The Press Democrat CLASSIFIED _j BUSINESS February 15,1987 State wine industry's key election

I Market order analysis, Page E7.

ByDANBERGEB Staff Writer larly next month wineries and grape growers will I vote on whether to establish a Winegrowers of California Commission to promote California wine. This commission, jointly operated by wineries and growers, would continue the work of the similarly structured Winegrowers of California Marketing Order established in mid-1984. That marketing order has been funded by assessments on members, with a limit of a 1 percent tax of the value of grapes purchased by wineries and sold by growers. The joint commission would perform most of the tasks MARY CARROLL now being performed by the Winegrowers, including the MARY CARROLL William Maclver opposes wine market order work done by its market development program, which Andy Beckstofferfavors wine market order represents more than 40 percent of its budget expendi- tures in the 1986-87 fiscal year. The commission of 36 members would be equally split Con: Money hasn't between vintners and growers. Pros 'Cooperative For the joint commission to pass, separate referendums been spent wisely taken by the growers and vintners must both pass. The voting is based on both individual votes cast and on the spirit' must continue ByTIMTESCONI tonnage represented by each voter. ByTIMTESCONI Stiff Writer Sttff Writer Matanzas Creek Winery's William Maclver thinks For passage of the measure, 40 percent of those eligible Andy Beckstoffer said when he came to the Napa grape growers should stay in their vineyards and let must vote. Approval puts the joint commission in place for Valley wine country 15 years- ago there were two vintners peddle wine. a five-year term. classes of citizens: vintners and grape growers. And "Wineries are the ones selling the wine and therefore If the joint commission fails, two more referendums growers were decidely second class. should be making the decisions," said Maclver, vice will take place in April or May, one asking the vintners if As a grower, Beckstoffer considered this vinous class president of the Bennett Valley winery he operates they want a California Wine Commission and another system rather silly because — no matter what side of with his wife Sandra Maclver, winery president. asking growers if they want a California Winegrape the grape you are on — the common goal is wine. Maclver is opposed to the joint marketing agreement Growers Commission. Fortunately, Beckstoffer said, in recent years the between vintners and growers. He said most vintners in class distinctions have narrowed in the Napa Valley Napa and Sonoma counties will join with him in voting If neither of those commissions is approved, another and other North Coast grape regions, largely because of against the joint agreement, known as the Winegrowers vote will take place in June asking vintners and growers if the mutual appreciation for the delicate relationship of California, and supporting a vintner commission. they want to renew the present Winegrowers of California between those who grow the grapes and those who See Con, Page E7 Marketing Order. See Pro, Page E7 as Costa Mesa-based, Inc. (Jon and Orange-based Naugles Inc. and Pro Miami-based Corp;.; use another important perfor- Continued from Page El impact on wine sales. Continued from Page El , mance'-measuring device: the stop- make and market the wine. "Wine sales were 'up 8.5 percent The Napa Valley Vintners Associa- watch. If orders are not filled "We have developed a partner- through November (from the pre- tion has voted to oppose the joint within three minutes, someone is ship that has resulted in better vious year). I think the best is yet to commission. ' going to get a bad report card. wines and better grapes, and a come," said Beckstoffer. "We need Santa Rosa vintner Cecil De And'spies for the 2,600 units of. better lifestyle," said Beckstoffer, to vote this thing back-in because Loach, president of the Sonoma Irvine-based travel with who owns and manages 2,000 acres three years is just not enough County Wineries Association, said ,a scale to weigh tacos. of vineyards in Napa County and time.". his association will not take a Not surprisingly, the result of all 1,000 acres in Mendocino County. Beckstoffer is one of the 18 public stand on the joint marketing this spying, measuring and poking Three years ago when the state's California grape growers serving agreement because, "there are^ often goes into a computer. Restau- vintners and growers joined togeth- on the Winegrowers' 36 member' strongly held positions on both1 rant managers,can find themselves er, forming the, Winegrowers of board, which also includes 18 vint- sides of the issue." De Loach said a faced with a computer profile of California, the partnership was ners. The Winegrowers of Califor- majority of the association's 90 their outlet's shopper performance forged on a statewide basis, he said. nia, which was formed in 1984, has member wineries favors a vintner for the :past year. Management It was a historic alliance in which been bogged in controversy since it group. A minority supports the joint; then offers suggestions or instruc-: vintners and growers taxed them- was established as a marketing commission. A third and smaller, tions for improvement. selves to promote wine. order under the direction of, the faction wants no commission. Several companies deny bonuses Beckstoffer, who runs his wine California Department of Food and "I firmly believe we need some-' to outlet managers if their restau- grape empire from an office in St. Agriculture. ..thing. The worst thing would be to! rants do not do well during secret Helena, considers the joint agree- He concedes there have been have no commission at all," De shopper visits. Naugles' managers, ment a giant step in the maturity of start-up problems, lags in commu- Loach said. He said he favors a for example, do not get cost-control the California wine industry. And nication and some mistakes, But, vintner commission because "the bonuses, which -can be up to 20 he's fighting to keep it alive. he said, it's time to leave those money can -be more effectively percent of their salaries, if their "The Winegrowers of California problems behind and move on. controlled." secret shopper scores drop below seeks to spread that partnership to Beckstoffer believes much of the Maclver said most premium win- 90 out of 100, .'. 