Walking through its vineyards and feeling captivated by its views and surroundings is a global experience that even the most prestigious brands have not hesitated to recognize (Traveler, Tatler Travel Guide, Andrew Harper). Because Retuerta LeDomaine Abbey It is much more than a winery: it is pure flavors, it is silence and sophistication, it is unique dishes and renowned broths. It is, in short, a sensory luxury converted into a hotel and spa that has shared with De Salas its wisdom and good work to introduce us to the delicious and seductive world of wine. For this we have counted on Álvaro Pérez Navarro, Director of the Terroir Academy of Abadía Retuerta itself, who has given us the Five essential tips to get into the wine business.
Knowledge of the wine sector and market
When starting any type of business, we must inform ourselves well about the sector and the characteristics of the market in which we want to enter to play. We must know that the wine market is a “saturated” market at a global level, which generates surpluses as a general rule, with exceptions in difficult vintages from a production point of view. Another element to take into account is that wine making is an agricultural business and, like all businesses that come from the countryside, they have a variable of uncertainty, especially from the meteorological point of view as well as possible diseases or pests. Furthermore, although it is a natural product, it is also alcoholic, and may be subject to new tax rates. You also have to know the specific regulations of each market, study the size of the different destinations, consumer trends, and their particularities (associated taxes, labeling...)
Business model
Obviously, it is necessary to ask questions such as what type of wine do I want to make? White? Red? Sparkling, sweet, fortified...? What market segment do I want to be in? The wine business ranges from bulk (unbottled wine) to wines classified as Premium, which go up to 6 euros in final consumer price, to move on to wines super premium, between 6 and 15 euros more or less, going through the Ultra premium and so on until reaching the segment Icon, above 20 euros, which represents only 1% of production and is aimed at 5% of the market. A possible answer to this question is another question: Who will be my target? What type of wine do you like and how much are you willing to pay? That is, what type of consumer I want to reach. There are already very specific wine consumer studies by country/culture. Ultimately, it's about choosing my niche.
Choice of production area: Terroir
Once the type of wine has been chosen, we must analyze what factors will have a direct influence. Suppose I want to make a cheap wine, with a small margin but a lot of volume. In this case, the price is in the first place of the purchase decision, so neither the designation of origin nor the terroir is so important. I'm sure they will help but possibly my sales prices would not support these added costs. Here you could go directly to the bulk wine market, which is normally at tight prices due to surplus wine, and look for wine profiles related to the style of wine that I want to make and not even have to invest in a bottling company because now there are companies that facilitate this service with the latest technology. In this case the investment and terms are shorter. This is not the case if, on the contrary, we suppose that I want to make a great wine. So the patience, the deadlines and the investment are much greater. I should have my own farm and my own vineyard, which is linked to a “terroir”, which is not only the type of soil, but also the microclimate of the specific area, the altitude, the orientation of the vineyard… therefore, I must choose the grape varietals that best adapt to that terroir. As a general rule, the great wines of the world are linked to a specific terroir that gives it its own personality and singularity, unique and inimitable. That wine can only be made there in that terroir. Here would be the great vintage of Burgundy or Champagne, the Premier grand cru classé Bordeaux or paid wines in Spain.
Maybe I should buy my farm in a highly reputable producing area, with great tradition and recognition and with a designation of origin. In addition, I must choose a team with good know-how, have my own winery, equipped so that I can produce according to my style and ensure quality consistency in the market.
Marketing and Communication Plan
It is as important as the previous points. Both for a cheap wine where I must establish a brand strategy aimed at large distribution and for a large one, today it is not enough to have a good wine, an impressive label appropriate to the personality of the wine and a lot of desire. A lot is often invested in infrastructure and talent in viticulture and production, but we must not forget how I am going to reach the market and my consumer, the bottle, the label and the construction of the brand, which is what will differentiate from the rest. A journalist once asked Baroness de Rothschild if she had a hard time creating a great wine brand. She answered no, that the most difficult thing was the first hundred years... I must know my benchmark, online communication strategy, way of selling, image, network management... I must define, in short, how I am going to compete out there.
The route to the market
It is also not enough to believe that “with my contacts and what they like about wine, I already have the production sold.” An adequate commercial strategy is required, good negotiation with the commercial partners that my product needs, distributors with a structure that allows them to offer a good service, a correct price and, finally, again, a human team with training and experience that knows the rules of the game and can observe, being in the market close to the customer, key to business success.
From De Salas, we surrender to your advice and thank you infinitely for the time you have dedicated to us.
Now all that remains is to visit what was once the Santa María de Retuerta Abbey, from the 12th century, and which today has consolidated itself as a wine tourism, gastronomic and cultural reference, at a national and international level, with its Wellness Center & Spa Santuario LeDomaine , its restaurants run by Marc Segarra which, with a Michelin star, presents new menus, and finally its winery, of which today, we know a little more.
Gala Mora
DESALAS Lifestyle
