It was sunrise the day after Christmas when I captured the picture above from my son’s kitchen window.  How appropriate that the morning began with a fresh layer of snow.  There is something peaceful about seeing the snow drape the trees. For me, there is no better way to close out 2010. 

With 2011 just getting underway, I can’t think of a better time to clear the slate and have a fresh start.  This past year has been challenging for the wine industry but there are many positive signs that the economy is moving forward. 

I expect to see Napa Valley 2010 wine sales up at least 10% over 2009 but we have a long way to go before we are back to the highs of 2007.  Wineries will continue to focus on depleting older vintages as they try to get back to a normal release schedule.  With the short harvest in 2008 I expect that many wineries will be able to get back on track by 2012. 

Challenges still abound in the California market as wine sales continue to struggle to grow.  Like past recessions, California is usually the last to enter the slow down and the last to recover.  With the looming state budget deficit and double digit unemployment it may take 3 to 5 years for our economic engine to fire on all cylinders. 

Strategies should be focused on boosting your presence in local markets to help support your distributor.  The more you can do to help educate the restaurant staff about your wines, the better.  The market is crowded with a lot of great choices so getting your wine at the top of a server’s mind is going to take some effort.

Renewed focus on your direct to consumer sales will continue to be an important strategy.  As your customers regain confidence and increase their wine purchases, you want to make sure they remember you.  Keep your contact with them fresh all year long.  It’s time to be creative and to push your hospitality to the next level. 

For those folks visiting your winery for the first time what will be their impression?  We often forget that many people are visiting the Napa Valley for the first time.  Make sure your hospitality team is fresh and go out of their way to help serve your guests.  Even if a sale doesn’t happen on that first visit your team is planting impression seeds that have the potential to bear fruit down the road.

Until next time…let this month be your chance for a fresh start to a properous 2011.

I had the opportunity to tour a company that manufactures filtration systems for the wine industry. Their system removes impurities which can cause the destruction of the wine and make it worthless. I was fascinated by the complexity of the machinery and surprised at its portability. Their systems are a huge benefit to the wine industry and especially to small producers because it frees them from having to invest a significant amount of cash into limited-use equipment. Instead, a vintner can hire their company to process the wine onsite.

It is interesting to think that specifically designed filters along with sophisticated machinery and computer technology can work together to save wine. The concept is simple: remove the bad stuff and you will be left with something great.

Too often in business we invest time and money in equipment and technology while losing sight of the people required to make it all work. I often wonder how far we could go if we invested as much time and energy in people skills and strategic planning.

But let’s go back to that filtration system. Its sole purpose is to save our inventory from becoming worthless. What if we took that same approach with our employees? Rather than saying our employees just don’t get it, what if we turned on the filter and removed this “black hat” thinking? What if we helped them to see the big picture so they would have more of an interest in our mutual success? If we got rid of the negative views and the fear that prevents us from trying new ideas, how far could we go? It would be goodbye to business as usual.

It is time to teach all employees how a business really works. It is time to empower them to act. To make decisions that make everyone look better. They need to understand that there is more to running a successful winery than just their particular duties. Your team (and in fact every successful team) needs to see how what they do impacts other parts of the winery.

For your winery to move forward, especially in tougher economic times, you’re going to need your team to be focused on your vision and constantly thinking about how they can work to fulfill it. Filtering out your own negative attitudes that say “they can’t do it” and replacing it with “how can I teach them to help the winery succeed?” will be the first step in preserving your most important asset…your people.