Quality Driven Co-op w/ Roman Horvath MW, Domäne Wachau

Co-operative wineries, popular throughout Europe, are generally associated with higher volume, lower quality wines. Not at Domäne Wachau, where Winery Director Roman Horvath MW has been leading the quality vision for its family growers to great success. Roman discusses how co-ops work, how they pay their growers to get to zero income, and how managing a co-op is different from other companies. Detailed Show Notes: Roman’s backgroundHe started in wine in his mid-20sWorked in restaurants, wine internships in Chile & France was a buyer/importer in AustriaBeen w/ Domäne Wachau for 17 yearsCo-op definitionProduces wine from grapes from grower-membersEvery member has a share in the companyEach grower manages its own vineyardCo-ops in Europe - Spain/France/Italy - >50% of production, Germany ~33%, Austria - ~15-20%Most co-ops are volume-driven with some exceptionsMost were established in the 1920-1930s to balance the power of small farmers with strong retailersSince the 1990s, the increase in wine quality worldwide has left many co-ops behind as they are too large and volume-drivenCrucial to separate grower function from management, which needs professional expertiseDomäne Wachau~400ha (~1,000 acres)~250 family growers (each family may have multiple owners)Avg family ~1-2 ha, largest 8-10ha, 3-4ha+ for full-time growersSmall vineyards led to a deep specialization in the siteGrowers must follow the co-op’s quality schemesPrecise picking plan for all growersUp to 70-80 different wines, ~3M bottles/year (~250k cases)Domäne Wachau vs. other co-opsGrowers can have some of their own production; most co-ops are “all in or all out”Push for quality - driven by a strong vision, community, and communication with growersThe goal is to increase the salary/income of growersCo-op managementVery democratic - each grower votes in the General Assembly for the board of directors (8-10)Each grower has one vote, not weighted by vineyard sizeManagement driven by the management teamNot profit-drivenPays growers technically in €/kg of grapes, but with a complex system (e.g., higher payments for terraces, hand work, Riesling vs. Gruner, sustainable/organic farming)Payment split over the year every other monthGoal: pay as much as possible for grapes to get to $0 profitOption to leave the co-op, generally on 3-5 year minimum contractsAnyone can join but have strict quality qualificationsTry to increase wine pricing every year (for quality positioning and inflation)In small harvests, have the balance sheet to balance payments between years Hosted on Acast. See acast.com/privacy for more information.