'the entire wine industry. It's a bold opposition to the Winegrowers of eries in the North Coast see the Naugles spends more than $6,000 venture in cooperative spirit,'1 said California is because it treaded into Winegrowers of California as an a month on shopper reports, which Beckstoffer, who supports the:joint sacred territory, threatening the unwieldy group that hasn't made I cost $10 to $15 each. The intelli- marketing agreement between traditional role of the Wine Insti- "much headway in wine promotion, ' gence-gathering program began af- vintners and growers. tute, a trade association for the research and education since its '• ter the chain was bought nine Beckstoffer said in addition to state's wineries. formation in 1984. He said it's time •• months ago by . At the strengthening the ties between "There are a lot of bruised egos,", to vote it out and.let wineries get on < time, Naugles had lost nearly ,$28 growers and vintners, the market- he said. "I have,heard no good with a commission of their own: ; million since July 1983. ing agreement makes good busi- business reasons for opposing the "The primary reason is that a -"We had our own gut-feelings ness sense because it has had an 'joint commission." winery commission would give us 'about what -was wrong, but we In the last three years, the Wine- more power and more say about • needed an outside source," said growers has collected $20 million the use of funds," Maclver said. , Dennis Boylin, Naugles' vice presi- through assessments on growers : During the last three years the , dent of operations support. "The and vintners. Winegrowers of California has mystery shopper was the best tool Beckstoffer said the program is squandered money on misguided ... to find out what was wrong." worth the money. It already has programs such as the "Julia Child ; The spies confirmed manage- paid dividends by increasing wine fiasco," Maclver, said. j'ment's suspicions, Boyln said. sales. He said in the long run it Will He was referring to tbe Wine- 1 "Naugles' food'was excellent and mean higher prices for wine growers' highly publicized cam- 'cleanliness, was pretty good, but grapes. paign in 1985 to make the service was relatively poor. People He bristles at the suggestion by celebrated chef.a spokeswoman for -didn't seem to be glad the customer some vintners that grape growers California wine. Child, a devotee of was there." have no business deciding how wines from throughout the world, Now they had better be glad wine should be promoted. Most refused to say .that California wines because they may be secretly grad- vintners would prefer that growers were the only wines she drinks. ed on their gladness at any given pay their money and stay in their But, nonetheless, she was paid time. The company is so happy vineyards — away from board $100,000 to make vague statements with the intelligence-gathering pro- rooms where programs, are such as "some of the best wines are gram that it now uses two indepen- planned. California wines." dent secret shopper companies to "That's taxation, without repre- Critics said Child was more inter- check each other's results. sentation. If one businessman ex- ested in the $100,000 she received 1 At Taco Bell's 2,660 stores, over- pects another businessman to for her Santa Barbara culinary all shopper-ratings have climbed operate under that yolk he is out of school than extolling the joys of "at least 40 percent" since the chain his mind," Beckstoffer said. California wine. The entire cam- started almost weekly inspections Beckstoffer worries that if the paign, created by a San Francisco 2'/2 year ago, said Michael Guido, vintners give the joint marketing firm, cost $345,000. regional vice president for agreement the thumbs down, it will Critics charged that the cam- . And customer damage the "cooperative spirit" paign was a boondoggle. It left a treatment, he says, makes a differ- between growers and vintners. spur taste in Maclver's mouth. ence in the bottom line. "I think that is something that "The money that has been spent Nobody is checking to see how anybody opposed to the joint com- heretofore hasn't been spent wisely glad the food spies are, however, mission must consider carefully. If and money hasn't come back to the which .is may be a good thing as the it is perceived,that vintners don't regional organizations," Maclver life of a professional taster can be want to work with growers, it would said.' Regional organizations, such difficult indeed. overturn 10 years of work," he said. as the Sonoma County Wineries Kentucky Fried Chicken's Birge Association, are doing some of the remembered days of smelling like best promotional work, he said. chicken while she was a spy with a "The Sonoma County Wineries ,cEir trunk full of red and white Association has set the standard for boxes. You cannot keep them in the regional organizations," ;he said. frpnt seat, -Birge explains, or else The association's annual: grand store employees will get suspicious. tour, in which dozens of-county . And you cannot throw them away, ^wineriesn'ravertogether'proTnotihi because you, could end up retriev- .their wines, is the "envy of the wine ing a forgotten thermometer from industry," he said. a dumpster. Maclver said he is strongly op- The 's current spies, posed to the joint marketing agree- age 22 to 36, start out earning about ment but "is concerned about $17,500 a year, plus all the chicken alienating our growers in the North they can eat; and work 10 to 12 Coast counties," He worries that if days in a row on the road and then vintners pull out of the joint agree- have five days off. ment it might send the wrong "It can get lonely," Birge noted, message to growers, damaging "the and the men seem to take it harder growing but tenuous alliance we than the women. have developed." He hopes that So the company tries to hire won't happen. shoppers who enjoy reading. "This is not an anti-grower thing, "They're more comfortable than at all," he said. "This is an opportu- people who say they like to play nity for all of us to get more control racquetball three times a week,'1 over how funds are used." Birge explained. - Maclver said premium wineries; Boredom isnot the only problem have contributed a "disproportion-' for'.'those who make a living by ate~ share" to the Winegrowers of eating. Mystery shoppers also have California. That's because the as- to chomp through all that food. sessments are based on a percent- Ofle Kentucky Fried Chicken age of the price of a ton of grapes. shopper put on 40 pounds in a He said premium wineries pay couple of months. more for grapes than wineries in Del Taco's lone shopper, who the Central Valley, putting a tighter asked to remain anonymous, sports financial squeeze on North Coast.: a basketball-sized paunch. But-he wineries. says it is not the result of Del Taco Maclver said North Coast winer- food, but rather because he eats at ies aren't getting their money's "the finest" dinner houses in be- worth. tween assignments to vary his diet