Noir outlook? Not so bleak, say Ore. winemakers
PORTLAND, Ore. (AP) — Despite the recession, Oregon wine companies with established brands and strong distribution channels say they're doing well.
Even in a bad economy, for example, high-end pinot noir producers believe they can capitalize on the cachet of Oregon's signature wine.
Archery Summit Winery in Dayton — dubbed the "Rolls Royce of Oregon pinot noir" by Wine Spectator magazine — is holding prices firm and seeking to build its brand recognition by getting involved in charitable causes and helping sponsor events.
"There are just no words for having that perfect glass of pinot noir on a stressful recession day," Chris Nagy, the winery's guest-relations manager, told The Oregonian newspaper. "It's expensive, yes, but a small luxury that folks like to afford themselves."
But most of the state's 400 winemakers are tweaking their business plans.
Carlton winemaker Ken Wright, for instance, has long reigned as one of the $1 billion industry's stars. His wines are expensive, but he is one of the state's few winemakers capable of selling all of a coming year's production as "futures" before it ever hits the bottle.
Usually, he accomplishes that without breaking much of a sweat. But this year, he's hitting the road, to Seattle, for instance, where for the first time in years he's traveling to see distributors and account representatives.
"It's time to put some shoe leather on the sidewalk," Wright said.
He's also initiated a weekly cash-flow analysis to keep closer track of his winery's liquidity. "Our direct sales are remaining remarkably strong, and we're going to do everything we can to keep that going."
But industry experts say newcomers catering exclusively in high-end pinot noir, particularly those fueled more by zeal than cash, may find themselves vulnerable.
"These are very nice people, and I've met a lot of them," said Barbara Insel, CEO of Stonebridge Research Group in Napa. "But it never occurred to them how much it costs to sell the stuff. If you aren't full of cash, you're in trouble."