Let’s rewind about 20 years, back to 1986. This was the year that the 1984 Llano
Estacado Chardonnay won a double gold medal in the San Francisco Fair Wine
Competition. It was the first national award given to a Texas winery. As recalled by the
executive director of the competition, “This double gold brought real attention to Llano
Estacado in the American wine media. The NBC affiliate in Midland, Texas, even sent
out a reporter to cover the awards ceremony. There was lots of attention over Llano’s
double gold showing.”
Certainly, gold medals can make a big splash for a young winery. Actually only a few
end up becoming real stars in the highly competitive marketplace like Llano Estacado.
In my recent discussion with Mark Hyman, President and COO of Llano Estacado
Winery, he admitted, their 1986 double gold medal made a real mark for Llano on the
American wine scene. But, as Hyman admits, “It has been its steady step-by-step
growth and commitment to the fabulous potential of Texas wines that has made Llano
Estacado what we are today – the largest premium winery in the state of Texas.”
But, Hyman is equally quick to emphasize that Llano Estacado is only one of the larger
and fairly successful wineries in an expanding group that now includes over 160
wineries in Texas today.
He recalled our previous meeting back in early October of this year during a media tour
facilitated by the Texas Department of Agriculture. The overall theme of the this event
was to showcase the wineries in the Texas High Plains growing area (called AVA for
American Viticultural Area) and even more importantly the grape growers that are
working hard to fill the demand from wineries for Texas grown grapes. According to
Hyman, “We have a dire need for more Texas vineyards to be started, and more Texas
grapes grown to sustain this burgeoning industry.”
Hyman also shared some of his knowledge and insights with me during our
conversation. It was especially enlightening to find out how competitive Texas wines are
in the marketplace. According to Hyman, “Quality and price point in the marketplace are
of key importance. As Llano Estacado has grown, VP Winemaker Greg Bruni and I have
been committed to making improvements year after year. These are the little steps that
eventually have brought us to where we are today. Our work in combination with that at
other Texas wineries that are similarly committed is helping to put the mark on Texas as
the next up and coming wine producing region in the United States.”
Examples of the success that their efforts have bought are found in the presence of
Texas brands in the market place. Right now, Texas is the fifth largest wine producing
state, but about 95 percent of Texas wine is consumed within the state. This may sound
like Texas wines have only limited distribution. But, keep in mind that Texas is one of
the largest markets in the nation for wine by total wine purchased.
If we look at the competiveness of Llano Estacado in the Texas wine marketplace, it
comes out right up among some well known wineries that we often refer to as the “big
Boy” in the wine industry CLOS DU BOIS
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ROBERT MONDAVI PS
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LLANO
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BERINGER
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STERLING VINTNERS
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Llano comes in as the #17 brand overall among the literally hundreds of brands
reflected with growth %’s that outpace the majority of brands positioned above
us. Sandwiched between Robert Mondavi and Sterling vineyards
This is a great “opening slide” to look at us as to what we’re doing in Texas. But
since all we produce is 750ml, cork finished product, do we “really” compete
against Franzia 5L boxes, or Carlo Rossi 3L’s or Ste Genevieve 1.5L’s? I don’t
think so,… I think we attract a different, more upscale customer, looking to spend
a bit more. Followed by Becker, Messina Hof and Fall Creek.
So, let’s talk apples to apples, or in this case 750ml’s to 750ml’s. Up at the top
left hand corner of the table, click on SIZE, then click on 750.0 - the only size
we produce. We now pop up as the Llano #6 brand reflected among 750ml
brands in the state, moving ahead of giants like Beringer when comparing only
our 750ml sales to their 750ml sales.
Aware but Talk about grow….industry
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KENDALL JACKSON VR
YELLOW TAIL
BAREFOOT
CLOS DU BOIS
ROBERT MONDAVI PS
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LLANO
BERINGER
STERLING VINTNERS
LA CREMA
ESTANCIA
How has this evolved over time? Say five years ago and one year ago?
Mark:
What has contributed to this growth? Is it things that you did or changes in the
marketplace?
Quality product competitive price point
Three things –
Hire distributor personnal, build a network of experienced people from distributors
Motivate.
Jump into festivals – Texas State Fair, Conroe, Greune, tasting product. Brand
recognition. Madisonville – 15 wineries, but only 4-5 have distribution. Sixty-five.
Hire demo companies – Hire our own people. Extra effort.
Mark:
This more like an import model than the common export model for wine growing
regions. How do you see it?
Increased visibility – Tasting are now possible.
Mark:
Let’s talk about Llano as one of the larger, fairly successful wineries that’s proven that it
can be done.
