St. Francis Winery & Vineyards: CEO Chris Silva Talks to Luxist About Wine
Luxist sat down with Christopher W. "Chris" Silva, president of St. Francis Winery & Vineyards to discuss the wine industry and what his Sonoma, Ca.-based winery is doing to beat the competition. St. Francis was a Luxist Awards' Readers' Choice finalist for Best Domestic Red Wine in June. (See Daily Finance's CEO Spotlight interview with Silva).Luxist: What sets St. Francis apart from its peers?
Silva: Our commitment is to quality and to Sonoma. 100% of our grapes are hand-picked in Sonoma County, a place that we have always seen as one of farmers who make wine. We believe that we can grow and make wines here unlike anywhere else, and that our minimum intervention, maximum extraction approach to winemaking results in the kind of rich, complex, handcrafted wines that could only happen in Sonoma.
Luxist: Can you discuss how St. Francis only uses and buys hand-picked grapes from Sonoma growers? Why so?
Silva: I am a fifth generation native of Sonoma County. We see ourselves as farmers who make wine, and I think we have captured our passion for farming in each of our wines. Though most of our grapes come from our own estate vineyards, we revised our contracts for all purchased grapes to ensure that rigorous viticulture quality measures are adhered to, all at the Winery's direction, in every vineyard from which we buy grapes. For example, "when to pick" the grapes is now the Winemaker's decision and is no longer based exclusively upon degrees Brix (sugar levels), but instead upon several factors, including degrees Brix, but also including grape color, texture, flavor, aroma and sweetness, as well as the grapes being free from any kind of MOG (material other than grape).
Luxist: Can you talk about why some of your grapes are picked at night?
Silva: We started picking almost all of our Chardonnay at night beginning about three years ago. We floodlight the vineyards and start hand-picking around midnight-it makes each vineyard look like a movie set. By doing this, the hand-picked Chardonnay grapes arrive at our Crush Pad by 5:00 am and our cold to the touch, usually around 42 degrees. By arriving in the cold, dark of night, the cold Chardonnay grapes have not been compromised by heat or light-they haven't sat in the sun cooking. By crushing the grapes cold, we have been able to hold onto not only those wonderful, rich flavors and aromas, but the bracing acid levels that provide wonderful balance in our Chardonnay. This crisp acidity is particularly evident in our Estate Chardonnay vineyard below the fog line in the Russian River Valley. Night picking our Chardonnay is an example of putting time and money into better quality for the long term success of the brand. Most people who taste our Chardonnay agree.
Luxist: Describe how you sell the bottom ten percent of your wines to the bulk market. Why do you do that and what is it used for?
Silva: This is one of our single most effective quality measures. After constant tasting and re-tasting protocol in our barrel room, our winemaking team is required to designate the least desirable ten percent, per varietal, per vintage, of all wines in our barrel room. "What is the least desirable ten percent of the '04 Merlot, and the '04 Chardonnay, and so forth." We then take that ten percent and sell it, either to other wineries or on the bulk market, even if we sometimes do so at a loss-but the bottom line is that we remove it from the Winery before we begin blending. By removing all mediocre or undesirable wine from our Winery before composing our final blends, the result is that each finished wine contains only blending components that our winemaking team is enthusiastic about. We will never "lose mediocre wine in a blend." Rather, we will sell it so that the only wines we blend are outstanding and worthy of the St. Francis name. It is not an inexpensive practice, but most people who taste our wines understand.
Luxist: Tell us about the report cards you issue to growers. Can you discuss the importance of quality and how that is best communicated with suppliers?
Silva: In 2003 we met individually with each of our grape growers, at that time we had just over 70. We told them of our plan to issue letter grade, quality based report cards to each of our growers. Grapes that did not receive an "A" grade or "A minus with promise of reaching an A" in both the 2003 and 2004 harvests would no longer be a part of our program. That took us from just over 70 grape growers in January 2003 to about 35 grape growers today-entirely on the basis of grape quality. In other words, we canceled grape contracts with about half of our grape growers because they didn't earn an A grade. As part of this Grower Report Card process, we revised all of our existing grape contracts to include higher Vineyard quality protocol, and grapes that are grown in cooperation between grower and Winery but to Winery's quality specifications. We also put our winemaking team in charge of grower relations-so there is no middle man between grape growing and winemaking. Our winemaker spend as much time in the vineyards specifying their exact grape quality needs in each vineyard. And months before each harvest, we're dropping fruit on the ground in each of our estate vineyards, which increases richness and concentration of the remaining fruit. Our estate vineyards are finally mature, well cropped, and producing most of the grapes we use.
The result of all this is that we now have fewer grapes, but I know for a fact that we have better grapes. Any chef or jeweler will tell you that the final product will be far superior if you start with outstanding raw materials. The same has always been true of wine-and that's what we're practicing in our vineyards each day.
