XChateau Wine Podcast

Making wine is capital-intensive. Making traditional method sparkling wine is even more so. From less juice from the grapes to double fermentation to more expensive bottles and taxes, Weston Eidson of recently launched Westborn Wine describes the differences in sparkling production.  Detailed Show Notes: Weston’s background: >10 years winemaking in Napa (Silver Ghost), family are wine collectors, interned w/ Jason Moore at Modus Operandi (2012), and acquired extra Chardonnay from Steve MatthiassonWestborn was founded in 2018, taking “Grand Cru” or single vineyard level fruit for sparkling wine (e.g., Heintz, Ritchie, Durell vineyards)Partnered w/ Russell Bevan (mentor) and Nathan Reeves (made sparkling in Margaret River)The goal is to start with high-quality wines and layer on complexity with traditional method agingTook 4-5 years to find a stride & hone the winemaking processInitially thought it would be 3 years aging vs 6 for 1st release (2019 1st release; 2018 1st vintage just disgorged mid 2025)SKUs: vintage, Blanc de Blanc, Rose, Non-vintageLuxury priced - $100+Solera method perpetual reserve program, late disgorged release, lead to a lot of capital in inventory2018: 500 cases; 2025 ~1,000 cases; target ~2,000 casesSparkling production costs vs. still wineFruit costs the same (growers love it: less shrivel, gets fruit off earlier - less pest/disease pressure; spreads out the work)Press cuts important, ~25% less gallons/ton vs still wine, as they don’t take tailleNeed to make the wine twice: initial fermentation (vin clair), secondary fermentation (bottled with yeast and sugar)Custom crush costs are slightly more expensive due to double fermentationBottles are more costly and need to be bought earlier (~$0.15-20 for a standard bottle; ~$1 for sparkling)Taxes higher: $2.40/gallon for sparkling wine, $0.07/gallon for still wine <16% abvStorage and financing costs are higherFinancing is combined with other brands, which may make it hard to start a sparkling brand as a stand-alone entityLook at the business plan over 20 20-year time horizon, projecting cash flow positive in 2027 (9 years from founding)Trends underpinning Westborn strategy: following Michael Cruse w/ grower CA sparkling wine, premiumization, sparkling doing relatively well, sparkling being used beyond celebrationsTake inspiration from Bereche, De Souza (lees stirring in bottle to amp up umami), and SelossePeople looking for experiences have a tasting at The Art Collective Napa Valley Hosted on Acast. See acast.com/privacy for more information.

It’s a cycle that has been happening since the late 1800s. The need for agricultural labor in California is a cycle of bringing in labor and then deporting them when they become too visible. Elaine Chukan Brown, wine writer and author of recently published The Wines of California, describes the history, current situation with new regulations and deportation, and the tension put on vineyard workers’ wages in California and their impacts on the labor market and vineyard workers.  Detailed Show Notes: The Wines of California covers 3 sections: How we got here - the history and what context allowed things to happenWhere we go - the growing regions and key producersWhat we’re facing - marketing challenges, climate changeInterest in farmworkers started with Salud, a medical program for vineyard workers and their familiesHas mobile and physical clinicsSuccessful because it provides care for workers and their familiesCA is the largest farm region in the USExports 40% of ag productionBecame nationally relevant in the 1900s, which led to the need for farm laborSources of farm labor (in chronological order)Indigenous people (until smallpox outbreak and reservations)China - exchanged labor for citizenship, after 10-15 years, expelled Chinese with the Chinese Exclusion ActJapanIndiaBlack sharecroppers from the South (small group)Mango (Philippines)Mexico (post WWII) - led to the current H2A programWhen labor populations grow and get too big, they are expelled, which has been in ~20-year cyclesH2A Program - temporary work visa programCannot be extended or transferred to another employerEmployers must provide housing & transportationBiases towards big business to deal w/ complianceFDR (1930s/40s) - Labor Protections Act created worker protections, but excluded agricultureUnited Farmworkers (1975) - 1st farmworker protection legislationAssociation of Farmers - farm wonders banded together to have more leverage against workersEver-growing CA labor regulations create large compliance requirements that end up favoring big businessCurrent system sets up farm workers’ wages as the only lever for farm owners to maintain profit margins and be economically viable (w/w/o gov’t subsidies)New CA farmworker overtime pay law - 8 hours/day, 40 hours/week before overtimeDerived from an office worker’s perspectiveDoes not match the seasonal work of agricultureEmployers have small margins, can’t afford overtime ratesWorkers make less money and need to get 2nd or 3rd jobsIf workers get injured at 2nd job, workers’ comp does not cover wages of the main jobEmployers need to find more workers to do the same amount of work, and lose the experience and skills of the current workforceMany crops (e.g., strawberries, peaches) need manual labor and can’t be mechanizedICE raids & deportations: not a new thing, but what’s new is people with documentation (visas, amnesty recipients, citizens) are being detained and deportedCreating fear, workers not showing up to work (some regions report a 70% drop in workers)Workers not going to farms on main roads (too visible)Families choose 1 member to go ot work, the other stays home to take care of the kidsHistorically, when the safety of workers is an issue, workers don’t respond to higher payUS tariffs increase prices to consumers, decreasing sales; it may take decades for consumers to substitute for domestic wines Hosted on Acast. See acast.com/privacy for more information.

With a large domestic market for wine, US producers often don’t focus a lot on exports. Honore Comfort, VP of International Marketing for Wine Institute, lays out the benefits and challenges of exporting wines globally. She covers the top markets for US wine globally, the role Wine Institute plays in helping US exports, and the potential impacts of the current trade war.  Detailed Show Notes: Wine Institute overviewMembers are CA wineries (>1,000)Public policy organization focused on legislation (e.g., DTC shipping)Member dues are a sliding scale (based on prior year revenue & volume), baseline is a few hundred dollarsCA is the 4th largest wine region in the world after France, Italy, and SpainLargest market in the USThe US market is 75% domestic (80% from CA), 25% importsExport is 4% (by value), 95% is CATraditionally lower-priced wines, now a barbell (both low and high, but not mid-priced wines)Other countries have high taxes, duties, and tariffs on imported wines (int’l pricing often 2-3x US retail, 10x for India)Cost to produce is high in CA (heavily regulated - environmental & labor force protections; land costs high)Goal to showcase the diversity of CA wine globally, but only a sliver is available Key int’l markets - Canada (#1 until Feb 2025; ~30% of US exports - premiers took all wine off shelves as part of trade war); Europe #2 (Germany is hard w/ strong domestic, low priced market; Scandinavia big); UK #3 (punches above its weight as oldest wine market, lots of wine writers, critics, traders; one of the broadest selections of CA wine); China, Japan, Korea, MexicoWine Institute has active programs in >30 countries for CA winesBenefits of exporting wine: importers sell wine for you (no 3-tier system like the US), build brand visibility, position wines next to other great wines of the worldChallenges of exporting wine - takes investment, needs face-to-face storytellingSmall Napa producer (<5k cases) now exports 15% of sales working w/ Wine InstituteIWSR creates an index ranking all wine markets globally on attractiveness (2024 - US #1, Canada #2, Switzerland #3 - a small country, but strong wine culture and high value wines)EU subsidies are pervasive (e.g., bottling line, materials subsidies, marketing support (Italy $150M/year), buying excess bulk wine), but hard to get complete infoThe US has less support for alcohol (USDA has $8M/year for CA wine); wine is the highest value US export, but low in total valueTrade war impactsMarket uncertainty has many importers not wanting shipments on the waterCost of input materials (e.g., steel, oak barrels) upPrior administration not interested in addressing trade disparities, potential to open up other markets (e.g., India - 150% tariff on alcohol, #1 whiskey market, #5 beer market; Vietnam; Thailand)Attitudes towards the US impact business (e.g., Denmark dislikes threats on Greenland, reducing US purchases; China is not a factor; Vietnam and Korea are positive on US products)Hong Kong’s move to 0% taxes on wine led it to be a hub of CA wine in AsiaIn 2019, China's tariffs on US wine plummeted businessWine Institute promotes “0 for 0 tariffs” - keeping wine out of trade disputesMajor policy priorities: US dietary guidelines (on alcohol), getting wine back on the shelf in Canada, Ingredient & nutritional labeling, CA bottle bill on recycled glass, and environmental regulations“Share Wine” program - building understanding, community, and engaging with wine consumers, focusing on 25-45 year olds, centering on relationship w/ technology Hosted on Acast. See acast.com/privacy for more information.

