In this episode, we hear from Amy Prosenjak, CEO of A to Z Wine Works. Amy has some incredible insights to share around supply chain management and retail demands. Amy and her team are doing an incredible job taking it day by day and ensuring her customers are getting what they need and when they need it while keeping her team members safe. I really enjoyed this chat and hope you do too.
In this episode, we hear from Amy Prosenjak, CEO of A to Z Wine Works. Amy has some incredible insights to share around supply chain management and retail demands. Amy and her team are doing an incredible job taking it day by day and ensuring her customers are getting what they need and when they need it while keeping her team members safe. I really enjoyed this chat and hope you do too.
spk_0: 0:08
Well, everybody. It's Ryan Lee with Make it a great day. The power of positivity. Thank you so much for joining us again. I am your host Ryan Lee, president and CEO of CBT Nuggets of great online training company, and have been really, really enjoying bringing some new podcast to form where I've been spending some time interviewing some great leaders around the country and the globe about how they're dealing with the pandemic. And this next team member that I get a chance to interview is an incredible leader. This Amy Pros and Jack, CEO of a dizzy wine works and a bee's got some great insights to share. So let's jump right in everybody. Welcome to make it a great day. The power of positivity. Riley Coming to you live and direct. So excited to be talking to an amazing leader and a great friend of mine. Miss Amy Pros and Jack, who is the CEO of a dizzy wine, works. Um, a dizzy for those of you that don't know that she's gonna tell you is an incredible company and is doing some amazing things in our community and really bring it. I think right now today Sound Ah, good relief out there in this wonderful, stressful environment. So, Amy, welcome. Thanks so much for joining.
spk_1: 1:17
Thanks, Ryan. Thanks for having me.
spk_0: 1:19
Perfect. Well, Amy kicked it off. Love it. Obviously, we don't wind, but I would love just hear a little bit about a dizzy and kind of who you guys are, how you became a dizzy and just that journey
spk_1: 1:32
a dizzy We just are celebrating our 18th birthday coming up this summer So we're almost legal drinking age. It's a family owned company that was formed around a kitchen table by two families that really wanted to do something different and have a wine that waas more affordable for folks. And so all the easy winds have always been about $20 or under, and that's still true today. So were a lot larger. We started making about 2600 cases back then, and today we make about 400,000 cases. So there's 12 bottles of wine in each of those cases, and of the business has become more complex over time. But it's really still the same strategy. Thio. Our tagline is to create the great, the highest quality wine for the greatest sustainable value. And we want to be a company that combines commerce with confidence. So that's that's our That's our stick. That's what we're doing out there in the world,
spk_0: 2:31
which is awesome. And I'm obviously I know you well is a great friend and I hear a little Midwest in that accent and I would love Thio. Here is a Midwestern myself here, your journey of kind of what brought you to a dizzy and really what keeps you going every single day in that amazing company.
spk_1: 2:48
So I have had an unusual path into wine, as most people do. I grew up in Ohio and went to college there in Ohio West Land Go bishops and we started working in the furniture business I worked with limited some big companies. They're in Columbus, and, um, we just enjoyed wine as consumers. And so we have a keg greater first, and then we graduated with but the line fridge. And so we just kind of evolved as consumers over time. And we had been to Napa to Italy to visit these amazing wine regions. And so one day my hubby was online looking at a website called line jobs dot com, and you, too, could be the CEO winery to supply on wine. John's dot com and a Dizzy was just in the process of buying Rex, Ill. Which is another winery here in Oregon, Um, or the Legacy whiner that's been around for about 36 years. And so they were looking for a CFO at the time, and I really just sent my resume on a whim. I was ready for an adventure, and wind sounded fascinating and intriguing and romantic and sexy and all the things that people kind of associate with fine. And so the, um, one of the owners, Bill Hatcher, called me and he said, Do you understand cost accounting? And I said, Yes, that's what I do for a $1,000,000,000 furniture company. I'm the director of inventory control, and I definitely understand cost accountant and you said, Well, that's really what managing line operations is about. And so I came out to Oregon to interview, and we just hit it off. Here we are, about 13.5 years later, and I still understand cost accounting, and that's really the you know, the crux of making sure you understand what's going on behind the scenes at the business and that, of course, I've learned all the other amazing things that go into the wine business since then.
spk_0: 4:41
Perfect. And I know you would not say this, but for those of us who don't understand and I know you talked about the 400,000 you guys are the largest wine producer, an organ, correct.
