Home Archives March 2009 Q&A with Willamette Valley Vineyards' president

Q&A with Willamette Valley Vineyards' president

| Print |  Email
Sunday, March 01, 2009

BEARING FRUIT

JimBernau.jpg PHOTO BY MICHAEL HALLE

WHEN JIM BERNAU founded Willamette Valley Vineyards in 1983, his 15-acre, one-man operation was one of about 115 vineyards dotting Oregon’s landscape. As Oregon’s wine industry has grown in size and reputation, so has Willamette Valley Vineyards, which is now one of the leading producers of pinot noir in the state. As the president of Oregon’s only publicly traded winery — with $16.7 million in annual revenues — Bernau oversees 121 employees and the production of more than 120,000 cases of wine annually. We caught the winemaker on a rare day away from the winery to discuss the challenges facing Oregon’s wine industry.

Q How are Oregon wineries, including your own, faring in the recession?
A Sales growth has flattened, and in some cases we are seeing downturns, especially with our restaurant accounts. I hear from my colleagues that they are seeing the effect of the economic slowdown, especially those that are making and selling fairly expensive products. Our wines are fairly expensive because our yields are so low and the costs of how we make our wines are high. Oregon pinot noir, to be really good, takes a lot of money to make. People are being very careful of how they spend their money, which they should be.

Q What’s the industry doing to survive the recession?
A What happens sometimes in downturns is you see consumer behavior fundamentally change. People start making lower-cost choices and stick with those choices. I think what you’re going to see are some people trading down from expensive wines to less expensive wines. You won’t see much price cutting, because the cost is already in the product. You’ll see some real slowdown in spending by wineries — cost saving, cost cutting. But then you’ll also see something else. For those capable of doing it, you’ll see investing. Often the best times to develop a stronger market position [are during] economic downturns.

Q Lobbyist, cellar rat, CEO — you’ve worked nearly every position in the industry. Have a favorite?
A Growing. I love being in the vineyard, absolutely love it. As a consequence, we have quite a few vineyards.

Q You recently acquired more than 200 acres.
A Yes. We’re going to be busy. What’s important when you want to make a high-quality pinot noir, you have to have absolutely the best growing site for it, and reduce the yield on the crop in such a way to produce a high-quality, world-class wine. The best way to ensure that is to do it yourself. There is an advantage of making sure you control every aspect of the growing process, but also there is no margin. So by growing more yourself, you have more ability to get pinot noir to the public at a price that is fairly reasonable. Part of Willamette Valley’s great strategic advantage is that our size as a grower allows us to do that.

Q Would reducing personal wine consumption to save a few dollars ever be an option?
A Have you seen the size of my cellar? There is no way I could cut back.

 

NICOLE STORMBERG

 


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

How to handle the unexpected

Contributed Blogs
Friday, March 28, 2014
03.28.14 thumb disasterBY TOM COX | OB BLOGGER

The next mysterious (or disastrous) event could be one that you or your team might suddenly need to respond to, probably under intense scrutiny.


Read more...

Buy the book

News
Tuesday, March 25, 2014
2 03.25.14 thumb bookshopBY VIVIAN MCINERNY | OB BLOGGER

Oregon is home not only to many fine writers but also several accomplished small publishers.


Read more...

Speeding up science

News
Tuesday, February 25, 2014
02.25.14 Thumbnail MedwasteBY JOE ROJAS-BURKE | OB BLOGGER

The medical research enterprise wastes tens of billions of dollars a year on irrelevant studies. It’s time to fix it.


Read more...

Banishing oil burners reaps benefits for schools

News
Tuesday, April 01, 2014
04.02.14 thumb co2schoolsBY APRIL STREETER | OB CONTRIBUTOR

Three years ago, PPS set out to begin to convert the 1930s-era boilers from diesel/bunker fuel to cleaner-burning natural gas. Oregon’s largest school district has realized impressive carbon dioxide emissions reductions, setting an example for public and private institutions.


Read more...

How to boost web traffic

News
Thursday, April 10, 2014
BY JESSICA RIDGWAY  | OB WEB EDITOR

04.10.14 thumb seo-trafficSEMpdx hosted a workshop this week for entrepreneurs, website developers and others interested in search engine optimization (SEO).  Here are a few tips and tricks aimed at bumping up your search engine rankings.


Read more...

Small business sales go big

March 2014
Tuesday, February 25, 2014

BY BRANDON SAWYER

Sales of small businesses surged in 2013 according to the biggest Internet marketplace of such transactions, BizBuySell, increasing to 7,056 reported sales, a 24% increase over 2012, when they dropped 7%. Portland Metro sales tracked by the site grew 9% to 73, capping three years of solid growth. On top of that, Portland’s median sale price jumped 67% to $250K, versus just 13% to $180K nationally. Portland was one of just six metros tracked where the median sale price matched the median asking price, with sellers getting, on average, 92% of what they asked.

BTNMarch14 tableBTNMarch14 line


BTNMarch14 piePDXBTNMarch14 pieUSA


Read more...

Leader's bookshelf

Contributed Blogs
Friday, March 14, 2014
02.06.14 BooksBY TOM COX | OB BLOGGER

Five books that will make you a better leader.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS