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Changes at the 2010 Paso Robles Wine Festival

We just finished the Paso Robles Wine Festival for 2010.  As usual, it was a whirlwind of activity, with a delicious dinner Friday night at the Cass House Inn in Cayucos, pourings with the Paso Robles Wine Country Alliance on Friday and Saturday evenings downtown in Paso Robles, and our annual salmon brunch and Rosé launch on Sunday morning out at the winery.

The weather was wonderful, cool and crisp, and the park was busy with enthusiastic tasters as attendance rose slightly compared to 2009.  The Paso Robles Wine Country Alliance has made a concerted effort to make the event classier and more comprehensive over the last five years.  Ticket prices have gone up moderately, weeding out some party-goers.  Additional events such as a VIP/trade hour, the Friday evening Reserve tasting, and educational seminars now allow attendees who are interested in closer contact with local winemakers this access.  The salmon brunch was delicious; Chef Jeff Scott continues to do an amazing job.  A couple of photos of the next generation of Haases (Eli, on left, and Sebastian on right) enjoying the event:

WineFest_2010_0002 WineFest_2010_0001

And one of me with Nikki Getty, who runs our wine club, hospitality and events:


This year, the PRWCA added a joint winemaker dinner and auction that raised over $100,000 for the Alliance's charity efforts.  Also new this year, they moved the Saturday Grand Tasting later in the day from 1pm-5pm to 3pm-7pm.  That was supposed to have two effects: to help get the event out of the heat of the day and to help open the day up for event attendees to visit the winery tasting rooms.  And we did get more traffic on Saturday: we saw 260 tasters this year, up from an average of 175 the past three years.  Even though sales per customer were down nearly 20% it was still a good day, better than recent Wine Festival Saturdays if not measurably better than a normal Saturday in the busy spring season. 

But Sunday was a different story.  Both traffic and sales were down dramatically, with traffic down 42% from an average of 268 people to this year's 156 and sales per customer no better than the averages we saw the past three years.  Perhaps most dramatically, we went from signing up an average of 13 new wine club members on Wine Festival Sunday to signing up just 2 this year.  Summing up the results between the two days, the improvement on Saturday did not make up for the decline on Sunday.  For the weekend our sales were down 15% and our wine club signups down 53% compared to the average of our results of the last three years.

I would typically suspect that a decline in our numbers like this were due to something lacking about the tasting room experience.  But I don't think that is the case here.  The tasting room has been on a great run recently, putting up some of its best numbers ever.  We have a terrific, experienced tasting room crew, and we staffed up so heavily for Wine Festival this year that we had tasting room attendants practically competing with each other to have the privilege of serving each new guest.  My second suspicion was that it was something we'd changed in our events for the weekend.  And we did add a charge to attend the salmon brunch in 2010 that we hadn't had in past years.  We did this because we found that the event, which was free to wine club members and free with a tasting fee to non-members, was attracting people who would leave without even entering the tasting room.  Our average sales to the people who came to the salmon tasting in 2009 was roughly half that of our other visitors that day.  Given that the salmon tasting itself was costing us roughly $20 a head, about the level of the average salmon-tasting-attendee purchase, that didn't make a lot of sense.  Plus, the crowds that entered the tasting room all at once after the event ended overwhelmed the tasting room's capabilities, meaning that neither the event's attendees nor the other customers got the experience we wanted.  This year, though the attendance at the salmon brunch was down significantly (from about 150 to about 50) the 50 attendees bought nearly as much wine as the 150 had done last year.

No, it was the rest of the day that was the culprit.  It was so slow in the afternoon that our tasting room manager sent half his staff home.  And we've heard that other wineries and tasting rooms were similarly disappointed in Sunday's sales and traffic. 

I have some speculations as to why the changes made to Wine Festival might have had the impact that they did.  First, moving the grand tasting later made it easier to taste for a partial day on Saturday (stopping in time to get to the event by 3pm) rather than a full day on Sunday.  Second, the later end to the event and the fact that many people had begun their day with wine tasting may have meant that people were wined out by the time that they had to make the decision of whether or not to go tasting on Sunday.  I can imagine, after wine tasting most of the day and finishing with a four-hour wine festival, that I'd choose to go to the beach or to Hearst Castle rather than heading back out to more wineries.  And finally, I'd think that this burnout would be most applicable to the attendees of the gala dinner and auction, who didn't finish their Saturday until after 10pm and who also shelled out $500 per couple to attend.  Between the cost and the fatigue, I would guess that it was these attendees who made the largest difference in our end results.

Our tasting room, like most retail establishments, lives by the 80/20 rule, where 20% of the customers provide 80% of the business.  The majority of our tasting room customers buy just a bottle or two, or even just pay the tasting fee.  But it's the minority who get really excited about what they find that keep our average sales (and our wine club signup numbers) strong.  So, if even a small percentage of the best buyers are eliminated, it can have a dramatic impact on total sales.  The 400 attendees of the wine dinner and auction represented about 10% of the total attendees of the wine festival.  But I'd think that they represented some of the best buyers, and that the lateness and the expense of the event likely discouraged many of them from heading out to tasting rooms the next day.  If I'm right, this could be the major factor in the decline in Sunday's sales and the dramatic falloff in wine club signups. 

The key, for me, is to remember that Wine Festival is not an end in itself.  It is the creation of the organization that the local wineries task with marketing and promoting the area and its wineries.  If the event is successful at the expense of the wineries' results, it is actually not achieving what it needs to achieve.

I'm curious to know, from any readers who attended Wine Festival this year, what you thought.  Did you enjoy the event?  Did the changes in the event change your behavior the rest of the weekend?  I'll be meeting with the marketing committee of the PRWCA next week, and it will be at the top of our agenda.