As one of the major players in value wine, owning Charles Shaw (aka “Two Buck Chuck”), Bronco Wine Co.’s new CEO, Dom Engels, believes that the wine industry needs more innovation and focus on creating new entry points for younger consumers. From packaging to labels, Dom discusses how he’s navigating Bronco through the turbulence of a shrinking market for value wine from both the cost and innovation side.  Detailed Show Notes: Bronco - Top 15 winery, owner of Charles Shaw (aka “Two Buck Chuck”)Has its own CA distributionHouse of >200 brandsLarge winery in Modesto, bottling in Napa, a boutique winery in Santa RosaOwns ~40k acres, ~30k acres vineyards, but farming <10k todayOwns Bivio, a logistics companyCharles ShawNo created by Bronco, acquired by Fred Franzia (co-founder of Bronco)Was a successful, premium, luxury Napa brand, 1st vintage 1978Went bankrupt in the 90s, Bronco bought the trademark in 19991st product in 2022 - $1.99 for good quality wineLow pricing enabled by low margins and Fred Franzia’s “genius” in bulk wine tradingPartnership w/ Trader Joe’s through shared belief in creating accessibility and substantial cultural overlapBelieves the industry needs more good entry-level wines to get younger generations a start in wineThe ethnic makeup of younger people is not the same as that of older generations“Not your father’s Cadillac” - young tend to rebel against what their parents did11,400 wineries in the US create a diffuse set of interests, a lack of clear messaging (e.g., craftsmanship, agriculture) to separate wine from alcoholAccessibility could be driven by the right packages (including formats) and labels; good labels drive trial, good liquid drives repeat salesSignificant marketing spend is difficult due to low marginsIndustry covers the right price points (e.g., Charles Shaw $3.49 in CA), but needs other elements, not a lot of great innovation or marketing at low price points (some pockets of innovation, e.g., XXL focus on high ABV)Need more transparency - ingredients, nutrition, ownership, provenance - Bronco is adding more back stories to brandsEnhancing social interactions is important; e.g., Jack Daniels’ ad that getting together with other people is healthy tooNew Bronco company motto, “better times at every table,” similar to Pernod Ricard’s “conviviality”Believes dislocation of restaurant price vs retail is a core driver of wine industry decline, $14 IPA and $25 cocktails make people drink lessNavigating lower volumes requires being more efficient, sees opportunity in winemaking (most capacity utilization at wineries now <50%), distribution (reduce inventory), and retailLikely too many brands in the US and too much shelf space in retailMothballing a lot of vineyards due to oversupplyCan’t bring back in 1 year, but can in 2-3Cut buds down so vines don’t produce fruitStill requires some maintenance costsVineyards in less optimal areas are to be pulled first, and he does not believe there will be an overcorrectionCompeting in value vs internationalCan’t compete on laborNeed to compete on quality, provenance, and tasteEven tariffs won’t solve the cost gapEU subsidies help democratize wineTariff impactsSome input cost increases (e.g., China for glass)A good thing overall for the US industry, which will lead to more US wine being consumedLikely no structural change Hosted on Acast. See acast.com/privacy for more information.

In an oversupplied market with rising costs, being a winegrape grower is probably the hardest it has ever been. Natalie Collins, President of the California Association of Winegrape Growers, breaks down the cost of winegrape growing in CA, the challenges in the marketplace, and the policy dynamics in the US, CA, and EU that continue to exacerbate the challenges for CA’s winegrape growers. Detailed Show Notes: CA Winegrape Growers - based in Sacramento, lobbies at the state and federal levelCA has ~5,900 winegrape growers and 550k planted acresKey cost drivers of winegrape growing#1 labor, ~45-50% of budget (30-45% CA interior, 45-65% CA coast); doubled in the last 10 years, driven by:High min wage ($16.50; most pay $18-30/hr) → increases take entire pay curve up, not just bottom2016 labor law change reducing hours before overtime pay → reduced farmworker take-home pay (OR provides an overtime tax credit to employers)#2 regulatory compliance (water, air, worker health, safety), ~10% budgetCal State SLO study on lettuce growers - compliance costs ~$1,600/acre (1,366% increase since 2006, 637% since 2022)#3 land - CA has some of the highest land prices in the US #4 crop protection/fertility toolsFarming costs ~$4k/acre Central Valley, $6-8k/acre Paso Robles, $8-10k/acre Sonoma, ~$10-17k/acre NapaGrape pricing not rising w/ input costs - Central Valley ~$500-600/ton, Central Coast ~$1-2k/tonBulk wine from Chile is cheap, and the US can’t compete on priceThe annual CA Winegrape Crush Report shows pricing for all varieties by districtNo US federal support vs EUEU subsidizes at every level (growing, marketing, production)>e2B/year in direct and local support, enabling cheap wine productionCrisis distillation - buy surplus wine to convert to alcohol (e.g., hand sanitizer)Vineyard removal and vineyard planting subsidiesAggressive marketing support (France investing $5B to support wine exports to the US w/ new tariffs)US wines can have up to 25% foreign wine blended in and be labeled as US wine2023-2024 - CA left ~300k tons/year on the vines; 2025 ~50% of vineyards don’t have a contract for the 2025 harvest; industry calling for another 50k acres to be removed (60k removed since 2022); all regions pulling out or mothballing/minimally farming vinesTariff impacts (May 2025)- input costs increase, but can be positive for CA winegrape growers2019 tariffs saw domestic wine increase its share by 10% vs EU winesCanada is actively removing US wines from shelves in retaliation; the US exports 10% of its wines, 40% to CanadaDeportations - creating fear, people are afraid to leave their homes for fear of their families getting separatedSeasonal labor is not big, 90% vineyards are mechanically harvested; H2A temporary workers (mostly from Mexico, all-in cost ~$30/hr, often more productive, cannot be paid more than domestic workers)Economic impact of CA wine - 422k CA employees / 1.1M across US, $73B CA economic impact / $175B/year USAll agriculture is struggling in CA, replacement crops for grapes not easy (some almonds, pistachios, cherries); costs ~$30-70k/acre to plant a vineyardDuty Drawback - a federal tax refund program meant to encourage exportsIf a winery exports wines, then imports them back, it gets 99% of import fees (including the Federal Excise Tax of $1.07/gallon) refundedIf importing ~$3/gallon bulk wine, can save ~30%Mostly used by the top 5 wine companies2024 - 38M gallons bulk imported (70M in 2022) vs ~70M gallons left on the vine in 2023 Hosted on Acast. See acast.com/privacy for more information.

