Strength In Numbers For Winegrape Growers

 

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It was just a few years ago, after weathering several years of mediocre winegrape prices, that Duff Bevill had an epiphany of sorts. “I go into the supermarket and see all these wine bottles with kangaroos on the labels, and they’re beating our pants off,� says the Sonoma County, CA, winegrape grower. “But this was at $10 (a bottle), and we can’t afford to be growers and sell grapes that go into a $10 bottle; the cost of land and operations here is just too high.�

While he and his fellow Sonoma growers, who farm land that costs $70,000 to $120,000 per acre, couldn’t afford to battle the Australians on price, they had something the Aussies didn’t — Sonoma itself. In an increasingly global marketplace, having a location with cachet is like having an ace in the hole, and they decided to bet on that card. So, at a grower meeting in January 2005, Bevill, who was then president of the voluntary Sonoma County Winegrape Growers Association, pitched his idea of forming a marketing commission.

“I painted a picture of the global competition we were facing, and said that if we don’t do something now, we will regret it in five years, in 10 years,� he recalls. “We need to focus on marketing, on the brand called Sonoma County.�

No Slam Dunk
He knew persuading growers to buy in wouldn’t be easy. Not too many years before, back in 1990, a movement to form a grower commission was defeated. Bevill wasn’t involved in that effort, but he was keenly aware that times had changed. “It wasn’t painful enough in 1990 — we weren’t doing bad enough — but then in 2001 the market went bad,� he says. “This time it was painful enough.�

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Still, it would be an uphill battle. Many growers are pretty independent by nature, and aren’t necessarily inclined to join together. For instance, at its peak the growers’ association had 600 members, and there are 1,800 growers in the county that produce 25 tons of winegrapes or more. (Bevill knows that figure well because that is the threshold for a mandatory assessment. Any grower producing 25 tons or more must contribute 0.5% of his gross revenue to the commission.)

He decided that it would take a campaign to win the day, and a grassroots campaign at that. So he and his fellow organizers started with baby steps, and slowly and carefully built support. “We talked to small groups of just five or six guys, then 30, then 150,� he says. “It took us well over a year to pitch it.�

Selling Skeptics

All along, Bevill says he was careful to include those growers who he knew would be most against the forming of a commission. “I purposely asked the skeptics to come to the meetings — because they were skeptics,� he says. “Once you sell your opponents on it, the rest falls into place.�

But growers are independent thinkers, and Bevill knew he needed more than just a good sales pitch. He and his fellow organizers needed facts. So they hired a San Francisco firm to do a national telephone survey to determine the value of the Sonoma name. “They found that when it came to reliable high quality, Napa had a very high number,� he says, “but Sonoma was right behind it.�

The survey also helped to deflect opposition from another camp. Within Sonoma County there are 13 appellations, and some of them are quite well-known. Many of the growers, as well as the marketing people at the wineries, wanted to sell their appellations, not Sonoma County. Bevill understands the sentiment. “If you’re not promoting Russian River Pinot, you’re crazy; that’s like a loose slot machine,� he says. “But you don’t replace the Sonoma name; you add the appellation to it.�

The telephone survey bore out that idea. On a nationwide basis, the appellations weren’t as well-known as many growers in the area thought. For example, while 90% of those responding had a positive feeling about Napa, and another 86% had a positive feeling about Sonoma, a well-known appellation like the Alexander Valley came in at just 20%. “Look at how much more value Sonoma County has nationally,� says Bevill. “We’re too close to it. I like to call my sister-in-law in Cleveland, OH, because she’s more representative of the American consumer.�

Landslide Victory

To further persuade growers of the value of a marketing commission, they brought in outside experts. Rodney Schatz, who was then chairman of the Lodi-Woodbridge Winegrape Commission, told of the success growers in that area were able to achieve in higher grape prices. They also brought in Rodger Wasson, the CEO of the Almond Board of California, which has had great success in grower prices even in the face of ever-increasing crop sizes.

Lessons Learned

Duff Bevill has a few suggestions for any group of growers thinking about setting up a commission to gain market strength.

1. It’s human nature to want to talk with those with whom you agree, i.e. preaching to the choir. Resist the temptation and face the skeptics. “Once you sell your opponents on it, the rest falls into place.�

2. It’s easy to get too close to an issue. The Sonoma growers had trouble being objective about Sonoma. Also, keep that end consumer in mind. “I like to call my sister-in-law in Cleveland, because she’s more representative of the American consumer.�

3. Consider other organizations to potentially partner with that might have similar interests. In this instance, both the winegrape commission and the tourist commission were interested in selling Sonoma. “Tourism became a natural pairing.�

4. There’s no better time to act than today. “We wouldn’t do anything differently,� Bevill concludes, “except we’d have done it sooner.�

Finally, Bevill said he thought it was important to personalize the issue. “I stood up and said, ‘I personally am going to pay thousands (in assessments) — five to 10 thousand,’� he recalls. “I think that was a key, putting my money on the line.�

The vote was held in June 2006. For the commission to pass, a five-year commitment, state law mandated that it be approved by either 50% of the growers representing 60% of the acreage, or 60% of the growers representing 50% of the acreage. The final tally wasn’t even close. Nearly two-thirds of the growers, 65%, voted in favor of it. But even more gratifying for Bevill, they represented 91% of the acreage. “It was overwhelming,� he says.

Today the Sonoma County Winegrape Commission is housed in a gleaming new suite of offices in a building it shares with the Sonoma County Vintners Association — a natural pairing — and the Sonoma County Tourism Bureau. But the latter too is a natural pairing, says Bevill. “We might have more of a connection with tourism than we realize,� he says. “We’re selling not only wine, but a place.�

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