Blog | Benchmark Consulting

Recovery is upon us…that is if you are producing…

October 2, 2012

Financial Symposium attendees hear details of who benefits most from ongoing sales boom

by Paul Franson

Napa, Calif.—The Wine Industry Financial Symposium held Monday and Tuesday was itself an indication of the health of the recovering wine business. Fully 330 lenders, growers, wine companies and suppliers attended the conference, up from 260 last year.

Vineyard executive David Freed started the symposium 21 years ago to improve communication between wine businesses and sources of capital. The only surprise this year was that more wine executives didn’t attend to gain valuable insights and rub elbows with bankers and other lenders who could make the difference between success and distress sales of their businesses.

Big three’ grew 8% Freed noted that domestic wine producers are increasingly splitting into two segments: the top 16 to 20 who are good at building brands and producing efficiently in volume, and the rest, whom he said “exist in the luxury space.”

He noted that the big three—Gallo, The Wine Group and Constellation—grew 8% on a huge base of 150 million cases. “They represent in real terms almost half the industry’s growth.” The next five players—Trinchero, Bronco, Treasury, Delicato and Kendall-Jackson—represent 51 million gallons and grew at 3.5%. “They were very successful, too,” Freed noted, with Trinchero doing an outstanding job.

He also noted that Kendall-Jackson had the lowest growth from that group, but conceded, “They seem to be managing for profitability.”

The next players—Don Sebastiani, J. Lohr, Bogle, Charles Krug (Peter Mondavi family), Diageo’s Beaulieu and Sterling, Korbel and Fetzer—grew 1.3%.

That doesn’t leave much for smaller wineries.

In a panel discussion of lender representatives, Perry DeLuca from the Wells Fargo Bank Wine Industry Group assessed winery growth, too. He noted that it’s tied to increased retail sales, U.S. wine exports and California winery shipments, all of which have long-term trends going up.

DeLuca said the top 10 wine companies produced 222 million cases in 2011, up 7% from 2010. These companies have been making acquisitions, mostly with cash, to buy vineyards and winemaking facilities. Interest rates are very low, so money in the bank earns little, and these cash-rich wineries are investing in assets as a more likely way to make money.

Careers in Wine

Hiring Process: Not About Who, but About Why?

September 28, 2012

Although the Selection and Hiring Process may seem time and step-intensive, hiring the right person for the right job is one of the most important responsibilities a company has – one that has far reaching and long lasting effects. Investing the time at the front-end of the process by selecting the right recruiting firm and carefully and thoughtfully deciding with them what functions the person must perform and the skills necessary to successfully perform those functions, will help you attract, hire and retain your human capital.

A small to mid-size business invests 30%of budget dollars in humans – that is why recruiting and retention matter. When we think of our people as an investment, it begs the question, what are your expectations for the dollars spent? What do you want to see as a return on that investment? Before making that next investment, take a moment to determine what you truly need and then make your plan. Take a sufficient amount of time to outline each step by beginning with a solid recruiting and hiring process.It is important to develop a recruiting process that suits the needs of your company, one in which you are comfortable enough to use routinely.

Often, when an employee leaves, it feels natural to want to replace the person and hire for the same role when, in fact, the situation presents a great opportunity for you to assess your current staff. What are your teams strengths and skills? Where are the gaps?

Perhaps the position previously held was sufficient at the time, however now we have a chance to add skills that are more in-line with the company’s needs and vision.

Once you have identified the skills present, you can now define the essential skills and functions needed to fill the opening. This brings us to the next step, defining the position.

Capturing the essential functions, experience, knowledge, skills and abilities in a job description will provide a guide for us as we begin the quest toward filling the position. Job descriptions play a key role to not only define the position initially, it is used to craft job advertisements, to set expectations both during the interview and post-hire, support for daily coaching and, if necessary, as a document for disciplinary actions.In addition, the job description is a terrific place to begin when crafting your interview questions. Begin with the essential functions. Take each function and create behavior-based questions designed to get the candidate to describe how/when he/she performed such a function, what tasks were involved, what actions were taken and what were the overall results. Using a standard list of skill-based and behavior-based questions provides an equal assessment field for which you can evaluate candidates.Additional tools are available to assist with the decision-making piece of the equation. Consider, for a nominal amount of time and money you can incorporate reference checks, assessments and telephone screenings. These tools, although helpful, do not provide the answer; these tools provide insights and additional information for consideration along with the other critical pieces.

Recruiting best practices includes taking a holistic look at all information available to make the best selection for your company’s needs.