Mission:
The simple mission of Llano Estacado, from its beginning in 1976 to its role as industry
leader today, has been to embody the fabulous potential of Texas wines. In 1976 “Doc,”
a Chemistry Professor at Texas Tech University, founded Llano Estacado Winery in
Lubbock, the first winery bonded in Texas after the end of Prohibition. Robert Reed,
Clinton McPherson and Roy Mitchell.
On you website you present a mission statement How do you see Llano’s role as a
leader?
Mark:
This mission began with 1,300 cases of wine released in 1977. Today, Llano Estacado
is the largest premium winery in the state of Texas, producing wines of world class
quality, and taking the lead in introducing not just Texans, but the entire world, to the
great wines made in Texas.
Please talk about the start and major milestones of growth (good and bad).
Mark:
Llano began as the passion of a group of Texas investors, including a Texas Tech
horticulturist and chemist who believed West Texas held the potential to become a
source of quality wine grapes. In the early years after the winery's founding the main
difficulty was convincing local farmers to invest in vineyards. To convince the local
farmers to simply experiment, Llano Estacado's original winemaking facility was
constructed. The construction of the new winery worked to encourage new grape
growers, and vineyards began to dot the Texas High Plains. Llano Estacado planted its
first vineyard in 1978.
The early 1980s were a period of expansion and experimentation at the winery. In 1980
production had quadrupled to 6,000 cases. In 1983 Llano Estacado replaced all its
equipment installing state-of-the-art tanks, crushers and other equipment in order to
continue to expand and make better wines. As Llano produced more and more wines,
word got out around the state that a small, upstart winery in West Texas was producing
quality wine. Texans took to the venture. By 1985 production had increased to 15,000
cases.
It was also in 1985 that Walter M. Haimann arrived at Llano Estacado. A former
President of Seagram Distillers Company, Haimann would help steer the winery to
entirely new heights.
Celling out in the state. Have to be ready to support wholesaler. Had infrastructure. But,
difficult to sustain. Aussies many new wines difficult to maintain. More loyalty. Blue Bell
business model. Need to invest in markets.
Restaurants – efforts ; Beckers and Messina Hof working; Restaurant Round-up. Better
communication, follow-up, target list, Wine week or month program.
How long was this in effect?
Mark:
It was in 1986 however that Llano made a real mark on the American wine scene when
it walked away from the prestigious San Francisco Fair Wine Competition with a Double
Gold award for its 1984 Chardonnay.
Between 1985 and 1993 Llano continued to increase production, quality and its visibility
in the wine industry. Llano's leadership in the development of the Texas wine industry
resulted in other wineries being founded.
All the while however, Llano Estacado continued to win awards and accolades across
the country and in Europe. With the high quality of wines and awards, Haimann struck
out developing an extensive distribution system across the United States, bringing
Texas wine to Texans and others everywhere. By 1993 Llano Estacado had increased
its production to over 50,000 cases of wine.
The mid-1990s would mark Llano's second great leap. In 1993, Haimann, convinced
Greg Bruni to relocate to Lubbock, Texas and take over winemaking responsibilities as
Vice President of Winemaking. Bruni, an experienced and award-winning California
winemaker, jumped at the opportunity to work in an industry which he believed was on
the verge of becoming a national force. The next year, Haimann brought Mark Hyman to
Llano Estacado to become Vice President of Sales and Marketing, now currently
President/C.O.O. The most professional management team in the Texas wine industry
had been assembled and plans began to further step-up quality and production.
In a period of three years, Llano Estacado further redefined itself and the Texas wine
industry. Llano Estacado was instrumental in convincing top California Grower Dale
Hampton to plant Texas Vineyards.
Llano Estacado expanded its team of growers and Bruni began working closely with
them, helping to expand production and quality, including the planting of the winery's
own experimental vineyard. The excitement of this latest evolution of Llano Estacado is
best exemplified in the introduction of "Viviano," the finest wine ever produced at the
winery and the State's first ultra-premium wine.
The future? More of the same...continue to lead the industry and demonstrate that
Texas is a wine growing region of the first order.
What is your vision for the future?
Mark:
How much influence does Llano have on others?
Mark: Talked to TWGGA – Ready for distributor? Brand, plan, done with it. Raymond
Haak talked, Mark 5000 to 2500 cases…How much time; festivals not distributors;
incentives, All over the state, move slowly. 7 million in Houston. Not be everything to
everybody. Wine education. Continue to be pioneer. What is your plan.
What do consumers want or expect – want good wine. Dry and sweet wines; Beringer
or Mondavi plan.
Llano Chard needs to be like KJ
Llano Blush needs to be like Beringer.
Gallo study, analyzing plan and study growth.
Phase 1 – Recognized varietals (85%); Reached phase 2
Frito-Lay – business model;
Three let’s talk about the dire need we have for more Texas grapes to be grown.
Mark: 140K; 200K cases in Five years.
Do not be afraid to – drink Texas.
Brand Continuity
TDA support -