How Red Wine Turns the Ocean Blue

Over the past few years, I have read several business cases and books. One particular thing struck me: Why are they always using wineries as examples?

In general, it is very hard for wineries and vineyards to make a living. Wine is essentially a commodity and is heavily associated with the region from which it originates, and you are very dependent on the weather. So why are so many business lessons being distilled from wineries while their products are influenced by external conditions?

This question arose again while reading the book Blue Ocean Strategy, where once more a vineyard (Castella Wines) was used as an example. It was time for me to take the test. And luckily, I was in the wine heaven of the Southern hemisphere this week: Mendoza, Argentina!

What is a blue ocean again?

In the business world, there are two oceans: a blue and a red one. The red one is the one we all know. These are the industries already present today and where companies are heavily competing with one another. The ocean is red with blood I imagine. The blue oceans are the new marketplaces.

As the author of the book states, you should always be able to compete in a red ocean, mainly because a blue ocean can turn red really quick. But as a company, you should aim for creating blue oceans. A place where you can actually sustain high performance and achieve growth.

An example of a blue ocean is Marvel Studios. They created the Marvel Universe by interconnecting all the storylines of their comic books, setting themselves apart from all other superhero movies and also appealing to the general audience. This allowed Marvel to tap into a new market, appealing to both comic book fans and general audiences alike. As a result, the Marvel Universe has become one of the most successful film franchises in history with four of their movies in the top ten highest-grossing movies of all time.

Now that we have a basic understanding of what a blue ocean is, let’s dive into the world of Malbec and Cabernet Sauvignon in Mendoza!

The Cathedral

During my stay, I visited several vineyards and did tastings there. Basically, all the vineyards have a similar concept. A tour through the winery and some explanation on how they produce their wines. Afterwards you have a tasting and the ability to buy some bottles.

This is what you expect of course. So how can you stand out in the crowd? Well, vineyard Alfa Crux figured that out! Alfa Crux is quite a young winery, founded in 2003. They make wine in a traditional way, but when designing the vineyard, they did something special. They combined winemaking with architecture against the beautiful backdrop of the Andes.

As you see, it is an immense building which is not your typical winery. But the most exciting part came during the tour. All wineries have a place where the wines rest in barrels. Well, at Alpha Crux this place is called the Cathedral and the magic when you walk into the Cathedral is extraordinary! The grandeur of the room really impacts you and creates a special feeling. The immensity of the building and the silence in the room made me feel very humble. I got the feeling that I was standing in a scene of Dune 2. And that feeling did not go away that day or the days after!

A Blue Ocean with Red Wine

Standing out as a winery in a place with more than 1000 wineries is a challenge. How do you stand out from the crowd? Well Alfa Crux combined amazing architecture with traditional winemaking. With this they created a remarkable experience for their visitors.

What Alfa Crux did was take a next step into customer experience by combining great architecture with winemaking. But it does not only benefit on the revenue side. They were also able to completely reinvent a winery and therefore make sure that humidity and temperature were easier to manage. That means lower costs and better wine!

This strategy is also something that can be pursued by other companies who are in a highly competitive market. This key is to find that untapped source of value, like Alfa Crux did by making an emotional connection with its visitors through architecture and with that architecture creating a more cost effective production process.

Blue Oceans Everywhere!

Well, perhaps there are blue oceans everywhere, because otherwise business will not flourish. Nevertheless blue oceans can turn red very quickly, so as an entrepreneur or employee of a company, you always have to look for new opportunities.

So I would definitely recommend reading Blue Ocean Strategy an going on the hunt, because you might find something right under your nose! And what about Alfa Crux? I bought a bottle of wine which will be ready to drink in around 25 years, so for that review, please come back then!

P.S. please come back next week as well😉 🙏