Having met at the UC Davis Wine Executive Program, Kia Behnia, CEO, and Mason Earles, CTO, founded Scout to replicate the best sensor in the vineyard, “the farmer’s eye.” Leveraging off-the-shelf hardware, Scout uses AI to process images taken from a tractor to automate vineyard mapping, vine counting, yield forecasting, virus identification, and more. From managing vineyard assets to implementing precision agriculture to improve quality, Scout is harnessing the power of AI to optimize vineyard management.Detailed Show Notes: Mason’s background - UC Davis Professor, Apple, AI & agricultureKia’s background for Scout - owns the Neotempo wine brand, worked at Splunk, the “data for everything” companyThe official company name is Agricultural Scout, dba Scout, the website is agscout.ai, so it can be called any of those namesFounded in 2022, initially more hardware-based, but pivoted to an intelligence company using off-the-shelf hardwareThe goal is to “replicate the farmer’s eye” with an AI-based solution using cameras, tractors, and Scout cloud and mobile app (which can be used offline); the brain is centered around a phoneUS only today (~50-100 clients, 300 blocks, 2M vines, processed 56M photos), going international in 20264 main use cases currently: Automate vine count, inventory, and mapping of vines - 4x faster than people could doEstimate crop performance - both vigor and fruitYield forecasting - can use every step in the growing season to forecast yield with historical performance and weather forecastsHealth performance and vine mapping - leveraging AI for virus detection3 types of clientsEstate wineriesVineyard management companies (“VMC”)Real estate investors or owners to track vineyardsBenefits include: $400-1,200 savings/acreProductivity gains through managing more acres with fewer people, identifying low-performing vines, and the program tells farmers where to sampleRemote monitoring of faraway vineyardsEarly season yield forecastingDisease management - virus can cause $170k/acre damage over 3-5 years, costs $40/PCR test, the goal is to keep virus <15% not to lose the whole block, has a 7,000 photo database on vine diseaseBench Vineyards discovered 1 acre of missing vines out of 24 acres and filled them inPricing is a subscription model, $150-180/acre per scanVolume discounts >50 acresNeighborhood and AVA discountsStarter - 2 scan package (for inventory and virus)Professional - 6 scan packageTypical customer starts w/ 2 and upgrades to 6Monarch promotion, customers get 1 free scanUp front hardware costs ~$3,000New product in beta in July 2025 - ChatGPT Scout for vineyardsMarketing mostly through word of mouth, industry trade shows, and webinars have been effective, as has partnership with Monarch (already tech enthusiasts)Barriers to purchase are often due to farming budgets built around labor Hosted on Acast. See acast.com/privacy for more information.

From 200 mph electric cars to 20 mph electric tractors, Praveen Penmetsa, CEO of Monarch Tractor, leveraged his passion and expertise in vehicles, robotics, and batteries to develop the first smart, electric tractor. Making farmers more profitable and efficient first, and then sustainable, are the core tenets that drive Monarch’s business. Praveen discusses the core benefits of using an electric tractor and how it works with farmers to take advantage of government incentives, making farming more efficient and cost-effective.  Detailed Show Notes: Praveen’s background: mechanical engineering, loves fast cars, worked on electric vehicles, robots, and battery systemsFounded Monarch in 2018, the company is currently the only company selling smart, electric tractorsNow on four continents, with most sales in the US, pilots internationallySolution is a smart electric tractor with an app and piloting autonomous drivingFits in 5’ rowsRuntime 10-14 hrs for pushing, 8-11 hrs for mowing, 4-6 hrs for heavy operations; takes ~6 hours to chargeCore markets - vineyards #1, dairy #2, orchards, horse ranchesCore benefitsSave $7-12/hr on diesel savingsRemote service and support, day and night - can submit a service ticket on the machine and get help remotelyProduct gets better over time with SW updates (e.g., released the ‘row follow’ feature)Can power other things, be used like a generator (e.g., night lights for harvest)Easier to train operators (smart screen vs 20 manual controls)Environmental impacts - reduces carbon emissionsWith increasing automation (mowing is 1st operation), more labor savingsAutonomous driving has guidelines by CA OSHA (need signs that the autonomous tractor is running and no people in the block), but there are no legal guidelines in other placesPricing$90k baseline price + options + subscriptionsGov’t incentives can make it cheaper than a diesel tractor, 20-70% savingsMonarch helps apply for subsidies, including charging infrastructure and solar installationSubscription charge for connectivity and SW has various levels; some charges can be offset by incentives with carbon offset reporting (e.g., Dannon gives dairy farmers incentive payments for the carbon offsets)ROI driven by tractor usage, payback ~2 years; has an ROI calculator on the website; needs to be cheaper and more efficient before sustainability elements come into playMost farmers want autonomy to reduce labor costsSells through a direct sales team and dealersMarketing driven by non-electric tractors today, podcasts are helpful, social media, and demos have been very effectiveSocial media, primarily Facebook and LinkedIn for owners, Google SEO, and local dealer supportDemos are essential; most farmers want to try before they buyPartnering with other companies to use their technology inside, also partnered with AgScout to leverage AI for vineyardsBarriers to purchase primarily worry about service and support, and wanting more autonomy for labor savingsContinuously update both HW and SW on machines, some tractors now close to 4,000 hours of operation (vs. standard tractors need to be replaced after 4-6k hours) Hosted on Acast. See acast.com/privacy for more information.

Drawing on her background in winemaking and Silicon Valley, Ashley Leonard, Founder and CEO of InnoVint, has developed a modern platform that tracks everything from the vineyard to the bottle. From getting granular with COGS to automating TTB compliance, InnoVint gets the winery out of spreadsheets and into a modern, cloud-based, mobile-centric system. This system is designed to accomplish InnoVint’s mission: Helping wineries run better businesses.Detailed Show Notes: InnoVint overview - mobile-driven winemaking platform, tracks and manages all winemaking options, and automates compliance>600 winery clients (~80% of wineries still using Excel)92% of clients in North America, 8% InternationalMission: helping wineries run better businessesTTB requires reporting for producers >500 cases4 productsGrow - vineyard tracking platform from the winemaker’s lens; phenology dates, yield estimates, applications, harvest scheduling, historical trendsMake - winemaking from fruit reception to bottling; work enablement platform with digital work ordersFinance - tracks all costs associated with making wine, final COGS; the finance team applies overheadsSupply (2025 launch) - case goods management, inventory tracking, integrates with DTC platforms & distributors, has allocations as a planning toolHas open APIs; integrates with TankNet and VinWizard for winery automation, receives data back for actions taken; integrates with quality control labs (e.g., ETS) and can take action more quicklyCore benefitsKey differentiator: profitability per SKU and true COGS/product (w/o InnoVint, calculated once per year)Efficiency, working smarter, better decision making, and more transparencyReporting to be able to manage qualitySome wineries use data to track carbon footprint (e.g., water use, weight of glass)Reduces the risk of an auditCompliance reporting (e.g., TTB 5120, export reports) - Gloria Ferrer went from 3 people over 2 days to 15 minutes for 1 personLarger wineries tend to have more tangible benefitsDomaine Chandon saved $75k annually by making the workflow paperlessPatz & Hall saving 40 hours/monthOnboarding5-step self-serve process (vineyard sources, lots, volume, vessels, current inventory) takes a couple of days for small wineriesPremium package for larger wineries includes team training, and full data migration takes 2-8 weeksPricing - SaaS modelScales based on size (production) and complexity (# of locations) of the wineryNot user or usage-basedImplementation ~$1-2kSubscription starts at $2,400/year for a boutique winery for MakeMarketing - “has tried it all”, tries to add value to the end userDoes a lot of speaking engagements/webinars on being a healthy wineryManages The Punchdown, a free digital community that is a peer-to-peer exchangeReferrals from clients are the most effective marketingLaunched the State of the Wine Business Health Report (2024) - surveyed with >500 participantsTo reach wineries that don’t go to conferences - LinkedIn/social, co-marketing, financial webinarsPaid advertising sometimes works, but it's not a top lead generatorBarrier to purchase - resistance to change, case studies help overcome (e.g., Domaine Carneros saw what Chandon was doing and bought the product)The product roadmap includes Supply module, AI applications, and embedded tools Hosted on Acast. See acast.com/privacy for more information.

