SAM TANNAHILL Founder, Winegrower
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1 SAM TANNAHILL Founder, Winegrower
2 COMPANY BACKGROUND When established, products, market, current employment and future expansion/growth plans? A to Z Wineworks was established in 2002 with a 2,500 case production. Last year we produced 375,000 cases We currently have 5 labels: oa to Z Wineworks Pinot Noir, Chardonnay, Pinot Gris, Riesling and Rose orex HILL (acquired in 2007) Pinot Noir and Chardonnay ofrancis Tannahill Pinot Noir owilliam Hatcher Pinot Noir orock and Hammer Pinot Noir
3 COMPANY BACKGROUND, cont. When established, products, market, current employment and future expansion/growth plans? We sell in 50 states and 7 different international markets We have 64 employees We will continue to grow sales by 10% - 15% a year
4 SUCCESS What are the two or three most important factors to your ongoing success? The quality of our wines Our culture of innovation and our drive for excellence The high perception and reputation for the quality and sustainability of Oregon wines (especially Pinot Noir) nationally and to some extent internationally
5 RISKS What are the two or three greatest risks to long-term business success? Cost of goods compared to other wine regions around the world Increasing national and international competition for shelf space from other wine regions Consolidation in both distribution and on/off premise markets Lack of infrastructure and R&D to support our industry Change in private agriculture lands over the next 20 years
6 GOVERNMENT Site some examples of how government (state or local) is helpful in your business success? The creation of the industry funded Oregon Wine Board has been very helpful to the industry The ODA (especially marketing support) have been very helpful as well Funding for OSU and it s extension services especially in light of climate change, although much more needs to be done The current work that Business Oregon is doing on the F and B roadmap should prove very useful
7 IMPEDIMENTS Two or three key impediments from state or local government to your business success? Too many regulatory agencies Not enough funding for a world class R&D / Education program to support a world class industry Lack of a clear coordinated (local, state and federal) marketing/export effort
8 CHANGE If you had to choose one, what do you think is the most critical change we can make at the State level to further expansion and success of small business. Other than more funding for R&D/Education, a dedicated Food and Beverage office that coordinates and develops strategy for F and B marketing and export efforts, recruits F and B talent and businesses to move to Oregon and eases and streamlines F and B regulatory requirements
9 Source: Oregon Employment Department, NWFPA, EcoNorthwest Oregon Food Processing Fast Stats 637 Total Food Processing locations 114 Plants in 23 Rural Counties 30 of 114 rural plants in distressed counties 24,700 Direct Employment (jobs) $l4.2b Total Output & Value Added 10+ Sectors for Food & Beverage
10 Middle-Wage Food Industry Opportunities F&B Comp. Wages & Benefits = $49,554 with wage distribution in percentiles Animal Foods Grains & Oils Sugar /Conf. Fruits & Vegs Dairy Source: IMPLAN; ECO Northwest May 1, 2014 Presentation
11 Oregon F&B Manufacturing vs. All Other Job Growth During Recession Source: ECONorthwest May 28, 2014
12 Employment Trends Food Manufacturing/Beverage, Index 2002 = 1.0 Oregon US
13 Global Middle Class Market is Expanding Shares of Middle Class Consumption, Source: ECONorthwest
14 Goods Producers Improving, Yet Smaller Than Before 14
15 Software in Context 15
16 It s 5 O clock Somewhere 16
17 Key Industry Roadmap Core Project Objectives Target industry growth opportunities based on Oregon F&B industry s competitive advantages Focus on 5-6 key industry subsectors Develop strategic initiatives with actionable outcomes with both short and long term tactics for a 10-year horizon Create metrics to measure success
18 Key Areas of Focus: Technical, Educational & Research Infrastructure R&D product innovation, product testing and certification capabilities Higher education industry related business tracks Market Assessment Gap analysis of critical supply chain needs and opportunities Talent retention and recruitment Market Growth Brand Oregon marketing campaign Develop export strategy; Asia markets
19 Action Plan: Potential Outcomes Organize coordinated efforts to: Overcome barriers to reaching markets with expansion potential Promote statewide brand to boost marketing strength Strengthen supply chains to meet expansion opportunities Coordinate public and private sector efforts to achieve industry growth Enhance R&D capacity Fill workforce gaps
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