Chapter 80: Additional Expansion (1)
TL: Hanguk
It was a morning in late November 2005, four days before Cerasia's launch.
The aging cellar at Redwood Winery was unusually busy. The footsteps of staff bustling about with bottling preparations never stopped, and a faint cherry aroma drifted through the air.
Off to one side, on a makeshift conference table next to the fermentation room, a large blueprint lay spread out.
"You said you currently have a total of fourteen stainless steel fermentation tanks, correct?"
A solidly built man leaned over the table and asked.
With the sleeves of his deep navy shirt rolled up, he was Mark Spencer, an equipment engineer. A UC Davis graduate with so much field experience that it was said most of the mid-sized wineries in Napa Valley had passed through his hands.
"Yes. Ten at 5,000 liters, and four at 10,000 liters."
When I answered, Mark unfolded the blueprint and drew a mark with his pen.
"That's unusual. Your winery setup is pretty big relative to the farm size, and you want to expand even further?"
"We do a lot of different things. Cabernet, Pinot Noir, and also... cherry wine."
"Ah, I see. Then additional expansion is necessary. I noticed the aging tank equipment is quite something. I take it the new equipment is coming in at the same level?"
"Yes."
"And the additional tanks would be...?"
"This time, four at 5,000 liters and four at 10,000 liters."
Honestly, I didn't strictly need to expand right away. If supply ran short, there was no reason I couldn't age the wine through a custom crush arrangement. The problem was that wine made that way wouldn't fundamentally be produced under the optimal conditions I was aiming for.
That was why I kept expanding the winery's facilities whenever money came in. On top of that, an enormous amount of money was flowing in this time around, leaving the winery awash with cash, and one more wave was still to come.
That would be Cerasia 2005, made from 100 tons of cherries, with 80,000 bottles, or 6,600 cases, piling up in the warehouse.
If it all sold, it would bring in over $1.4 million, and even after giving Frederick 30%, nearly $1 million would be left.
In a situation like this, if not to expand the winery, where else would I spend the money?
"60,000 liters, huh..."
Mark nodded and pointed to an empty space on the blueprint with the tip of his pen.
"This area could be set up as a new line. The problem is the electricity. The existing electrical panel can't handle running everything at once. The cooling line will have to be newly run too."
I stared intently at the paper, at the tangle of complicated piping and tank lines intertwined across it.
"How much would it cost to expand the cooling line?"
"Roughly $150,000. If you include replacing the power supply equipment, you should budget around $200,000."
"Hmm..."
Mark traced his finger along the blueprint, shifting his gaze toward the aging warehouse.
"The aging cellar will need to be expanded too, right?"
"Of course."
Mark stood up and pulled out a laser distance measurer. After measuring the walls of the aging cellar, he showed me the laptop screen and said,
"This zone right now is about 2,600 square feet. If we expand it by 400, you can stack up to 300 additional barrels. With a three-tier rack system, even at this height we can fit up to 1,000 barrels."
"What about insulation? Indoor temperatures rise quite a bit in summer."
"We can use double polyurethane insulation and a constant-temperature control system. I'll design it to stay within ±1.5 degrees, which is far more stable than what you have now."
"Good. If we include the eight tanks, cooling line, power equipment, and expansion of the aging cellar, what's the total going to be?"
Mark tapped away at his calculator and answered,
"I'd say somewhere around $900,000. You'll want to set aside an extra 10% or so in contingency. Four months from design to construction. The new line should be up and running by March next year."
"Good. As soon as the Cerasia launch wraps up, let's break ground right away. It has to be finished before next year's Pinot Noir harvest."
"Smart call."
Mark smiled. Then he looked at me, tilted his head, and said,
"I understand you're still a student... but I've heard the rumors about Echelon and Sylphide. Impressive. I'm genuinely curious how much bigger Redwood is going to get from here."
"Haha, thank you. I just got lucky."
After the meeting, the two of us walked slowly through the aging cellar. Along one wall, the Cerasia bottling line was turning at a steady pace. The deep cherry-red wine filled bottle after bottle, shimmering quietly.
"When does this launch?"
"This Friday."
"Mind if I smell it?"
"Go ahead."
Mark picked up a bottle and brought it to his nose.
"Cherry wine, huh... crisp, but oddly refined. I was expecting sweetness, but it's actually dry."
"We aimed for something closer to a red grape wine. The goal was to establish it as a dinner wine, not a dessert wine."
"Oh ho. With that kind of sensibility, no wonder you turned out Echelon and Sylphide too. I'd love to try a bottle myself someday if I get the chance."
He fixed me with a steady gaze, the longing in his eyes radiating powerfully.
"Sure, I'll set one aside for you."
"Hahaha! Thank you kindly. I was planning on giving it my best anyway, but now I'll deliver results beyond what I'm capable of. It'll run stably for at least ten years, no maintenance worries. And by that time, Redwood will be standing at the heart of Napa Valley."
"I'm hoping so."
I was curious too. I wondered how things would change ten years from now.
Early December, Union Square, San Francisco.
Red ribbons and gold ornaments hung across the glass façade of Macy's Department Store. The kind of year-end atmosphere that somehow lifted everyone's spirits had already settled over the city, and the faces of the people stepping inside the department store were full of cheer.
The central hall of the gourmet section on the first floor, that was today's stage.
A large banner hanging up above caught the eye.
Cerasia 2005 Official Launch
On a table draped in cherry-red cloth, bottles of Cerasia were lined up neatly. Each wine bottle bore a red label that shimmered softly.
Beneath it stood a gold placard engraved with the words "Holiday Special 10% Off – Today Only".