Making wine in California, France, and even Serbia, consulting winemaker Julien Fayard has a broad view of the winemaking world. His constant monitoring, evaluation, and investment in winemaking technology benefit both his own and his clients’ wineries. Julien offers insight into winemaking technology on both sides of the Atlantic, as well as some of the specific technologies he utilizes. Detailed Show Notes: Julien’s background: French, came to the US in 2006 and worked for Phillipe Melka, started his consulting practice in 2013, built two wineries and manages three others; mostly Napa (~85%), but also makes wine from Sonoma, Sierra Foothills, Provence, Bordeaux, and SerbiaUses trial & error to evaluate new winemaking technologyUsually, a trigger that causes each tech adoptionHears about new tech from travel and conversations with other wineries and tech companiesFrench tech is mostly involved with wine contact (e.g., yeast, oak treatment), the US is mostly logistics, mechanization, automation of labor, and CA is slow to mechanize vineyard workMonitors the slowly evolving knowledge base in winemaking - most tech innovations are slight derivatives of existing knowledge (e.g., sulfur automation)To buy into a new tech: other people using it, company viability (and ability to scale), practicality of solution (e.g., barrel door for fermentation did not take into consideration time and the challenge to move between barrels)ROI calculation includes cost savings, risk assessments, and quantity or quality improvementsGenerally does not implement things that could move costs more than 10-20%The most significant variable cost driver is when volume drops (e.g., waste, accidents, filtering, bulking out wine) - each tank is ~$100k of wineFruition Sciences did a lot of sap flow analysis, but never got mass adoptionWell monitoring technology is happening, and may be required soonCommunications modules for sensors are getting much cheaper, enabling more techVinwizard (NZ) - wall winery automationStarted with pumpover automation (temp, speed)Can control to avoid peak energy hoursCan set times for tanks to make temp-sensitive additions easierAlarms for glycol system outagesArkenstone was 1st Napa winery to adopt, learned from them, a solution more complete than TankNetMin ~$50k costInnovint - winery SW management systemCreates all work orders, does costing, compliance, and traceabilityClients, CPAs, and compliance can see everythingA communication tool, very user-friendlySentia - hand wine analyzer (VA, malic, alcohol, SO2)$2k/machine<$1/use for stripsUses a solid chemical reaction“Fragile” tech, 1 in 30 results is way off, researching this with a PhdTried bungs with sensors, but requires a tech breakthrough to workOenofrance - a system for faster oak extractionPut oak blocks (closest to staves) under pressure to extract oak flavors faster$40k in oak to $4k (renting tech)Costs ~$80-90k to buy machineExcited about new destemmers, probes for monitoring wines (for “modern natural wine,” in-ground amphora aging) Hosted on Acast. See acast.com/privacy for more information.

Exactly five years ago, Robert and Peter published the first episode of XChateau! To help us reflect on how the wine market has changed in the last five years, XChateau’s most frequent guests, Amanda McCrossin and Charlie Fu, return to discuss the changes in wine influencing and social media, the wine market upheaval occurring now, wine marketing done right, and wine drinking trends. Detailed Show Notes: Changes to being an influencerAM: did not think TikTok would be big for wine in 2020, built it up in 2021, and created more “snackable content” (<90 sec videos), reaches wider audience (late 20s to boomers, more female) on TikTokInfluencers are changing, and many get burnt out (including Robert)Influencer growth today - e.g., Olivia Tiedemann (@oliviatied) went from 0→4M followers on IG in 2 years, raw, skilled, edgy style caught people’s attention, used collabs to keep growingSocial media evolutionThings are more video-heavy today vs. the static content of 5 years agoNot a lot of male creators (tend to be older, more “academic”), female creators are much better at wine educationYouTube skews more male, TikTok more femaleMales tend to consume more long-form content, while females tend to consume more short-form contentIG likes higher production quality, TikTok more “authentic” videos, IG upped video content length to 3 minsRednote (Little Red Book) - a popular Chinese app for local food & beverage recs, particularly in Asian dominated communitiesWine market upheavalPY: Anti-health messaging is hitting wine more than other alcohol, reversing the trend of the last 30 years, fueled by the “French Paradox” research on positive heart benefits of the Mediterranean dietPremiumization is somewhat continuing - the top 1% are maintaining the high-end market, while others are trading downAM: “Wine isn’t cool,” wine is not great at being in pop culture todayPY: Taylor Swift helping things like Sauv Blanc, but she’s not out talking about wine (AM)AM: Wine needs an Alix Earle (@alix_earle) w/ a glass of wine or maybe more medium-sized influencers (100-500k followers)CF: Health kick is a major trend impacting alcohol consumption, fewer people at restaurants ordering wine (at least in LA), people pushing NA optionsAM: people not interested in the <$10/bottle category (except things like Kirkland wines), want $30+ bottles but need to sell the wine as there is so much choiceAM: Wine needs to revamp its merchandising to reach more people (e.g., more by style than varietal)CF: High-end wines getting cheaper and more available; when top wine prices fall, alternatives also crashAM: No such thing as brand loyalty anymore, NDA wines big for Wine Access (private label w/o being about to say the source)Wine marketing done wellCF: Winemakers from Burgundy (e.g., Dujac) are out there a lot more, increasing the popularity of the entire regionPY: Doing more experiences both at the winery and on the roadAM: Clean wine movement (e.g., Avaline) has some negatives, but is positive in terms of giving more transparency (what many consumers want these days)RV: ingredient and nutritional labeling on the bottle is better than just available on the website; PY: NA wines have full nutritional panels, which could help promote wine’s good sidesWine drinking trendsAM: Sauv Blanc is America’s grape right now, theory: women think it’s a healthier option due to its lighter, crisp styleCF: people not drinking as broadly, but more hyper-focused due to so much available information (e.g., William Kelley and Burgundy); fewer people drinking natural wine Hosted on Acast. See acast.com/privacy for more information.