Luxist: What strategies do you employ with your distributors?
Silva: A key component of our sales strategy is to ensure that every one of our sales people have heard and tasted the specifics of our quality story. I remind them how important their job is and how our mutual success depends upon them believing in the product we have asked them to sell. So we discuss and taste our quality at every one of my sales meeting across the country. No graphics, no splashy charts, no PowerPoint. Just bottles of St. Francis, wine glasses, a corkscrew, and a sip by sip discussion of what they are tasting as a result of our specific quality enhancement efforts in the vineyards, on the crush pad, and in the cellar. No green flavors in the Cab we are tasting? That's because of our fruit dropping and leaf pulling efforts under our farming plan that gives us maximum ripeness and structure. Creaminess as well as balanced acidity in our Chardonnay-that's because we night pick these grapes.
We have some terrific, talented, experienced sales people across the country. They have taught me that there are two critical moments of truth between a winery and a customer. The first is when the customer sees the bottle on a store shelf or wine list and chooses to buy it over other wines, and the second is when the customer actually tastes and enjoys the wine. Word of mouth, brand familiarity, ratings, price, and other issues often come in to play, but a sales person who has tasted, understands, and believes in that bottle of wine will stand behind that bottle and get it in front of customers, either on a wine list or on a retail shelf-so that the customer's decision to buy that bottle-the first moment of truth-becomes more likely. The second moment of truth, when the customer tastes and enjoys the wine, is what creates the relationship between the customer and the Winery. That's our job, and the relationship will be a long one if we make sure its all about quality.
Luxist: What is the future of the US wine industry?
Silva: Cream always rises to the top, and we will continue to see that in the US wine industry.
Luxist: What is in the future for St. Francis?
Silva: We are going to continue to treat each vintage as a transition year toward higher quality. More night picking, more hand sorting tables, better barrels, and even greater quality efforts in our vineyards. We are also going to continue to move in the direction Green Practices. We are proud of the fact that back in 2004, we were the first in Sonoma Valley to install a 457 kw solar energy system on the roof of our cellar and barrel room. In the summer we get up to 40% of our Winery's total energy needs from the sun, enough energy to power 450 homes. In the late 1990s we worked with the Army Corps of Engineers to develop and designate 40 acres on our Lagomarsino Estate Vineyard as protected wetlands. We received the 2009 "Best Practices Award" from the Business Environmental Alliance of Sonoma County "[i]n recognition of environmentally sound business practices." We are now working with lighter glass, cleaner operations, and more stream and creek friendly water practices to show even greater environmental leadership in the years ahead.
Luxist: How has St. Francis fared during the recession?
Silva: Our sales have actually increased over the past 24 months. For example, our Sonoma County Cabernet Sauvignon was just named one of the 20 most popular US restaurant Cabernets [in Wine & Spirits Magazine's annual restaurant poll]. I attribute this to two things, quality and value. I don't think wine consumers are concerned only with price. I travel nearly 100K miles per year and what I see is concern about value, which is different than price. Value can be had across the pricing spectrum. Make a consistently great bottle of wine and price it a few bucks less than it is worth and that wine will sell. That has always been our premise at St. Francis, and our Winery is doing pretty well in a difficult economy for precisely that reason.
Luxist: What is the best decision you've made guiding the winery through the downturn?
Silva: That quality is the ball you cannot take your eye off of, all the more so in a difficult economic environment. We have made the decision to invest time, expertise and capital into quality, at a time when other companies are cutting corners. Better grapes that are 100% hand-picked in Sonoma, hand-sorting tables, smaller tanks, French oak barrels, night picking our Chardonnay....most people who purchase St. Francis wines won't hear me talk about our passion or our enhanced quality efforts-but they will taste it. And they will like what they taste as a result. I have never been more convinced of that, and it inspires us greatly.
Luxist: Can you talk about the market? Where have consumers cut back?
Silva: Proper channel management has taken on additional importance in the changing economic landscape. One area where we have seen significant pullback is in restaurant wine purchases during the economic downturn. More people are opting to save money by eating at home instead of going out, and business travelers are tending to cut back on expense account spending. This means we've had to focus even greater efforts in small and mid-sized independent wine shops throughout the country, where our brand was built, and where the hand sell by salespeople who know us and appreciate our wines is alive and well.
Luxist: What is your favorite St. Francis wine?
Silva: St. Francis Sonoma County "Old Vines" Zinfandel is my all time favorite wine. It has been written that to make wine in Sonoma is to stand in the presence of the past. No where is winegrowing and winemaking more connected between present and past than with "Old Vines" Zinfandel, made with grapes from vines planted in Sonoma as far back as the 1880s. That these non-irrigated, dry farmed vines are still productive today is both a local and cultural phenomenon. No wine captures the essence of both Sonoma farming and winemaking like our "Old Vines" Zinfandel.
