Very tough business environment

I’ve been at this wine thing for over 20 years and have not seen a summer as tough as this one when it comes to business. The wine business is somewhat cyclical, just like most any other business, with ups and downs throughout the year. We technically have two seasons: October, November and December, as we affectionately call them in our business – OND – and what I consider our second season from March through June. The rest of the year is broken down into the January & February slow winter stretch and the “summer doldrums”, as I call them – July & August….the summer is usually the slowest time of year by far for the wine industry.

This year we’ve had an early slow down during the second half of June and it has held all the way through the month of July so far. The extended heat wave has not helped, since folks seem to gravitate to other, perhaps more refreshing beverages in this heat, like water, lemonade, iced tea, beer and even cocktails. I myself seem less inclined to imbibe with vino when it gets hot and humid….I pick beer – Ice cold refreshing beer – yet when it comes to dinner, I almost exclusively drink wine and most of the time its red (yes, even during the hot summer, although I am partial to a good Rose when it gets this hot too)…

The last two years have been a very difficult time for any small business owner no matter what industry they are in, but by now I thought things would be getting much better, when in all reality the economy seems to be stagnant to say the least – and we may in fact be in the midst of that double-dip many economists have been predicting. Our business changed on a dime in the fall of 2007 and I noticed almost immediately that the economy was changing and I needed to act fast to remodel our portfolio to better compete in these challenging times. It took a while, but eventually we were told that the great recession did indeed commence about the time I noticed things slowing down myself, back in November 2007. Since then we have cut costs and brought in new, value priced wines that have helped us keep our head above water and resume growth through late 2009 and into 2010 – Rad Grapes sales were up about 25% this year up until June, when it seems the sales started stalling again. I spend most of my time on the road visiting our customers all over NY State and I tend to get a very good snapshot of the economy, sales, people’s attitudes and vibes, along with straight talk from other small business owners and all I see, observe and hear tells me that we are in the soup for the long haul….I am not sure that we will see any significant improvement in the economy for the foreseeable future, as we all figure out a way to make things work with the new set of parameters we have to deal with and adapt to the new normal as best we can.

Those who are able to adapt and acclimate to the new normal in the economy will do well in the long run, but we are talking here about true Darwinism – survival of the fittest and the ability to adapt to an ever changing environment – being the strongest, biggest and most prepared is not the key to sustainable survivability, it is the ability to adapt and change quickly…..I remember the old saying about out running a bear, God forbid your are ever chased by one – you don’t have to be the fastest, just faster than the slowest guy – well, our economy has brought us to a new status quo…we many no longer need to hunt or be hunted in order to survive and prosper, but given the current environment and the economy, it takes a tremendous amount of tenacity, energy, talent, grit and adaptability to make it in today’s world….”He who juggles best and longest wins.”

I truly hope that we are done with the heat this summer, since I know it has not helped the wine business and I certainly am looking forward to a cool down, sooner rather than later, as we head into August and the fall. I am certainly looking forward to those crisp, clean, blue sky, early fall mornings that bring us the needed change as we go forward to the new school year. Between now and then we do have a little family time to look forward to down on LBI the second week of August and that is certainly going to be a well needed and deserved time out for the Radisic family after all the heat and the slow summer business. We will be recharging our batteries down on LBI starting next weekend and then getting back to work as we head into the second half of August and ideally cooler wine-drinking weather.  Cheers…

The Paige 23 Wines have arrived

Well, we finally have some of the Paige 23 Wines in stock. My wife and I have been enjoying the 2009 Syrah Rose, 2007 Delia Marie Syrah, 2006 Santa Barbara Cabernet Sauvignon and the 2007 Santa Barbara Pinot Noir all weekend, after I picked up some samples form the warehouse on Friday. I will be out owing and tasting the wines over the next few weeks.

Some delicious Paige 23 Santa Barbara Pinot Noir 2007

The triplets had their cousin Katarina over all day today and we were in and out of the pool trying to cool off given the super hot weather we have been having. We finished off a fun family day with some short ribs that I marinated earlier. I washed down those short ribs with a bottle of the Paige 23 Pinot Noir, which I just finished off while enjoying a cigar outside. Earlier this evening we had what feels like the first real cold front in months roll through and cool things off enough for me to be able to enjoy a delicious glass of wine and a cigar outside in the patio….that’s what life really seems to be about. Tomorrow is another work day and I am off to Nassau County, Brooklyn and a lat stop in Manhattan before heading back home.

Times a re tough, but we need to do the best to enjoy the simple things in life….and in my world that almost always includes a good bottle of wine. If nothing else, you always feel better after a good bottle of wine….

