Jessica Mendoza
๐ค SpeakerAppearances Over Time
Podcast Appearances
John Baletto was feeling desperate.
In a cruel twist, Sonoma had just experienced a stretch of incredible weather, giving growers like him a glut of perfect grapes this harvest season.
In another year, this would have been great.
But major customers had stopped renewing contracts he'd relied on for decades.
Fewer people were drinking.
So instead of a banner year, John couldn't sell enough to other wineries.
He says he could lose more than $3 million in sales compared to last year.
And it's not like John can just hold onto the extra wine and store it away.
Many of Sonoma's varietals are made to be enjoyed young, not aged for a long time.
And storage is expensive.
This year, it hasn't made economic sense to spend money on processing his grapes, so John made a choice that goes against every instinct he has as a farmer, letting the fruit die on the vine.
But just this type of loss that you're talking about, over 3 million, what would that mean for your business?
Part of John's backup plan involves bulk wine.
That's the kind of wine you see in stores like Target, Trader Joe's, and Costco.
It would help John cut his losses, but bulk wine also sells more cheaply, which would mean thinner margins.
In the meantime, John and other growers are chasing revenue anywhere they can find it.
Some are selling discounted grapes on Facebook Marketplace.
Others are leaning into other crops like apples or even selling off parcels of their land.
John's strategy is to transform his vineyard into more of a destination, offering experiences beyond wine.
He's adding lawn games, bringing in musicians, and setting up tram tours, and hopefully bringing back younger legal-age drinkers.