Spraying for powdery mildew can be ~25% of the cost of farming a vineyard and be one of the key elements of a grower’s carbon footprint. Sarah Placella, Founder and CEO of Root Applied Sciences, has taken her deep research in microbes and created a data-driven solution to monitor the air for mildew and spray only when needed. Root can cut ~5 sprays per season, and growers have an average 5x ROI using the system.  Detailed Show Notes: Root Applied Sciences (“Root”) - airborne pathogen monitoring for farmers, like an “early warning system”Founded in 2018, 1st work with/ growers in 2021Powdery mildew (“PM”) is a big problem for vineyards in CA (March - August)Currently only markets to vineyards, done work with/ strawberries, leafy greens, can do anything with/ DNA and small insectsNapa, Sonoma, Central Coast todayHW enabled SaaS model - Root owns and maintains devicesDevice in the field, just above the canopySend data (battery status, device status, temp, humidity) to the cloud over LTEM connectionSW to see the dataThe grower collects samples from devices 2x/week and sends them to the labGrowers can share data with/ each otherHas an automated prototype in processWill not need a grower to collect and send samplesFundraising “seed” round for an automated system~25% of operational costs are spent managing PM6-16 pesticide applications/seasonConventional growers have fewer applications, but spend more for each oneOrganic may be spraying every weekPM takes 7-10 days to enter plants. See 2 peaks of PM before growers can see it, once PM exists, it's hard to controlRoot can cut 20-80% of sprays (~5 sprays/season), lengthens spray intervals when low risk~$100/acre spray cost per application, ~$300/acre if need to spray by hand (e.g., steep slopes)2024 - saw PM on Mar 29 in Carneros, growers planned 1st spray 4/16, moved up 1st spray to 4/2; cut sprays and more clean fruitRoot data enables more biological sprays (have shorter efficacy windows, are more environmentally friendly, and data gives more confidence to try them)Other benefits of RootClean fruit - faster fermentation (5 days faster), higher quality, possible increase in yieldsEnvironmental (less sprays, tractor use) - less diesel use, lower soil compaction; for 1 grower, 1 spray is a 13% reduction in carbon footprintFarmworker health - fewer chemicals in the airPricing$3,000/season/monitoring station all-inAvg grower has 4 stations, 1 every ~30-50 acresPrecision growers or rolling hills, 1 station every ~10 acres~5x ROIBarriers to adoptionRisk aversionNo access to a carrier to send samplesGrape prices down (budgets)More adaptive sprays can make operational scheduling harder for vineyard management companiesOther PM solutions“Spray and pray” (~90% of growers) - calendar-based systemWeather-based tools don’t work well and may be impacted by climate changeSpore trapping tools (e.g., spinning rods, roto rods) have sticky material that reduces sample size and efficacy, UV light exposure degrades PMImage-based analysis (new) - lots of data to send, samples ~2L air/min vs 400L air/min Root, does not specify type of PM present (~40 types)Product roadmap - more power efficiency, integrating a solar panelHas done work with/ downy mildew, botrytis, vine mealybug, and can detect them, but does not add a lot of valueExcited about growth in microbial mildewcides (biologicals) Hosted on Acast. See acast.com/privacy for more information.

With over 1,000 kosher wines from across all major winegrowing regions, Royal Wine is the largest importer (and producer and distributor) of kosher wine in the world. Gabe Geller, Director of PR & Wine Education, discusses the market for kosher wine, how and where it is made, and how Orthodox Jews hear about them.Detailed Show Notes: Gabe’s background, at Royal Wine >9 years, wine industry for 16 years (retail, consulting, marketing)Royal Wine - world’s leading importer, producer, distributor of kosher wineIn US, carries >1,000 kosher wines from every major wine producing regionOwns Kedem, Herzog, and other brandsCan’t taste kosher wine, similar to other winesProduced only by Sabbath observant JewsNo non-kosher ingredients or processing agents (e.g. - fining agents)Has kosher certification on the bottleMevushal (“boiled”) - for some kosher wines, uses flash pasteurization which is also used by some non-kosher wineries; tend to taste more approachable initially, but ages longerIsrael #1 producer of kosher wine (~5M cases), USA (~350k cases; mostly Herzog), France (~350k cases across many wineries)Kosher wine marketObservant Jews drink kosher wine year-roundJews use wine in almost every religious ceremony, considered the “holy beverage”Passover 1st night dinner (Seder), every adult is required to drink 4 cups of wine (can by any kosher wine or grape juice), each cup symbolizes 1 way God saved Jews from slaveryJews who don’t do kosher normally will for Seder40% of kosher wine in the US is purchased for Passover (used to be 60%, declining as more quality kosher wines available, so more is being bought year-round)Top markets - Israel, US (NY/NJ #1, FL, CA - CA Jews drink less wine than East Coast Jews), FranceIn top kosher markets, large retailers (e.g. - Total Wine) will have a kosher selection, some kosher wine stores, and online retailers (e.g. - Wine.com) also carry kosherOf the 15.7M Jewish people (2023), only a small portion keep kosherSome kosher wines sold to the general market (e.g. - Bartenura Moscato #1 imported Moscato the past 15 years, most don’t know it’s kosher; Jeunesse semi-dry wines have a distinct consumer appeal)Israeli politics / Gaza war have lead to people buying more to support IsraelMarketing to the Orthodox communityIdentify sects with stricter mevushal rules (e.g. - 101F vs 105F) and promote specific brands that meet thosePrint advertising big (English, Yiddish), many do not use as much internet, none on Sabbath, take in news via printWhatsapp #1 social media for Orthodox Jews (or Telegram) Hosted on Acast. See acast.com/privacy for more information.