spk_1: 4:50
We are one of the largest. We have a competitor that puts wine in cans that's been creeping up on our numbers there. So you were one of the largest today, says most wineries in Oregon. There's a lot of wineries in Oregon that are kind of at that 3000 case level. That's really the bread and butter of the beautiful organ wine country where you can go around and got all these great tasty rooms. There's some in that 10 to 50,000 cases, and then there's a few of us that were kind of 100,000 more so
spk_0: 5:20
which is awesome, and I definitely know from drinking and experience in the busy brand and the Rexall brand and other things that you guys were affiliated with, one and only is it awesome? But two, It's affordable and it's found all over the country. And I know a lot of ways all over the world on, and I think that's a really cool thing, because I think your brain is able to help people. All that are going through. This is kind of something that that brings us together. And with that from some other chat, you know, we've talked that there might be some people buying some wine, but that doesn't mean that you're not having challenges in having some really unique opportunities present themselves every day. And so I'd love to hear a little bit about what it's like. The run, one of the largest wineries during a time like this and how you guys were coping, um, with the current pandemic.
spk_1: 6:03
It's just been such an interesting time. But I know all of your listeners are feeling the same thing. It's it's up and down kind of every day, and it feels like this has been going on for months and months, and it's really, really been weeks as first, the actual crisis period. So you know, it's it's kind of two different pieces of the puzzle you mentioned that our wine is available around the country and 13 export countries and which has really been what has been keeping us going. So about 80% of all of our a dizzy wine is sold in big box retailers. So places, um, grocery store, Costco, total wine so forth. And so all of that businesses up, Um, I heard a stat that normally this time of year A. You know Fred Meyer store will take 1 to 2 trucks semi trucks of mixed product a day to stock their shelves. And during what was going on in the beginning, really, they were taking 7 to 8 trucks a day of mixed products and just keep this the shelves close to Stockton. So it was like Christmas Eve over and over and over again for these incredible employees at all these retailers that have been keeping it going, and so that fueled our sales. So we had to really focus on our distribution and keeping our warehouse going. We work with a great partner in Salem, Oregon, called Northwest Distribution and Storage, and they were able to keep all of that one shipping across the country. We worked with all of our distributors in all of our 50 states to talk about how to stay in stock and how much one they should order. And they had to do a lot of overriding of their systems that normally are looking at current run rates and what would normally happen in March or April. And so we had to really all work together to make sure that we could get the right amount of wine and to the right places. So that's kind of the distribution side, and that's been the most kind of tricky to stay on top of. But fortunately, because sales are up, we've had those opportunities to solve a ZA business internally at the winery. It's been very emotional, just like everybody else I think is experiencing. We, of course, went into the shelter in place, and so we you know, But everybody at home working that we could. We close the operations for three weeks to just make sure everybody was safe and healthy with their families and give them time to kind of no figure out what was going on and really figure out how we would come back as a manufacturer in these new times with different setups, different processes and just thinking about how we would handle all of that once people were back at the winery. So we learned how to use Zoom and all these technologies really quickly. We did lots of I usually haven't all staff meeting with all 62 of our on site employees, and so of course, we couldn't do that. So we did that through Zoom and just trying to connect with everybody. I'm definitely a manager by walking around and so not being able to see everybody each day and have those kind of quick, 30 seconds, 62nd conversations. That's take a lot longer to happen on the phone, but I've been committed to trying to make that happen. So I've been burning up the cell phone minutes and zoom in. It's just trying to stay connected with everybody. So, um, we're just trying to keep it together. We're gonna get through it together. That's
spk_0: 9:22
that's awesome. And obviously you guys are Harvest isn't yet, but it's still making sure that you're preparing for that and then be curious, too. I know you guys buy and leverage a lot of local small business suppliers of grapes throughout the state in three other places. And how those relationships I'm going and what have you been hearing? And, you know, he probably can't necessary go into their property right now in check and talk and see things like that. I'd be curious to know how that part has changed as well.