It has been said that to make wine in Sonoma is to stand in the presence of the past. I am a fifth generation native of Sonoma County. My grandfather was a dairy farmer and was born in a farm house in the Sonoma Mountains in 1911, about the same time that Jack London, who lived about four miles from that farm house, was writing about the "dreams and mysteries" of the people who lived in Sonoma. In 1911 those dreams and mysteries were about farming-farming defined our culture, our values, certainly our work ethic. Despite all the changes over the past 100 years, that is still the case today. For us, it is very much about farming, and we still see ourselves as farmers who make wine. I have long believed that the most successful businesses and their employees are "about something." We are certainly about quality, but we are also very much about Sonoma and about farming, which is why all our wines come from 100% hand-picked, Sonoma County grapes. That is who we have always been.
Silva: We started picking almost all of our Chardonnay at night beginning about three years ago. We floodlight the vineyards and start hand-picking around midnight-it makes each vineyard look like a movie set. By doing this, the hand-picked Chardonnay grapes arrive at our Crush Pad by 5:00 am and our cold to the touch, usually around 42 degrees. By arriving in the cold, dark of night, the cold Chardonnay grapes have not been compromised by heat or light-they haven't sat in the sun cooking. By crushing the grapes cold, we have been able to hold onto not only those wonderful, rich flavors and aromas, but the bracing acid levels that provide wonderful balance in our Chardonnay. This crisp acidity is particularly evident in our Estate Chardonnay vineyard below the fog line in the Russian River Valley. Night picking our Chardonnay is an example of putting time and money into better quality for the long term success of the brand. Most people who taste our Chardonnay agree.
Luxist: Describe how you sell the bottom ten percent of your wines to the bulk market. Why do you do that and what is it used for?
Silva: This is one of our single most effective quality measures. After constant tasting and re-tasting protocol in our barrel room, our winemaking team is required to designate the least desirable ten percent, per varietal, per vintage, of all wines in our barrel room. "What is the least desirable ten percent of the '04 Merlot, and the '04 Chardonnay, and so forth." We then take that ten percent and sell it, either to other wineries or on the bulk market, even if we sometimes do so at a loss-but the bottom line is that we remove it from the Winery before we begin blending. By removing all mediocre or undesirable wine from our Winery before composing our final blends, the result is that each finished wine contains only blending components that our winemaking team is enthusiastic about. We will never "lose mediocre wine in a blend." Rather, we will sell it so that the only wines we blend are outstanding and worthy of the St. Francis name. It is not an inexpensive practice, but most people who taste our wines understand.
Luxist: Tell us about the report cards you issue to growers. Can you discuss the importance of quality and how that is best communicated with suppliers?
Silva: In 2003 we met individually with each of our grape growers, at that time we had just over 70. We told them of our plan to issue letter grade, quality based report cards to each of our growers. Grapes that did not receive an "A" grade or "A minus with promise of reaching an A" in both the 2003 and 2004 harvests would no longer be a part of our program. That took us from just over 70 grape growers in January 2003 to about 35 grape growers today-entirely on the basis of grape quality. In other words, we canceled grape contracts with about half of our grape growers because they didn't earn an A grade. As part of this Grower Report Card process, we revised all of our existing grape contracts to include higher Vineyard quality protocol, and grapes that are grown in cooperation between grower and Winery but to Winery's quality specifications. We also put our winemaking team in charge of grower relations-so there is no middle man between grape growing and winemaking. Our winemaker spend as much time in the vineyards specifying their exact grape quality needs in each vineyard. And months before each harvest, we're dropping fruit on the ground in each of our estate vineyards, which increases richness and concentration of the remaining fruit. Our estate vineyards are finally mature, well cropped, and producing most of the grapes we use.
The result of all this is that we now have fewer grapes, but I know for a fact that we have better grapes. Any chef or jeweler will tell you that the final product will be far superior if you start with outstanding raw materials. The same has always been true of wine-and that's what we're practicing in our vineyards each day.
Luxist: What strategies do you employ with your distributors?
Silva: A key component of our sales strategy is to ensure that every one of our sales people have heard and tasted the specifics of our quality story. I remind them how important their job is and how our mutual success depends upon them believing in the product we have asked them to sell. So we discuss and taste our quality at every one of my sales meeting across the country. No graphics, no splashy charts, no PowerPoint. Just bottles of St. Francis, wine glasses, a corkscrew, and a sip by sip discussion of what they are tasting as a result of our specific quality enhancement efforts in the vineyards, on the crush pad, and in the cellar. No green flavors in the Cab we are tasting? That's because of our fruit dropping and leaf pulling efforts under our farming plan that gives us maximum ripeness and structure. Creaminess as well as balanced acidity in our Chardonnay-that's because we night pick these grapes.