Careers in Wine

How to Ace Lunch Interviews?

September 20, 2012

How to ace lunch interviews? You made it through your first interview! Your second interview is over lunch with your perspective new boss. It is at a great restaurant near their office and you have been there before. What do you need to know? What will the employer look for? And this is the wine industry so??? wine with lunch or not?

The Legend

Henry Ford invited job candidates to lunch with him. He would observe if the candidate would salt his food before tasting it. If he did, he would not hire him. If he tasted the food first, he was a person who evaluated situations before taking action. Henry Ford believed in testing his candidates and this was it. Many employers evaluate candidates during lunch interviews for things you never think of.

The Test

Are you ready for your test? You expect hard questions, but many employers want to see how you act in different situations such as a lunch interview. A lunch interview means you need to juggle a meal, good manners, answer questions while eating a meal, and still be persuasive. You still need to be aware of being observed while you answer or ask questions.

What is the test? You may not know, but employers are looking for certain traits. It could be character, integrity or certain personality! You cannot prepare for this part so just be natural. Would the employer do something to see how you would react? It is possible. It is more likely that during the meal, he may describe a scenario and ask for your opinion. Remember, they want to see how you think. There is no right or wrong answer or is there?

About five years ago I read about how CEOs evaluate candidates based on how they treat waiters in a restaurant. Some may call it the unwritten rule of lunch interviews. Would an employer be above staging something and seeing your reaction? You may never know if it was staged or not! Handling mistakes, poor service or an accident provides insight into the candidate. A person who is nice to the employer and rude to the waiter or to others is not a nice person.

Personal

This an interview and you should dress for it. You never go wrong with a great suit and good grooming. But again the wine industry as a whole is not corporate. If everyone at the first Interview was in fuzzy vests and jeans …then you can tone it down but never to their level. Always collared shirt, jacket and khakis for the guys and a nice tailored dress & or slacks for the gals.

Do your research and have questions for the employer. Bring along your questions, a portfolio of your best work and anything else you think is important. Manners are important, but you need to juggle that and trying to impress the employer too. Order something simple so you can eat and answer questions without difficulty. You want to appear confident and at ease with the situation.

The Interview

Arrive early and wait for the employer. Allow the employer to lead, wait for him/her to sit, take the napkin and order. Drinks??? You can keep it nonalcoholic such as ice tea, sparkling water or perhaps even juice, but remember this is the wine industry…follow your potential bosses lead… Ask him/her what they would like then order accordingly. Know what you will order from the menu before you get there. It takes the pressure off, if the employer makes a quick selection. Be polite to the server. Don’t make a big deal about a mistake.

Remember the employer sees how you handle everything. Don’t eat too fast, or eat and speak at the same time. Eating too fast or not at all looks as though you are nervous. Small bites will keep you ready to answer or ask questions. Never order dessert unless the employer does. The interview is not over until you are gone. He may observe you waiting for your car or how you handle a problem. You are always being evaluated.

Simple things will prevent you from getting the job. How do you finish the interview? You should have questions or sample of your work to demonstrate your interest in the job. Be conscious of the employer’s time. Make your points and avoids mistakes, how you handle things will either help you get the job or keep you from it. What are you going to do? When you are finished with your meal fold the napkin and leave it by the plate.

Final Thoughts

Lunch interviews put you on the spot! Keep in mind that the employer is observing you eating, answering questions and how you deal with problems and people. You can only prepare so much for this type of interview. You can practice the questions, work on your manners and even work on your people skills, but you need to act natural. Most experienced managers or executive see right through someone who is not genuine. Being genuine and confident is important.

Careers in Wine

Change in our Midst

September 12, 2012

We are seeing enormous change in the wine business. One can continue to expect significant changes in the way wine is marketed and sold, with increased global competition.

In any economic climate, you must be able to find the right people for key positions. Motivated, successful people do not read the want ads, nor do they respond to haphazard telephone sales efforts to recruit them. However, talented and qualified candidates do respond to reasoned approaches from people and organizations that they trust.

For twenty years, Benchmark Consulting has conducted retained search exclusively for the wine community. We have provided the widest possible universe of qualified, motivated candidates in the sales, marketing, general management, financial and technical/production functional areas for our clients.
Our success has been based on simple beliefs and hard work.

Flat Fee Recruiting is based on that belief. With this latest facet we still bring you the Benchmark recruitment process without the hidden fees you often find with typical retained search organizations. One fee..not a percentage. Quality process, qualtiy candidates…cost savings to you. Contact us today before this offer ends at the end of September.