Like any forecast, it will be off; hopefully only a little. But a new year brings a sense of optimism, hope for new beginnings, and the pursuit of making predictions. At the beginning of every year we set out to think strategically about the direction of LDV Winery and layout our “best guestimate” for the upcoming year.
Our business is very different than many other businesses. Most businesses focus on one or two parts of the business cycle (e.g., manufacturing, retail, or farming). A cotton farmer grows cotton but does not make the jeans. A steel firm makes steel but not the automobile.
An estate winery like LDV does everything – from planting the vine to selling the bottle of wine that you open at the holidays. Therefore, it is a complex and difficult business to manage to ensure success.
Of course, since a major portion of our business is farming, mother nature rules and a lot of what happens is out of our control. Another major component of our business is retail and thus subject to the whims of the marketplace that can be influenced by economics, politics, or perceptions. But we must be nimble enough to respond.
We analyze and make forecasts about the farming, manufacturing, production, distribution, regulatory, retail, wholesale, and customer service sides of LDV Winery each year to ensure that it is economically-viable while achieving our mission.
What forecasts can we make so early in 2017?
Here are five we will be monitoring.
1. Production will be higher as vineyard management practices instituted previously will improve yield and aging wines that have been cellared are ready to be bottled.
2. New wines will be coming into the marketplace faster than the past.
3. LDV will stay committed to terroir-driven, single-varietal winemaking.
4. Our customer reach will be broader and deeper into the marketplace in Arizona and across the U.S.
5. The connection to our land, hand-crafted quality winemaking, and customers will guide decision-making.
And we will continue to have fun. The day we are no longer having fun, will be the day we start looking for our next adventure.
Cheers to a year full of fun!