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to the non-profit causes we supported. Having a heart is a bigger goal than just selling wine. [V&WM] You raised awareness of the Barefoot brand without purchasing advertising, instead relying on an aggressive point-of-sale program that included publicizing wine competition results. Do you think competitions continue to be important? [ MH ] Competitions provide third-party validation, which is especially important in the markets in which those awards are won. However, it is critical to get the news of such wins into the marketplace immediately. We won hundreds of medals, and took news of a gold medal to the streets the next day. We sold 600,000 cases of wine in 15 states and 28 countries in 2004-2005, and did it with fewer than 50 employees. We had just two divisions in the company: sales and sales support. Everything else was outsourced. If our employees were not in sales, they were supporting sales, and bonuses were paid for sales success. That allowed us to quickly respond to positive awards and reviews, and get the news into the hands of our distributors. [ V&WM ] With wineries and wine brands proliferating throughout the United States, what can producers do to stand out in the crowd? [MH] Wine brand-builders need to realize that wine has become a commodity. Cute labels and compelling catch phrases are trumped by such mundane issues as price per category, packaging, and varietal or blend. Everyone entering today���s wine industry should ask certain questions. For example, MICHAEL HOULIHAN���S RESUME + Birthplace: San Francisco + Education: Bachelor���s degree in political science from Cal State University at Long Beach. + Current Position: Co-author of ���The Barefoot Spirit��� (with Bonnie Harvey); partner in BarefootWineFounders.com; partner in Houlihan and Jones (with Martin Jones); brand-building consultant, speaker, business/brand blogger. + Previous Experience: Co-founder, president and CEO of Barefoot Cellars Winery; wine industry consultant, government administrator. + Personal: Houlihan���s life and business partner is Bonnie Harvey REGISTER NOW Wineries Unlimited what is the existing price-point for the variety, type or package size that you���re trying to sell? You should stay within that range, but offer more value. Or what types of varieties, appellations or blends are in short supply? You can address shortages with undiscovered wines that compare well to existing popular wines. [V&WM] What prompted you to sell to Gallo in 2005? [ MH ] When you get into the wine business or any other business, really, you have to decide why you are doing it. Is it to create a job for yourself that goes on forever? Is it to provide a legacy to give to your family? Or is it to build value in a brand? In our case, we wanted to build value in the Barefoot brand. Brand value can only be measured by what someone will pay for the brand. We knew at the outset that we wanted to eventually attract an acquirer. What we didn���t know and what we found out was how long that would take and how big our brand needed to be. We were looking for an acquirer who would maintain the integrity of the brand we built. Many brands have virtually disappeared from the market after they were acquired. We didn���t want that to happen with Barefoot for the sake of the customers and our own reputation as brand-builders. We found a responsible brand steward in E. & J. Gallo. [ V&WM ] What is the single most important thing new and potential vintners should know in order to create a successful business? [MH] Start small and learn from your mistakes. It���s a get-rich-slow scheme! March 12-14, 2013 Richmond, Virginia 132 V I N EYARD & WINERY MANAGEMENT In addition to being V&WM's columns editor, Linda Murphy is a contributor to JancisRobinson.com, Decanter magazine and WineReviewOnline.com, and co-author, with Jancis Robinson, of "American Wine," to be published in February 2013. wineriesunlimited.com 3 2 01 Comments? Please e-mail us at feedback@vwmmedia.com. Trade Show and Conference | Jan - Feb 2013 w w w. v w m m e d i a . c o m