Though one of the oldest wine-growing regions in the world, Israel is still exploring its potential after Muslim rule after World War I. Victor Schoenfeld, Head Winemaker, and Walter Whyte, VP of Sales for Yarden Imports, explain how Golan Heights Winery has set the bar for the quality of Israeli wine and spreads its wines globally, both within the Jewish community and beyond.  Detailed Show Notes: Victor Schoenfeld - CA native, went to UC Davis, recruited to Golan Heights Winery in 1991Walter Whyte - managed officers’ clubs in the military and learned about wineGolan Heights Winery (“GH”) backgroundFounded 1983 to export wine of high quality26% exported today (production to increase 30%, primarily for export)NE Israel, Syrian border, 33rd parallel (like San Diego)Volcanic plateau, Mediterranean climate, high elevation (1,200-4,000 ft)19 varietals, known for traditional method sparkling, Yarden CabernetZelma Long, former consultantPrice points range from $15 (Mt Hermon) - Yarden Cab ($50) - $80+ - $1,000 (Cru Elite)Manage 40% of vineyards (to increase), rest on long-term contracts500 vineyard blocks, harvested & vinified separatelyHas two propagation vineyards and a nurseryIsraeli wine historyJournal of Science (2023) - identified two winegrape domestication events 11,000 years ago - Caucasus (Georgia) and Western Asia (Israel)Discovered ~30 ancient wine artifactsGolan Heights is the coolest climate region in IsraelMuslim rule 738 - WWI - old varieties died outIsraeli war impactsMinimal grape growing impacts (1 missile fell on vineyard), but emotionally challengingSupport in the US for Israeli wine, reduction in sales in Europe after Oct 7, 2023 eventsIsraeli wine marketGH demand > supply in IsraelPer capita consumption is low; a large segment does not drink due to religionThe food scene has exploded in the last 20 years, but many restaurants do not serve Israeli wineTop 5 markets - US, Canada, Europe, Far East (Japan)Top US markets - NY, NJ, CT, FL, TX, IL, CAHistorically, wines went to religious markets, expanding into secularinternationally marketed as high quality, not as kosher; Angelo Gaja distributes in ItalyDifferentiating GH“Oldest new world winery in existence”Marketing messages: World-class wine, kosher, then from IsraelHigh elevation, volcanic soils on 33rd parallel (Etna is 37th)MarketingGrass roots, get people to taste the wineActive in Jewish organizations, ads in Jewish publications, tasting events sponsored by Jewish groupsStrong presence in Kosher wine storesAll GH wines are kosher2 types - Mevushal (cooked/pasteurized) - required for some, esp Kosher restaurants (catering, weddings, bar mitzvahs); Non-mevushalMany wineries do bothEverything used in winemaking needs to be certified kosher (e.g., yeast)Can’t use things like isinglassGH's whole facility is kosher“Could double business if made mevushal,” but will not to maintain qualityFood and wine pairing is not typical. Traditional Middle Eastern cuisine, “mezze,” has a lot of different flavors at oncePassover dinner is coursed, and every adult must drink four glasses of wine (or grape juice)Yarden Cru Elite - $2,000 per pair265 pairs related, including NFT, sold directly from wineryCelebrate the 40th anniversary with collectorsCabernet Sauvignon, single vineyard, single block, two single barrelsLaunched at an Israeli restaurant in Singapore Hosted on Acast. See acast.com/privacy for more information.

Tracking vine trunk movements down to the 0.5-micron level, Phytech is leveraging technology to optimize vine irrigation. Cody Ashurst, Director of Vineyards, and Lex Palmer, Marketing Manager, discuss how their solution optimizes and automates irrigation today and how it can be extended to optimize fertilization, harvest dates, and much more. Detailed Show Notes: Phytech - a global SaaS company that optimizes agricultural irrigationTechnology includes dendrometers, irrigation pressure switches, soil moisture probes, and frost & weather stationsCrops include nuts (biggest), citrus, pears, getting into row cropsVineyard solution primarily West Coast / CA, pursuing Portugal, Spain, Italy, Chile, Mexico, TexasDendrometer - digital devices mounted onto vine or tree, measures expansion and contraction of plant trunks at the 0.5-micron level (70 microns = 1 human hair)Vineyard solution includes a dendrometer, soil probe, website, and mobile app with wireless comms and data loggers connected via cellular, satellite, or wifiThe solution can be adjusted based on the type of farming (e.g., quality or quantity), rootstocks, clones, soil typesTracks trunk size and soil moisture to signal irrigation needsOptional: pump/value control for irrigationCan schedule up to 2 weeks of irrigationCan monitor fertilizer inputs (cost of fertilizer up 600% last 5 years)Benefits:Don’t promise water savings, but see up to 60% less water useImprove quality by knowing when veraison happens and when vines stop growing or are stallingOptimize fertilizer, diesel, and electric pump costsReduce labor for irrigation if automatedThe system logs data, enabling knowledge transfer when people leaveCase study: High-end Napa vintner got WE94 points 1st vintage, then used Phytech in a heat wave year and got WE97 w/ tailored post-veraison irrigation; other growers had a 30% loss, the winery had a 3% lossCase study: one ranch was expecting a 50% loss, but down to 3% with irrigation changesPricing - depends on # of sites in a blockThere is a small upfront fee for installationMonthly SaaS fee (~$50-80/acre/year), includes maintenanceWeather station ~$700/year (vs ~$3,500 to buy)Case studies (videos on website)Ultra premium Napa winery NeotempoLarger Mendocino grower Bonterra Marketing most through word of mouth/referralsDigital media, video testimonials, trade shows & panelsVideo in digital media has been the most valuableConnecting 1:1 is very helpfulPhytech is more holistic than other solutionsThe most significant barrier to adoption is technophobiaThe subscription-based model eliminates “tech graveyard” growers haveProduct roadmapPredictive brix/pH model (growers input brix, system tracks weather, vine response) to predict harvest date by blockGDD (growing degree days) monitoring tracking temperature and humidity in the field at the block levelAI Advisor to look at past data and current practices and enable recommendationsOther exciting innovations - Autonomous spraying and tractors (Guss, Monarch), optical arrays for vine health (Scout), microalgae for soil health (MyLand) Hosted on Acast. See acast.com/privacy for more information.

After struggling with tracking vineyard data firsthand, Shawn DeMartino, CEO and Founder of Sentinel, decided to create a solution with his partner. Enabling vine by vine mapping and data collection that could stand the test of time enables vineyard managers to increase the lifespan of a vineyard, manage viruses, and effectively create a “medical record” for each individual vine.  Detailed Show Notes: Shawn’s background - winemaking, viticulture, now general managementSentinel was a Covid project that became real, software that collects individual vine information over time“Patient medical system of record for vines”The solution includes a mobile app, desktop platform, and high-accuracy GPS (receivers that clip onto phones)Maps all the vines in the fieldConfigurable data collection formsAvailable in 5 countries currentlyMapping the vineyardCreate a 3D model with lat/long and elevationBasics (variety, clone), images, comments, discrete statuses (e.g., life stage, virus status)The vineyard mgmt team populates data, can walk up the vines and recordWork with/ Sentinel to put in bulk metadata (e.g., block info, varietal)A client mapped 100 acres in 1 weekWork order functionE.g., irrigation can be recordedRoguing, planting, and grafted statuses can auto-update when the work order is completedCore benefitsExtend the life of the vineyardsVirus/disease management, see the program more clearly, identify asymptomatic vines in hot spots (case study: ~10% of vines asymptomatic) Optimize pick areas (through mapping flavor profiles)PricingMostly software, hardware costs smallAnnual subscription based on acres, not users (<1% of farming cost)Biggest growers ~$2k/yearROI example: client roguing 1% of vines/year w/ growing virus problem, Sentinel enabled them to get ahead of the problem in 1 yearMarketing mostly organic searchArticles and podcasts helpedLast 18 mo, mostly word of mouthReferral program: The referrer gets a bottle of KrugBarriers to adoptionWorries about time requirements; the goal is to collect data when already in the fieldWorries about less flexibility to manage vineyard; full customization of data enables more flexibilityNext on the product roadmap - continue to flesh out more work order functionalityOther tech Shawn is interested inWinery management platforms (e.g., Innovint)Soil moisture probes for irrigation Hosted on Acast. See acast.com/privacy for more information.

