Issue link: http://read.dmtmag.com/i/764739
w w w. v w m m e d i a . c o m J a n - F e b 2 017 | V I N E YA R D & W I N E RY M A N A G E M E N T 6 1 From the Hahn tasting room deck, the view of the Pinnacles to the east is mesmerizing, and the family has created several seating areas in the vineyards from which to enjoy the vast, tranquil beauty that makes this region such a com- pelling place to farm. Some in the wine industry might r e m e m b e r H a h n 's " e x p a n s i o n brands" from an earlier era. With the growing popularity of the High- lands, competition from large wine companies and the plentiful avail- ability of fruit, Hahn expanded its market reach in the 1990s and early 2000s with brands like Cycles Gladi- ator and Rex Goliath. The latter was extremely recognizable for the very large and feisty-looking rooster that graced its label. (Hahn means roost- er in German, a nod to Nicky's Swiss heritage and his native language.) REFINING PRODUCTION Fast-forward a dozen years, and Hahn now is enjoying a solid repu- tation as a premium producer of Santa Lucia Highlands Pinot Noir. Under Tony Baldini's leadership (he joined Hahn as general manager in 2011 and became president in 2013), it's undergone a huge trans- formation from a multi-brand, mega production winery to a much more focused one, with emphasis on Authenticity became more impor- tant than ever. Hahn saw an oppor- tunity to focus on its core strengths and shift toward a luxury brand — but you have to keep sales going while you take steps toward a stra- tegic repositioning." He credits the Benson Group with being an important partner during the transition. Fortunately, he says, "Our wines have always been of fantastic quality. We're a relatively small company and we thrive on relationships. We were very clear with our distributors that if we discontinued brands, we might be perceived as smaller. But instead, we heard them tell us that they like us being more focused. They appreciate the clarity." THE BRANDS Baldini describes the company's five brands as a pyramid. At the top is Lucienne, followed by Hahn SLH quality and higher-end products. It's shed the monster Cycles Gladia- tor and Rex Goliath business units, paring down its focus and concen- trating on its core strengths: Santa Lucia Highlands Chardonnay and Pinot Noir. Says Baldini, who was previously with Constellation Wines, including Franciscan Estate and Mount Veed- er Winery in Napa Valley, "Between 2012 and 2014, we went from 60 wines to around 30. We sold off brands that didn't support the mes- sage and weren't tied to family." Baldini also worked on improving communication among the com- pany's diverse business units and moved his family to Salinas to bet- ter understand how things work in Monterey. "It's so different from Napa and Sonoma," he notes. "The vendors, the farming, the people." There were six different profit cen- ters, with fruit sourced and wine made from six different areas. "We had duplicity in our brand set in both price and AVA. It was just too confusing. We had to understand what was really core." At the same time, the company carefully capitalized on trends in wine consumption. "The market is changing and evolving," says Baldini. "Beginning in 2011, it clearly started trading up: People are spending more money on wine. Hahn's property overlooks the Salinas Valley and offers seating areas in the vineyards where visitors can enjoy the view. wine@hoyt-shepston.com