Grapes are peaking earlier than ever

The extended hot weather streak affects many things, including the way grapes grow locally, like out on Long Island. I ran into this great article from the Riverhead News Review that covers the early veraison out on Long Island this hot summer…

Posted: Thursday, July 22, 2010

Grapes are peaking earlier than ever

Hot, dry weather promotes early maturity; harvest plans bumped up

BY BETH YOUNG |STAFF WRITER

BETH YOUNG PHOTO
Libby Tarleton, an assistant viticulturist at Long Island Horticultural Research and Extension Center in Riverhead, puts netting over grape vines at the Sound Avenue farm Tuesday afternoon to protect the fruit from birds.

This time of year, the grapes hanging from vines from Calverton to Southold are usually small, hard and green, with only faint hints of their future as plump, sweet fruit.

But the hot, dry weather since June has led to an unusual phenomenon. VÃ raison, the point at which grapes plump up, fill with sugar and change color, has begun earlier than ever before.

Alice Wise, a viticulturist at Cornell Cooperative Extension’s research vineyard in Calverton, was the first grower here to report veraison, which started in her marquette grapes last Friday. By Tuesday afternoon, the marquette had almost completely turned and she was beginning to see veraison in pinot noir and pinot gris. She and her research assistants have been in the field all week placing nets over the grapes to avoid the inevitable rush of birds attracted to the ripening fruit.

‘We are about two weeks ahead of normal. This is the earliest in the history of the wine industry.’

viticulturist Alice Wise

“We are about two weeks ahead of normal. This is the earliest in the history of the wine industry,” she said Tuesday. “April through July have all been warmer than the long-term average. Rainfall has been well below normal. While we frequently have hot, dry conditions in summer, it is usually for not such an extended period of time.”

read on…

Would you like a job selling wine?

Rad Grapes is hiring! Would you like a job selling wine? Sounds interesting?I absolutely love what I do…

If you have any experience selling wine in Metro New York and are looking for a new opportunity, Rad Grapes is looking to hire two sales reps to help us further develop our Long Island and NYC business. Our incredible little portfolio of wines is doing well and I can only do so much with the team I currently have, so its time to add some more commissioned sales people to the team.  Here’s looking to the future…Cheers! (Drinking and thoroughly enjoying  some Camaraderie Cabernet Sauvignon 2005 tonight)…

Why is the economy taking forever to recover…

Corporate America’s Pile-O-Cash from the Big Picture…..hat tip to Invictus….fenomenal post with research to back it up….I keep on saying that the shit has hit the fan and our economy suffers from a massive miss-allocation of capital. If consumers and small businesses are supposed to be 70% of the economy and we bailed out the banks that are not really lending (except to people who really don’t need it); corporate America is sitting on piles of cash and not hiring; while unemployment is at record levels and small businesses that are supposed to provide 65% of jobs are having a hard time just meeting regular cash-flow needs. You tell me what’s wrong with the picture after reading the blog post I linked to….and Washington is surely complicit…both parties.

Why Rad Grapes?

Yeah, why Rad Grapes? What is so special and different about us compared to all those other wine companies?

Well….because we are really good at sourcing the best value priced, artisanal, hand-crafted and estate bottled wines directly from the world’s best wine growing regions, for New York’s finest restaurants and wine shops. We also don’t believe that really good, well made, small production and artisanal quality wines need to cost you an arm and a leg…hence we provide quality wines at great price points. Cheers…

Summertime home grown meal…

I have been spending a good amount of time on the road, popping corks and tasting wine with customers all over NY State, so I am not home for dinner as often as I’d like during the week, but tonight is an exception….

We are cooking our very first home grown corn and coming in early too… (we have 7 plants bearing some nice corn), home grown New Jersey fried green tomatos – Oh yeah! – some baby back ribs slow cooked (no I did not kill the pig) and a little cellared Dutton Estate Cherry Ridge Vineyard Syrah 2003….it is meals like this, home grown and home cooked that great memories are born. Cheers!….Oh yeah; it looks like we got a back door cold front and it finally cooled off! Cheers…

11 Red Values from Washington

I don’t often tout the awesome press and ratings that Rad Grapes wines receive, but I should. Below is and excerpt from a Wine Spectator article dated June 25th that highlights a number of great values from Washington State, including our very own Bergevin Lane Cabernet Sauvignon Columbia Valley 2007, which received 91 Points! Kudos to the Bergevin Lane team and thanks for making such great wines….and yes we do have some in stock!