With the recent launch of a new $300 retail icon wine, Boulder, Kaiken continues to explore the potential for luxury wines from Argentina. Building on the last 15 years of Kaiken's other icon wine, Mai, Anita Correas, Commercial Director, and Gustavo Hormann, Director of Winemaking, discuss the global market for luxury Argentinian wines, how they approach launching them, and the brand-building impacts for the Kaiken brand.  Detailed Show Notes: Kaiken backgroundFounded in 2002 by Aurelio Montes (Chile)"Kaiken" is the name of a wild goose that crosses between Chile & ArgentinaExports to 60 countriesWinery in Vistalba, Mendoza (28ha), vineyards in Agrelo (60ha) & Los Chacayes, Uco Valley (150ha)60% on-premiseFrances Mallmann restaurant at the wineryRecently launched new luxury tier/icon wine - "Boulder"$300 retail price, 3,700 bottlesDeveloped over the last 10 yearsUnique 3ha block in Los Chacayes due to overflow of Arroyo Grande, full of big rocks/bouldersMalbec (64%), Cabernet Franc (28%), Petit Verdot (8%)Boulder launch planLaunched in Buenos Aires, Hong Kong, Korea, Brazil (São Paulo, Argentina's #2 export country), USBrazil's event had a more direct impact on salesMostly press/trade events that are smaller, in-personLikely less on-premise than Kaiken overall, more hand-selling to collectors and Michelin Star restaurantsVR w/ Google Glass to see the vineyard up close and go inside the soil has gotten positive feedback, but it is more expensive than a regular video (required 3 days of video shoots and a special camera)Mai - prior icon wine$100 retail price, 12,000 bottlesLaunched in 2009 from a 120-year-old vineyardMarketing more "maintenance" now2021 - redesigned packaging, got 98 pts and Top 100 from SucklingPrimarily sold in Argentina, then UK, US, Brazil, Japan70% of Argentinean wine is consumed domestically, delaying the need for exportsAverage export ~40% higher price than Chile (export-focused market, ½ the population, 2x wine production vs Argentina)More high-end wineries in Argentina vs ~5 in Chile>$100 market for Argentine wine - "not a huge market"Big domestic market - much of Mai, Boulder sold domesticallyConsumers looking at super high-end often do not look at the country of origin but more at the concept of the wineValue Prop for Argentine luxury wine - not influenced by oceans, high altitude, dessert wines, driven by the AndesReturn on Boulder is more than sales, but brand building for KaikenFocused on relationships with importersWant long-term relationships as they represent the brand globallyReach collectors through import partnersHas affiliated importer in ArgentinaMontes relationshipWas helpful on launch to piggyback on Montes brandNow Kaiken is more independent and only shares importers in a few countries (it used to have the same ones)Kaiken Ultra ($26) awarded Wine Spectator Top 100 (#30, highest Argentine wine)Wine drinkers can graduate from Ultra to Mai and othersKaiken's focus for each range of wines is to over-deliver for the price point vs linking the winesGood press in 2024 for Kaiken - #1 New World Winery from Sommelier Awards, Boulder rated best Argentinian red blend by Patricio Tapai (wine critic), Estate Malbec was Wine Spectator's best value wine Hosted on Acast. See acast.com/privacy for more information.

With many macro headwinds for the wine world, Gino Colangelo, founder of Colangelo PR, felt the negative and often poorly fact-checked press around alcohol and health posed an existential threat. Teaming with Karen McNeil of The Wine Bible and fellow PR leader Kimberly Charles, they founded Come Over October, a campaign to create a positive narrative around wine. With freely available media assets and over 120 partners, the movement, in its first stretch, has shown the power of focusing on the positive elements of wine.  Detailed Show Notes: Macro wine challenges include marijuana, Ozempic, and RTDs, but “no alcohol is healthy” messages from WHO and other gov’t organizations potentially pose an existential threat to the industryCome Over October (“COO”) foundingCampaign to advocate for wineCommission research - 60%+ 21-39-year-olds would change consumption if alcohol health guidelines changed, 60%+ participate in Dry January or Sober October (which equates to 17% of the year)Karen McNeil, writer of The Wine Bible, got backlash over post against Dry January and ideated Come Over OctoberKimberly Charles, owner of an SF wine PR firm, joined as co-founderStarted the company in spring 2024 (Come Together, a Community for Wine) as a mission-driven company to advocate for wineFundamental principlesHad to reach consumersNo negativity towards other alcoholic beveragesInvolve everyone in the wine worldThe goal for success: turning the narrative around wine positive (e.g., more articles on the social benefits of wine)Measured by impressions of negative vs. positive articles about wineIn a battle for hearts and minds vs just getting the facts rightAsked for two things from partnersModest check - $1-10k to pay for campaign, website, social media, media asset creationActivation - use campaign assets (free to all) to run a COO campaignExample activationsTotal Wine - in-store signage, direct marketing, social media postsConstellation Brands - bought in-store radio ads for 800 Kroger stores under the COO banner (promoting Kim Crawford, Meiomi, & The Prisoner with Karen McNeil doing voiceover) and reversed negative sales trends in storesJackson Family - free tasting, events, cash support for COOCampaign success metrics120 companies participated>1,000 retail stores engaged (e.g., Kroger, Total Wine, Gary’s)~$100k donated media (e.g., Wine Enthusiast, Vinepair, Wine Spectator)Next Campaign - Spring 2025Focus on the food messageDifferentiate wine as food vs alcoholContinue togetherness messageBring in chefs, restaurantsThen roll back into OctoberWould like to hire a Director to run the companyHealth debateLoneliness epidemic - 30% of males don’t have close friendsWine has a unique ability for positive wellness in bringing people togetherDoes the industry need a positive health message/research to turn things around truly? (e.g. - wine → better relationships / friendships → stress reduction → better health)60 Minutes show on The French Paradox (1991) changed the wine world and led to 30+ years of growthNot yet seeing health impacts of marijuana usage as it has only been legal recentlyContact info: info@comeoveroctober.com or gcolangelo@colangelopr.com Hosted on Acast. See acast.com/privacy for more information.

With a second year of volume declines, 2024 has been challenging for the wine industry. Digging deeper into what trends are shaping the wine industry’s malaise, Cathy and Chris Huyghe, founders of sales analytics software platform Enolytics, have uncovered important insights into the US DTC wine market, including the decline of women and the divide between the affluent and middle class in wine purchasing. Enolytics has also developed a free service for the industry called EnoInsights, which is worth checking out.  Detailed Show Notes: Enolytics launched b/c no one in wine knew what to do with their data Builds sales analytics software for the wine & spirits industry for both DTC and wholesale depletion dataCustomers primarily small (<$1M DTC revenue) & medium-sized, growing in larger wineriesUS, Canada, Australia - primarily US w/ 80% CaliforniaPartnership with WineDirectExchange anonymized data every quarter and analyze it to build reports for the industry~2k wineries in database, ~1k wineries analyzed after removing outliers2024 DTC trendsRevenue flat-ish, volumes down significantlyWomen purchasing less (-4%) - overall (-3%), men (-2%); reverses a recent trend of women buying more wine, not generationally different, impacting white (-5%) and rose (-10%) more than red (-2%)Affluent areas are doing better (flat revenue, lower volume), middle-class & poorer areas are down moreWineries increasing pricing (+5% through Q3 2024), AOV up due to pricingVA is doing reasonably well, CA - particularly Napa and Sonoma, hardest hit - they largely depend on tourism (70% of purchases from people outside CA), Central Coast CA is not down as much (70% of purchasers from CA)Hospitality/visitation declined 7% (# of purchasers) in 2024 (also declined in 2023)Impacts wine club sign-ups, with hospitality the main club sign-up engineWine club growth -3% (# of members) in last 12 months2020 +7%, 2021 +11%, 2023 -1% (20% attrition through Q3, 28% total; 19% sign-ups), 2024 -2% (19% attrition, 17% sign-ups)Club doing best of all major DTC channels - revenue flat, volume downLess expensive wineries getting hit more (less affluent customers)Customizations up - 20% of shipments, higher revenue per shipmentAvg club tenure fallingBest practices - better training of tasting room staff, use data to manage attrition (Enolytics has an algorithm to determine attrition risk; wineries that use it see 20% less attrition than average), use data to target customers to join the wine club (high spenders that are not in the club)Website sales have the most significant room for growth, -42% since 2022, still up from pre-pandemic2020 +250% in online salesTexting, “concierge” services, more targeted telemarketing (highest AOV channel, 6x tasting room; potential to leverage tasting room staff)Average winery emails the entire list, gets lots of unsubscribes, recommends hyper-segmentation, creates messages for 100-200 peopleEvents - same levels as 2022Opportunity to take tasting room on the roadRecommends targeted events with a specific goalGo to places where there’s an existing customer baseCross-channel marketing can be effective, e.g., using DTC data to sell out a restaurant eventWholesale data partner - VIP - includes “can buy” and “lost” accountsRegional wine marketing boards (VA, Paso Robles) engaging Enolytics to do studies on DTC data - currently doing baseline analysis and onboarding more wineries, sending quarterly reports Hosted on Acast. See acast.com/privacy for more information.