spk_1: 9:47
Your mother nature doesn't care that this is going on. So the grapes were still growing, which is great. So the 2020 minutes just is moving right along. We had fun break and all the little buds air coming out, and it's just fun to see Our viticulture list has been sending us some pictures to keep everybody focused on. What we all do is that yeah, the grapes are coming. So it's only about 100 and 50 days away. So we are definitely thankful that this didn't hit right during harvest. That would have been way more disruptive to our manufacturing environment. It's giving us a little bit of lead time to think that through. I think it will be different. All of this social distancing thes policies, I believe, will still be in place at that point in September and October. And so we're thinking through now how we will accomplish that. We normally have, like 8 to 10 interns from around the world that have worked hardest all over the world. They come to a dizzy to work harvest. We're not sure if we can accomplish that in the share with people traveling. So we're thinking through all that we are still visiting our sights from weeks. So we buy from about 50 incredible growers across the whole state of organ Wi Fi from Hood River all the way down to Ashland. And so because you can travel by yourself in a car and get to the site and you're outside so we're not interacting with the growers right now, but we're able to go and check on what's happening in the vineyards, and then we can communicate. Um, you know, be a phone and zoom and so forth about it. So we're trying to stay on top of it because it's happening as as we speak. So
spk_0: 11:21
totally so as you mentioned Zoom and you mentioned the 62 team members. You know, what are some things that surprised you the most with how your team is cope with this. And I know you mentioned being on the phone and trying to still keep that human connection would love. If you have any stories or just some things that really impressed with your teeth,
spk_1: 11:36
you have two things really come to mind. So we have 62 employees up at the winery in our vineyard sites, and then we have another 12 employees that our sales team across the country. And so they're used to working remotely, and they travel for a living. So they're, of course, home at this point, but they're used to working from home. And so we've really been trying to lean in on them to understand, like, what are your protocols? How do you do it? And so we've had a couple of our sales team members, little guest speakers on some of our other departmental meetings to give us some tips about how did they do this? And how did this happen today? Normally, structure there day and both stay healthy mentally and physically, but also get all their work done when they're in front of the computer screen and how they set up their office and avoid their kids. That are running in and, um, you know, asking for lunch. I think so would That's been fun. Thio tap into their resource is and really, the thing that impressed me the most is just how adaptable our team has been. I mean, trying to move some of our direct sales online. We had a wind flow party scheduled in March. That, of course, had to be postponed. So, you know, all the seven were getting all of these things online and offering things to her, um, are one club members and trying to just understand what are they interested in? And just how quickly that all has been forced happened. Another thing that pops into mind we have been talking about in the finance Department. Could we be paper lists and 2020? How could that happen? And we kind of thought it through and started to make plans. Well, guess what? We had to become paperless kind of overnight. Um, so that really has, um, impressed me that everybody has just been so willing to pitch in. We had to new colleagues start during this time that we're already planned to start. And so that's just been a weird experience for them, of course, of how they've been on boarding and learning how to do payroll remotely. But people you've never met, um so just really appreciate everybody's willing this over these last couple weeks, it's everyone's put in a lot of effort.
spk_0: 13:33
That's awesome. I'm always curious. I'm been asked everybody this. You know what? Have you really learned about yourself during this? I mean, I I definitely can say this has really been a very interesting time of self reflection. And I'm in a building right now where they're starving like 120 people. And it's just me and I. I know you're feeling that same stuff, Um, and just give me a lot of time to think What are some things that really change for you are giving you different perspective.
spk_1: 13:56
One of the things that I really have appreciated is that, you know, I'm a big believer in building relationships with folks that you do business with. You had mentioned some of our kind of smaller local suppliers, people. We print our labels with people where we do our warehousing in Salem and so forth. And if you didn't have that relationship, I've always mentored people. I ran a big account stable in accounts receivable Team one of my 10 years, and my my quote to people was always know the dog's name. Know what the kid's name is? No. Whether interested in what book were they reading last time? Because if you're asking for money, it needs to be a relationship. And so when they're looking through their list of payables, it's like, Ooh, uh, okay, that nice person that knew my dog's name. I do think that happens in companies. And so if you didn't know the dog's name before this crisis happened, it's really hard to learn it now, right? It's hard to get people's attention. They're they're having millions of decisions that need to be made quickly. And so when your phone call comes in and you want them to pick up your call, and so I've really appreciated that the the relationships that I've billed over these years with a dizzy and then also my colleagues, I think that's really been out one of our strengths, for sure. Um, one of the things I've learned about myself is that if I'm not forced to, I don't get up, walk around very much when I'm just at home. And so I've really been struggling myself on a physical side of things of keeping that going. I'm used to being in a routine and go into a gym on the way to work and all these things. And since that's not happening, that's been really hard for me personally. So I've been trying trying some different tactics to to keep that going because I totally believe that that physical held this part of my mental health. So definitely had a few few low moments that my team members have had to help me get through. So
spk_0: 15:42
totally. I think that's great insight. You know, it's funny, like we always talk about, whether it's annuity or whether it's something that you've planted and you watch it grow. It really is, uh, the time in the effort that you put in that sometimes you don't see that, then comes really truly to fruition in times like these, and I'm being ableto build those relationships and built have those just the strength during times like this. I think it's great perspective, Um and obviously like you said, I think that physical nous for all of us. I can speak for myself. You know, I'm trying to do a few more walks or just something, but I definitely know. I also need that and then used to go into a gym and having that take away. You can really feel that tension building me like a man. And I got to get out and release a little bit here and there. Um, last question, Amy, um and you kind of touched on a little bit with some of the stuff with finance of going paperless, but again is presented, I think, with an opportunity, You know me. I never like to see challenges, but what are you thinking coming out of this? About how a dizzy might change Or what are some winds that are potential? I know you mentioned something. Stuff, the wine club and things like that. Be curious to understand, kind of. Or you think maybe a dizzy after pandemic is that you would have probably never been before if you didn't have to experience it.
