I haven’t engaged extensively in vineyard consulting, but I have had some experience. During one of my visits to a winery in Portugal, I collaborated with the team to evaluate their operations and provide strategic recommendations. The winery had recently changed ownership.
An outsider’s perspective can be beneficial for wineries, especially when it comes from someone familiar with the international market. However, I approach such feedback cautiously since I don’t have personal stakes in the operation.
In this particular winery, I observed they produced a well-known wine from an international grape variety that thrived in the domestic market. However, the grape was not native to the region and the climate was not ideal for it. The style of wine produced was traditional and lacked potential for exportability.
From my perspective, I felt that this was not an ideal foundation for future success. The winery needed a complete overhaul; adjustments to branding and a better alignment of grape varieties with local terroir were necessary for long-term viability.
In the short term, the winery may have seemed successful. However, I’ve learned that modest success can often hinder true progress. When a business is merely breaking even, it becomes challenging to advocate for change. Conversely, when a company faces financial decline, the drive for transformation becomes more apparent.
Survival, while sometimes a valid goal, shouldn’t be the only aspiration. Many businesses endure periods of stagnation when they could be thriving. Recognizing that the present circumstances are not sustainable requires a rare foresight. Often, businesses celebrate small victories too soon.
Moreover, financial records often reflect past performance rather than current realities. A company’s financial health today can hinge on decisions made three to five years earlier, creating a time lag that clouds future outlooks. If companies fail to recognize this, it can be too late to adjust when negative outcomes finally surface.
Additionally, missed opportunities should factor into business calculations. For instance, if a vineyard plot is valued at €3 million, the potential returns from investing that capital must also be considered in assessing financial sustainability.
I believe numerous wineries out there are currently maintaining a break-even status, yet are likely to encounter debt in the future. This temporary success may prevent owners from contemplating strategic changes now, which could secure genuine success later on. If they delay this reassessment, they could lack the resources necessary to implement the pivotal transformations in the future.