We have some terrific, talented, experienced sales people across the country. They have taught me that there are two critical moments of truth between a winery and a customer. The first is when the customer sees the bottle on a store shelf or wine list and chooses to buy it over other wines, and the second is when the customer actually tastes and enjoys the wine. Word of mouth, brand familiarity, ratings, price, and other issues often come in to play, but a sales person who has tasted, understands, and believes in that bottle of wine will stand behind that bottle and get it in front of customers, either on a wine list or on a retail shelf-so that the customer's decision to buy that bottle-the first moment of truth-becomes more likely. The second moment of truth, when the customer tastes and enjoys the wine, is what creates the relationship between the customer and the Winery. That's our job, and the relationship will be a long one if we make sure its all about quality.
Luxist: What is the future of the US wine industry?
Silva: Cream always rises to the top, and we will continue to see that in the US wine industry.
Luxist: What is in the future for St. Francis?
Silva: We are going to continue to treat each vintage as a transition year toward higher quality. More night picking, more hand sorting tables, better barrels, and even greater quality efforts in our vineyards. We are also going to continue to move in the direction Green Practices. We are proud of the fact that back in 2004, we were the first in Sonoma Valley to install a 457 kw solar energy system on the roof of our cellar and barrel room. In the summer we get up to 40% of our Winery's total energy needs from the sun, enough energy to power 450 homes. In the late 1990s we worked with the Army Corps of Engineers to develop and designate 40 acres on our Lagomarsino Estate Vineyard as protected wetlands. We received the 2009 "Best Practices Award" from the Business Environmental Alliance of Sonoma County "[i]n recognition of environmentally sound business practices." We are now working with lighter glass, cleaner operations, and more stream and creek friendly water practices to show even greater environmental leadership in the years ahead.
Luxist: How has St. Francis fared during the recession?
Silva: Our sales have actually increased over the past 24 months. For example, our Sonoma County Cabernet Sauvignon was just named one of the 20 most popular US restaurant Cabernets [in Wine & Spirits Magazine's annual restaurant poll]. I attribute this to two things, quality and value. I don't think wine consumers are concerned only with price. I travel nearly 100K miles per year and what I see is concern about value, which is different than price. Value can be had across the pricing spectrum. Make a consistently great bottle of wine and price it a few bucks less than it is worth and that wine will sell. That has always been our premise at St. Francis, and our Winery is doing pretty well in a difficult economy for precisely that reason.
Luxist: What is the best decision you've made guiding the winery through the downturn?
Silva: That quality is the ball you cannot take your eye off of, all the more so in a difficult economic environment. We have made the decision to invest time, expertise and capital into quality, at a time when other companies are cutting corners. Better grapes that are 100% hand-picked in Sonoma, hand-sorting tables, smaller tanks, French oak barrels, night picking our Chardonnay....most people who purchase St. Francis wines won't hear me talk about our passion or our enhanced quality efforts-but they will taste it. And they will like what they taste as a result. I have never been more convinced of that, and it inspires us greatly.
Luxist: Can you talk about the market? Where have consumers cut back?
Silva: Proper channel management has taken on additional importance in the changing economic landscape. One area where we have seen significant pullback is in restaurant wine purchases during the economic downturn. More people are opting to save money by eating at home instead of going out, and business travelers are tending to cut back on expense account spending. This means we've had to focus even greater efforts in small and mid-sized independent wine shops throughout the country, where our brand was built, and where the hand sell by salespeople who know us and appreciate our wines is alive and well.
Luxist: What is your favorite St. Francis wine?
Silva: St. Francis Sonoma County "Old Vines" Zinfandel is my all time favorite wine. It has been written that to make wine in Sonoma is to stand in the presence of the past. No where is winegrowing and winemaking more connected between present and past than with "Old Vines" Zinfandel, made with grapes from vines planted in Sonoma as far back as the 1880s. That these non-irrigated, dry farmed vines are still productive today is both a local and cultural phenomenon. No wine captures the essence of both Sonoma farming and winemaking like our "Old Vines" Zinfandel.
It has been said that to make wine in Sonoma is to stand in the presence of the past. I am a fifth generation native of Sonoma County. My grandfather was a dairy farmer and was born in a farm house in the Sonoma Mountains in 1911, about the same time that Jack London, who lived about four miles from that farm house, was writing about the "dreams and mysteries" of the people who lived in Sonoma. In 1911 those dreams and mysteries were about farming-farming defined our culture, our values, certainly our work ethic. Despite all the changes over the past 100 years, that is still the case today. For us, it is very much about farming, and we still see ourselves as farmers who make wine. I have long believed that the most successful businesses and their employees are "about something." We are certainly about quality, but we are also very much about Sonoma and about farming, which is why all our wines come from 100% hand-picked, Sonoma County grapes. That is who we have always been.