Having “taught a computer how to taste” and using that data to help winemakers improve their processes, Tastry has turned to leveraging AI and their consumer preferences and wine chemistry databases to help wineries sell wine.  Katerina Axelsson, CEO, and Charles Slocum, Chief Business Officer, discuss Tastry’s Sales Accelerator Ecosystem, which includes the Wine & Consumer Insights Report, which gives wineries, distributors, and retailers tools to help them sell more wine.  Tastry has provided an example report for listeners. Detailed Show Notes: Tastry overview - see Ep 157 for a deeper diveTagline - “taught a computer how to taste”It has two unique data sets - wine chemistry, US consumer taste preferencesHelps improve winemaking, predict and react to changing consumer preferencesWorks with wineries, retailers, and distributorsTastry commercialization history1st 2 years - establish trust with winemakersLast year - focus on helping sell winesSales Accelerator EcosystemTakes data from 3 areas (winery input metadata, wine chemistry, Tasty validated wine market data) to feed accelerator (AI system)Consists of Wine & Consumer Insights (“WCI”) report, Sales Accelerator platform app, & integrations into other platforms (e.g., e-RNDC)Has AI search and chat functionalitySalespeople use data to sell to on/off-premise accountsSometimes, consumer-facing in-retailer displaysWCI - 2-page report to help sell winesUsed to train salespeople, it can be a leave-behindP1 - for the category buyer; P2 - for servers, staff to educate themWCI Components: Top left - bottle shot, label zoom in (helps for retention); name of wine; varietal; appellation; price (what it is actually sold for in the market); wine category (AI curates category to be highest scoring on Tastry score)Category Score - 200 point scale, 100 is average for the categoryNot a critic score>100 is better than the average, <100 less than average in terms of expected performance in its category against the Tastry consumer preference database (e.g., Cupcake Pinot Gris got a 181 score)Percentile rank - e.g., 129 = performs 29% above avg10,000s wines in database out of ~160k wines in the USNever <15 wines in a categoryCreating a new WCI for more rare and unique winesLower priced wines, terroir matters less; higher prices matter moreTastry Notes - AI-generated tasting notes, breaks into average and more experienced drinkersSegmented Consumer Appeal - insights into buyers of wine; if there’s at least an 85% match (roughly equates to Vivino’s 3.9-4.0 score or 88-90 critic score), consumers tend to notice they like the wine and will buy it againFlavor profile (p1) - e.g., fruitiness, oakiness, sweetnessP2 - flavor profile (major flavors), retail talking points, food pairings - used as a training tool to help people sell wineLaunching a new page for marketing teams to update dataRetailer recommender - has shown +3-12% sales in 90 daysTastry Pricing - $1,580/year subscription, $370/wine analyzedHow Tastry can help in the current macro environmentCreating low / no alcohol winesMarketing tools (Sales Accelerator) - addressing younger audiences (e.g., pairings with kale salad and frozen pizza rolls) Hosted on Acast. See acast.com/privacy for more information.

With 600 acres, a polo field, a lake dock, and even a zebra and camel onsite, the Folded Hills Winery and Farmstead in Santa Barbara is able to create unique and memorable experiences. Kim Busch, Founder and Co-Owner, and Kylie Enholm, Director of Operations, discuss how they bring this vision to life through the platform of Rhone varietal wines. From hiring for the “hospitality gene” to having a full-time events manager, Folded Hills is creating memories they hope to get people to tell their friends and add to their wine club program. Detailed Show NotesFolded Hills founding - intended to grow and sell grapes, vineyard manager convinced the Busch’s to start a label, Folded Hills ties into family historyHeritage labels - e.g., Lilly Rose after Lilly Anheuser (grandmother)Photo labels (reserves) - mostly from photos the Busch’s took themselvesFolded Hills overview600 total acres for Homestead, Farmstead, private ranchSouthernmost winery in Central Coast, right off 101The urban tasting room in Montecito, Homestead (winery tasting room), and Farmstead at the wineryRhone varietals (Grenache, Syrah, Clairette Blanche, Marsanne, Grenache Blanc)~5k cases/year98% DTC, would like to increase wholesale to 10% for more exposureHas its own polo fieldVisitation~8-10k visitors/year total~2.5k in Montecito (more club members, a “Cheers” vibe), rest at HomesteadMainly from Santa Barbara, Ventura, San DiegoCreating memories through events differentiates Folded HillsSparkling rose launch party in Montecito - brought in a mini horse with a unicorn hornLaunch vinyl nights (Thurs, Sun) in MontecitoDoes 1 large event/month at estate Homestead - e.g., polo games, tailgate contestOktoberfest - beer & wineAnimal feeding (including zebra, camel)Prices events to primarily cover expenses (range from $15 - 195 winemaker dinners)The focus is on creating memories vs selling wine to create word-of-mouth buzzAndy’s dad said “making friends is our business.” - he created beer and baseball while owning the St Louis CardinalsHospitality differentiation through events and experiencesHas a full-time events managerEnabled by lots of land (600-acre ranch), private lake dock, ATV group tours in the vineyard, animals to feedHomestead appeals to families (w/ Farmstead - U-pick fields, animal feeding)Hires people w/ the “hospitality gene”Wine club benefitsWine is the biggest draw (“purity” of wines believes does not lead to “stuffy nose” or “headaches”)Word of mouth around Folded Hills taking care of club members (access to private lake, private ranch)~10% of club members are local (live w/in 1 hour), next largest group from St Louis (does ~2 events/year, launched brand in St Louis)Get 15% off organic produce at FarmsteadPlan to relaunch farmstays on a adjacent private ranchFarmstead - “heart of soul” of brandBest sellers - animal feed, ice cream, baked goods~30% of visitors go to both Homestead and Farmstead, increasing as tasting room visitors now given free bag of animal feedSanta Barbara wine region differentiation - diversity, 75 varieties grown; unique climate (transverse mountain range) Hosted on Acast. See acast.com/privacy for more information.