited resources—i.e. at the AAA level–they should be able to convince a moneybags to invest to push the winery into the Majors. I replied that it seems to me that investors will only invest in a winery if they think it will make money, but he reminded me that there’s plenty of capital invested in wineries by people who don’t expect to make a pile of profit. They don’t want to lose money, but they do want to at least break even, and have the chance to live the winery lifestyle. (I’d love to take visiting friends to visit “my” winery but I don’t think that’s going to happen unless I win the Powerball Lottery.)
That’s the same dream that all those young entrepreneurs down in Silicon Valley have: an angel investor comes along and believes in them enough to finance whatever they need to realize their vision. I don’t really know enough about this investment side of the wine business to know if rich people actually do look for opportunities to help struggling younger winemakers up their game. But I do know that old adage: How do you make a small fortune in wine? Start with a large one.
Finally, there’s this reality: Not all Major League Baseball players are equal. Some, like Cal Ripken, have long, fabulous careers. Some, like Buster Posey (yay!) are just starting out on what could be long, fabulous careers. And some burn out early and fade away, sometimes going back to the Minors. Just because a winery makes it to the Majors doesn’t mean they can stay there—especially through all the ups and downs of the economy.
I’ve always thought there’s an element of magic to getting and staying famous. Heidi Barrett once told me that when she and Screaming Eagle got super-famous it caught even her by surprise; she described it as a wildfire that just erupted and swept everything before it. If there was a formula for making it, everyone would follow it. There isn’t. Short of being able to buy your way in, the best way to make it to the Majors and stay there is to do whatever it takes to make the greatest wine possible.