An emcee stepped out from the crowd with a glass in hand. The middle-aged man in a suit took the microphone at center stage and announced in a bright voice,
"Hello, everyone. Today at Macy's, for Holiday Gourmet Week, we're introducing a brand-new wine that is the pride of California. Crafted together by Napa Valley's Redwood Winery and the Brentwood cherry farm, here is the cherry wine! Cerasia 2005!"
Department store customers who had been watching absentmindedly as they passed by clapped almost on reflex. Under the lights, the bottles sparkled, and the table set with Cerasia amid the red cherry decorations looked almost like a single Christmas display.
"For those who purchase Cerasia 2005 today, we're providing a Holiday Gift Set with two exclusive glasses, along with a special packaging set. Quantities are limited!"
And behind this event, slightly apart from the crowd, I was watching alongside Frederick and Chloe.
"I had no idea people would take such an interest in cherry wine."
Knowing full well that these people weren't interested because they actually understood Cerasia, I spoke casually.
"More than that, it seems Macy's really took a liking to Cerasia. John Anderson seems to have a decent amount of business sense too. Looks like he planned the event to target people who want to enjoy a cherry wine during the holidays, and since it's the holiday season, people are clearly responding well."
Chloe gazed at the tasting station, where customers with glasses stood in line, and nodded.
"Dad, look over there. More and more people keep coming."
Just as she said, people kept lining up one after another in front of the tasting station, and the small paper cups in their hands were being filled with deep purple wine.
"Hmm, this is cherry wine?"
"Wow, the aroma is smooth and fresh. Not sweet at all."
"It's almost like a Pinot Noir."
The Macy's wine buyer, who had been chatting with John Anderson at the next table over, came over to me.
"The response is good. I expected as much, but the ratio of purchases to tastings isn't bad at all."
I wasn't sure what he meant at first, but once I stepped over to the table next to the tasting station and saw the people paying for wine, I understood.
"Looks like public perception of cherry wine isn't bad."
"That's part of it, but I think it's also because Cerasia built up a solid image last year. The story about supplies running out and people not being able to buy it is pretty well known. There are plenty of stories, especially about restaurants going around to distributors hunting for Cerasia."
"Is that why you signed an exclusive contract with John Anderson this time?"
"Exactly. We had our eye on Cerasia's uniqueness."
Surprisingly, John Anderson had selected Macy's Department Store as his sole retail partner, entering into a temporary exclusive sales channel contract running through March 2006. Any stock left unsold by next March would be freely distributed afterward.
It wasn't as though Macy's had raised the price beyond last year's distribution price. The only condition was that anyone who wanted to buy Cerasia had to buy it at Macy's.
The one who benefited most from this was none other than John Anderson. In exchange for accepting a slightly smaller margin than before, he gained the brand value that came with supplying a major department store, and he could cut the cost of driving all over California selling the product.
"So, about that... you wouldn't happen to have any Echelon, would you?"
He asked me with a sly, glittering look in his eyes.
"I understand John Anderson handles Echelon's distribution as well. How about joining hands with us instead?"
"Exclusive distribution with Macy's?"
"Yes. As I understand it, Echelon has already vanished from the market this year. The top executive of this very department store is said to have been sorely disappointed at not being able to get his hands on any. The people who recognized Echelon's value early on hoarded it, and now the ones who caught on late are fuming."
"Haha... is that right?"
"I'm guessing the supply won't be large this year either?"
"We're thinking about 3,500 cases."
"Ah, 3,500 cases, huh... that makes it even more appealing. Not too much, but not too little either, so it would help our sales numbers..."
"I'm planning to raise the wholesale price considerably. $840 per case."
He opened his eyes wide in surprise, but soon nodded.
"Ah... I see. After winning Double Gold, it makes perfect sense. That puts it at $70 a bottle, so retail would land around $130. Even better."
"I'll think about it, so please consider it on your end and get back to me."
"I'll need to report it up the chain, of course, but I'm fairly sure it'll go through. From what I've heard, Sylphide isn't an option... so it'd be great if we could at least bring in Echelon."
At his urgent proposal, I shrugged my shoulders.
"Understood. I'll give it some thought."
"Hahaha, please, I'm counting on a good decision."
After he left, wine boxes and signed receipts had already begun piling up in the event hall. The staff bustled about packing boxes and guiding customers through card payments.
"Should we head out for a meal?"
"Sure."
I couldn't stay there forever, and just as I was about to slip away, Chloe suddenly grabbed my arm and tugged.
"Winter's almost here. You've been a big help to our farm, so I'll buy you a present."
"Huh? What...?"
Before I could even answer, Chloe walked into a rather expensive brand store and started picking out various coats. I was about to say it was fine, but when Frederick shook his head and gestured for me to just accept, I had no choice but to stand there like a mannequin.
"This one's nice, isn't it?"
What she picked out was a camel-toned trench coat that fell below the knee. When I put it on and looked in the mirror, even I had to admit it suited me well.
"Looks good on you."
Frederick, who had been watching, gave a thumbs-up.
"Thanks."
"This is nothing. Think about how much you've helped our farm."
For some reason, the way she kept emphasizing the farm felt a little off. As we came out of the store, I noticed that right next to the Cerasia area, there was a shop selling red cashmere mufflers.
Unable to simply accept a gift without giving one back, I said,
"Hold on a sec."
I stepped into the store, bought a muffler, and handed it to her.
"This is my gift. Thanks for taking care of the farm."
Seeing her grin at my gift, Frederick spoke up.
"You've got to put the muffler around her neck for her."
This guy, his intentions were way too transparent, and when I shot him a glare, he quietly turned his head away. But seeing Chloe standing there full of expectation, I couldn't bring myself to ignore it, so I wrapped the muffler around her neck.
"It looks good on you."
"Really?"
Chloe looked at herself in the department store mirror with the muffler wrapped around her neck and broke into a radiant smile.
*****
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