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…
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