New reviews of Cabernets, Syrahs, Merlots and more, all priced at $30 or less

Augustus Weed
Posted: June 25, 2010

Savvy shoppers know that a popular region or varietal on a label can often mean a higher price tag. While it’s no secret that Washington can produce high-quality grapes, the region continues to be a great source of wallet-friendly wines. The state’s most consistent performers—Syrah, Cabernet Sauvignon and Merlot—offer fresh, pure fruit flavors and sleek structures at prices that are often lower than those found elsewhere.

Syrah is still relatively new to Washington, but it has quickly positioned itself as one of the state’s best grapes. NXNW, produced by Oregon-based King Estate, shows how supple and refined the grape can be. Cuillin Hills, based in Woodinville, is a newcomer to the Washington wine scene. Winemaker Derek DesVoigne crafted an outstanding version from the near-perfect 2007 vintage.

Many Washington winemakers hang their hats on Cabernet Sauvignon, and the variety, by itself or in blends, accounts for some of the top wines coming out of the state. Winemaker Jean-François Pellet made an outstanding version at Amavi in the Walla Walla Valley (the 2005 Amavi Cabernet was a Wine Spectator Top 100 pick in 2008). For around the same amount, also try the Bergevin Lane Columbia Valley bottling produced by winemaker Steffan Jorgensen.

BERGEVIN LANE Cabernet Sauvignon Columbia Valley 2007 Score: 91 | $27

Has density and focus, playing its red berry, cherry tomato and spice flavors against mildly grippy tannins, finishing with an echo of sweet, spicy oak. Lingers enticingly. Best from 2012 through 2019. 850 cases made.

—H.S.

Working on some e-mail marketing

As am entrepreneur, small business owner and wine geek, I have quite a few jobs and responsibilities, from CEO, to VP of Sales, Purchasing Mananger, Payroll Manager, HR Chief, COO, CFO, to Chief Cork Dork and Goffer, down to Marketing Manager.  That last role has self admittedly been ignored to the company’s detriment. In the wine business there are a few things that I feel will never change, including the fact that we must go visit our customers in person and pull corks to taste wine. Wine is and will always be subjective and tasting is believing….like I always say, “your palate will never lie to you”….

That being said, even though I am on the road all day, almost every day, it is difficult to keep in touch with all of my customers, all of the time in order to communicate new wine releases, trends, new vintages and hot new ratings from the wine press on Rad Grapes wines. Even though I am a self described tech geek and subscribe to the advantages of using technology to be more organized, informed and efficient, I feel like we have been behind the curve in communicating successfully with our customers regarding new wines, hot press and trends, among other issues….that is ending now.

After much research and some testing I have decided that Rad Grapes will try iContact for our e-mail marketing and to communicate with our costumers. I am still testing, but plan on sending on sending our first newsletter by mid July. Rad Grapes has some incredible wines in our portfolio with stories that need to be told and shared.  I look forward to the challenge…

Happy Father’s Day

What’s happening? It’s Father’s Day….having my first cup of coffee and thinking about all that I have to be thankful for as  a Dad on Father’s Day…a beautiful and healthy family; and incredible house that is a true home and my own wine business…..Rad Grapes.  After a hard slog the last few years with the downturn in the economy, I have been learning how to run my own business the hard way. Business has picked up nicely so far in 2010 compared to 2009, but I still have some baggage from making mistakes over the last few years, so we are not in the clear yet.

What I have learned the hard way in running my own business is that cash-flow is king; planning and forecasting are must to run a successful business and sales fix everything. As a business owner, I have become more pragmatic and more fiscally conservative, while becoming even more aware of how important great relationships are and how crucial they are to the long term survival of my business….just like family. I have also learned from the recent spate of merger negotiations how much I enjoy my independence and owning my own business – even with all the bills and headaches.

I cannot escape thinking about Rad Grapes and having my mind micro analyze past mistakes and come up with solutions to cash-flow issues…it is only natural that I ponder and analyze the buisiness that is responsible for putting bread on the table, supporting the family and paying the bills…the again…it is Father’s Day – a day for Dad’s to relax and enjoy the fruits of their labors….as much as possible.

This morning there are some World Cup games on that I will be watching, followed by some pool time with the kids and later on I cannot wait for the U.S. Open to resume play from Pebble Beach…..I watched Tiger come back last night and play some unbelievable golf – he went from 25th, shot 31 on the back nine to finish the day 3rd at -1…so this afternoon and tonight I will be plopping my ass of the couch and watching the last round of the Open and all the excitement that Tiger brings back to the game – like the fact that he has never won tournamnet a by coming back (yet)…

Happy Father’s Day!

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