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Not for Sale
Written By: Davis Picklesimer - Highlands Wine Shoppe | Issue: 2018/12 - December
The odds are not in favor of a family-owned winery making it to future generations. Only 30 percent of wineries will pass to the second generation and only two percent will transition to the third generation, according to Forbes.
Don’t get over-confident with your own wealth, you only have an eight percent chance of passing wealth past the third generation. We all have something to learn from the Bogle family!
Bogle Vineyards has grown their wine production to be the 11th largest in the US, with close to 2.5 million cases a year, while maintaining quality and price. Its Old Vine Zin has been named Number One for Top 100 Best Buys for 2018 in Wine Enthusiast).
This hasn’t been an easy road for the third generation, with the sudden death of the Grandfather in 1968, Father dying in 1997 at age 45, and their Mother dying in 2011 at 59.
Jody Bogle states, “In 1997, there was no time for succession planning. We had to circle the wagons to help Mom (Patty). I left my teaching job to return home and help.”
Jody’s brother, Warren, also was there to help.
After a discussion with Jody, these are a few “lessons learned” since her Father’s death in 1997.
First, during the critical times, self-interest was set aside for the betterment of the whole family. Entitlement was not tolerated.
Second, a core team of advisors and employees were established to advise the family.
“We called these ‘Kitchen Table Meetings’ and my Mother would listen because she valued everyone’s opinion,” Jody says.
Third, a common focus for the winery was established based on “wine quality and production.” This put everyone on the same page.
Fourth, Jody and her siblings were allowed to find their fit inside the business. Warren has leadership qualities like his Father, he is President; Ryan is the numbers person like the Mom, he is CFO; Jody exhibits the social side of her Father and is Head of Public Relations. Even with these different titles, each of their decision-making votes carry equal weight. This was illustrated when Patty was sick in 2009 and each of the children came to her separately and asked not to sell the winery. Collectively, they came together with a plan to grow the winery instead of taking the easy offers for sale.
In closing, a Father’s work ethic and a Mother’s willingness to listen and encourage her children to work from their strengths allowed a next generation to excel.
May our next glass of wine be together.