spk_1: 16:54
So it's a really good question. It's a hard one. We were just talking about that we've been doing. I have four incredible founders as I mentioned that founded a disease. So we've been having a call every day, the end of the day, just checking in on each other and just see how things were going, and especially when we're making quick decisions. But we were We were talking about that and, you know, some of it feels a little too soon to tell because we're just We're not out of it yet. And like, what are the trends gonna be and how well things of all and how will that happen? So I think a lot of it will just have to do with how the economy responds. Um, you know, is our will our price point still be something that feels economical to people? I mean, $20 is still a lot to pay for a follow up wine with your dinner for some people. And I understand that, and so, you know, will we have to adjust that? How would that then affect the whole kind of supply chain structure that we've built? You know, it feels a little bit too soon to tell. We've always been one to poke and prod and ask questions. Lots of us have liberal arts degrees So you know what? What innovation needs to happen is package size. Need to change. Does is our price point. Need to change somehow. I mean, what what else is out there? I mean, does the luxury wine market really exist for Rex Ill? Um, and our one club. I mean, it'll be interesting to see what consumers tell us that that they want. And so wine, you know, it's such a long cycle because we're growing the 2020 vintage. Right now we're bottling the 2019. We're selling the 2017 and 2018 villages, so it takes a long time. So those changes to happen And so we way need to make sure we make changes in quick enough succession that we can affect something. But, you know, we pretty much already have our wine in bottle that we would sell next year. So we're already paying all this all those costs. So it'll it'll be a challenge to see how we can innovate and where we will. So I don't have a great answer for that. Other than were thinking about it and talking about it, Um and really that consumers are gonna tell are gonna choose.
spk_0: 19:01
No, and that's a great point. And I would say, though, even going paperless right gives you flexibility like you had mentioned. And I also think, um, how to engage digitally your wine club. You know, I can speak for myself. I Percy, I'm biased. But I love wine, and I'm a big fan of a busy and Rex Hill and I have found myself probably actually drinking more wine at home because there's a little bit less to Dio and it's give me a different appreciation. And so I think, um, even though I can't get their toe be around the people, there's enough of that memory case that that's still there. And so it would be interesting how that digital, you know, plays in. And, you know, they're winemaker dinners where it's on a scream, you know, versus physically around a table. But yet you're all are still enjoying great food that you've created, and also incredible wine. Do you guys have built? So I think time will tell. But I I believe in your guys, his brand and I believe in your product. I think people will still find value. Um, last, but certainly not least As you know, I love quotes, and I'm always curious to hear is their quotas. There's something out there that maybe you go back to a times and and something that fills you up if you have one. What would that be?
spk_1: 20:08
There's so many. This is like choosing your favorite book. I don't know if I can choose my favorite quote. I mean, that I was looking, I keep a little book of quotes. And so I was looking through that. And, you know, some of the things out there that were in my book that reminded me of things that, you know, speak even when your voice trembles is something that I think about all the time, especially right now. And I don't know what to say to 72 people on the zoom golf, you know, there is everything gonna be okay. Well, I'm gonna tell you whether whether my voice starts to tremble in or not. Um, you know, you earn it. You didn't win it. Um, there's just too many Leadership is a choice, not a rank and heart counts, not head counts, but one that really six with me. So Coach pop from the San Antonio Spurs is someone that I really admire. And he has one quote in the whole Spurs facility practice facility in San Antonio. And it's by a Russian writer, because that's what Coach FOBBs studied so little fun back for you. But so when nothing seems to help, I go and look at a stone cutter hammering away at his rock perhaps 100 times without as much as a crack showing in it. It had the 101st blow. It will split into two, and I know it was not that blow that did it, but all that had gone before. So that's something that I think we just gotta keep at this on the Rockets, coach Bob says. And we gotta stick, stick together and get through this together as a a dizzy company and as our community and as a greater nation and world. So I wish everybody look, it's it's tough out there, so
spk_0: 21:46
I could not agree more, and I think the more we come together and the more gratitude and things we find from all of this, I hope that everyone feels that and sees that and canoes to share in that I'm Amy. It's been an absolute pleasure. Thank you so much for taking the time to be on. And I think people really get a lot out of other time we spent today, so thank you.
spk_1: 22:03
Thanks, Ryan. I always trend up when I talk to you. So appreciate your positivity.
spk_0: 22:08
Thank you.