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Q. Your company has built an enviable portfolio of quality producers that is both diverse and yet has considerable depth in many wine regions. How did you assemble such a roster of talented wine producers?
A. No master plan, really. Our portfolio has grown steadily and organically over the past 23 years. It began with just six small family-run wineries back in 1987 (from California), and, one winery at a time, the portfolio has grown to over 400 producers today. How did we do it? I think the answer to that is really very basic; it boils down to tasting. Michael and I taste every wine from any producer who wants to work with us, and only if we are impressed with the wine's quality, its value, and finally, the philosophy of its owner and/or winemaker, will we invite them to join us in our quest to "save the world from bad wine!"
Q. You have enjoyed long term relationships with two dynamic importers, Terry Theise and Marc De Grazia. What role has that played in your company's success?
A: Both have played an enormous role.
In 1990, when I first met Iano de Grazia at a wine dinner, we didn't yet sell ANY Italian wine. He and brother Marco were impressed with what we were about (and that we were also a team of "brothers"), and basically took us under their wing, travelling with us to Italy and teaching us everything they knew about Italian wine. What better "teacher" than experiencing Italian culture, food, and late night philosophical discussions over many glasses of incredible vino? And ever since, we have been super-passionate about Italy, its culture, and its great wines! In the early days, having Marc de Grazia's portfolio certainly helped put us on the map as a serious Italian wine importer and today, we remain one of the leading importers of Italian wine, both from de Grazia and via our own direct relationships. As for Terry Theise, he is more than just an importing business partner of ours - he's like family - and he and his wines have been an essential part of who we are, ever since we started working with him in 1993. Back then, we not only became the leading importer of high quality artisanal German wine producers in the US (the portfolio has now famously expanded into small Austrian wines and "Grower Champagnes" as well), but we aligned ourselves with someone of great passion and principles, clearly enunciated for all to see through his vast writings over the years. If you are interested in learning more about Terry's philosophy about wine, I highly recommend his new book, "Reading Between The Wines" which has become a national best seller and can be easily found on Amazon.com.
Q. Like most teams, you have experienced roster turnover. For example, Ben Hammerschlag replaced Dan Phillips as a primary source for Australian wines. How competitive is the marketplace among distributors seeking well-connected importers?
A: "Roster turnover," as you call it, is a necessary evil in this business. I am fairly sure we have less turnover than most importers, but the truth of the matter is that things in the wine business (and life!) are not static - it's an ever changing world and you gotta adapt. Winemakers come and go, generational changes occur, wineries get sold, etc. and quality is not always a given. We taste a producer's wines each and every vintage - and if the quality slips, and it becomes a trend, we will show the producer the door. That's not a comfortable thing to do, but we feel strongly that our most important asset (and practically our only asset!) is our reputation. Any time an individual consumer turns a bottle around and sees our name on it, we feel it is our job to deliver a wine drinking experience that's as positive and pleasurable as possible! Generally speaking, producers and importers seek us out because they know of this reputation. We will taste their wines and if we think the quality is high, and especially if they offer real value, and/or complements our portfolio, we'll likely jump on it.
Q. It has be well chronicled that after the economic meltdown, consumers did not necessarily forsake wine drinking, but rather turned more to value priced wines. The financial downturn undoubtedly impacted the New York metropolitan particularly hard. Did your company have to make adjustments in sourcing wines your retail customers would be able to sell?
A: Without a doubt. We were really fortunate during the past few years, because our portfolio was already so well balanced - with value wines at ALL price points - and it allowed us to adapt to the changing market conditions much better than most. Smaller importers, who sell only high-priced collectible wines, like Burgundy for example, really struggled to survive (and some haven't). But even during the darkest days, when it seemed all anyone wanted to drink was Malbec from Argentina and inexpensive liters of Gruner Veltliner from Austria, luckily we already had a great stable of value wines like these to offer them!
Q. You have added The Pinot Project to complement your Purple Mountain and Rock River wines, labels your company created. How involved are Skurnik employees in the actual grape sourcing or winemaking decisions for these labels? Clearly, they are designed to provide affordable, quality wine made from often expensive grape varietals. Are the wines sufficiently different that you are able to avoid producers you represent from feeling you are competing with them?
A: Well, one of the silver linings of an economic recession is that when wineries are temporarily unable to sell their high priced wines, in order to survive and/or make it to the next vintage, they are willing to sell their wines (already in barrel or in bottle) at a steep discount, to trusted friends in the business like us. This is the prime motivation for creating value labels like The Pinot Project. Just a few short years ago, it was almost impossible to find high quality Pinot Noir from California for under $20 bucks a bottle - and we've obviously hit a nerve with The Pinot Project, at a MSRP of under $15, because we can't keep the stuff in stock! We are sourcing wine for The Pinot Project by buying finished wine from multiple (good) producers, and blending them together along with a talented winemaker friend of ours. But in other cases, like our new brand of Cabernet from Napa Valley called Three Rocks, it's sourced from already finished wine from a single high quality winery we work with, at a much reduced price. The bottom line is brands like these represent great value for consumers which is why they are selling so well.
Q. Much like a baseball scout, it must be gratifying when you find that next great talent. You represent a number of supremely talented winemakers who have gained cult or near cult standing. Some of them may have been inherited because they were making wine for producers you already represented, but how do you go about searching for talent to add to your roster?
A: I love baseball analogies - I've always been a huge fan! Yes, it's gratifying when you land the up and coming new superstar to add to the portfolio... our customers continually look to us to bring them exciting new things. How do we find them? Like I said earlier, at this point in our career, they mostly come to us, which is nice! If we like what we taste, we will usually follow it up with a visit to the winery to make sure we are impressed with their operation. Of course in the early days, we didn't have the option of wineries seeking us out, so we had to pound the pavement and "sell" them on the idea of our company!
Q. Consolidation in the wine distribution industry seemed to pick up quite a bit of steam during the past decade. How do smaller or more regional distribution companies compete? I know you have producers, including many from France, you represent country-wide. Is there a plan to grow into a more national company?
A: Honestly, we've never really had a plan for anything in this business! We follow our palate and good things have followed! But to answer your question, we don't have any desire to become a large national company. We call ourselves a "big small company" and we will likely stay that way. We are a family business (with the second generation making their presence felt now!) and I can honestly say that the way we run our business now, is not that different from what we did as a small start-up: Taste and select great wine, hire great people to tell the story, and offer great customer service. It's really no secret. It's just "Business 101" applied to wine i.e. provide a good product at a good price, give good service, and thank the customer for their business. That's how we compete!
Q. We are seeing increasing attention being paid to wine producers from areas such as Israel, Greece, Bulgaria, Slovenia and to table wines from Portugal. Are there wine regions one might call non-traditional in which you have a particular interest in mining for talent to represent? Do you see any of these or other "lesser" regions emerging as a future wine force?
A: Funny you should mention Israel, since I just came back from a trip there and we're bringing in some Israeli wine now for the first time! Years ago, we were not all that impressed with the wine quality from Israel so we never got involved importing them. However, this was an eye-opening trip, as quality has increased tremendously, and we chose a winery called Tzora Vineyards to begin our Israeli wine "portfolio" - and the wines are really excellent! As for other "emerging" regions, we haven't gotten too obscure yet, but we do have some wonderful value wines from South Africa, Hungary, and even New Mexico. We're definitely interested in developing a Greek wine portfolio at some point and not only because I love to travel to Greece! The bottom line is we are always looking for great wines, wherever they may come from, so if Bulgaria turns out to be the next Napa Valley, we'll surely be there soon!
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