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The
Province
Sunday February 4, 2005
Fort
Wine Co.: Langley firm has high hopes after breaking into Chinese
Market.
Chinese New
Year will never taste the same again to residents of four large
Chinese cities, thanks to Fort Langley's Wade Bauck.
The Fort Wine
Co. which Bauck runs and co-owns, has shipped its award-winning
fruit wines to Beijing, Tianjin and Hong Kong in time for Wednesday's
festivities marking the Chinese New Year.
Residents of
the cities will get a chance to sample The Fort Wine's Cranberry,
Blackberry, Blueberry and fortified wines.
"It's an
explodiing economy and there's an emerging middle class with purchasing
power," says Bauck, 45.
"Our importer
did quite a bit of market research and testing before he committed
to the first shipment and the reception was fantastic. If we can
position ourselves as a high-end product we'll be able to make inroads."
The Chinese
launch is a bold step for a winery that began life as a bid to save
the family farm.
In 1998, Bauck
and his wife bought 17 acres in the Glen Valley, next to the cranberry
bog he and his brother had operated.
They sank about
$1 million into acquiring the property, renovating a house, and
developing five acres of cranberry beds.
But the fates
chose to test the Bauck's mettle by abruptly arranging a cranberry
price collapse.
The price of
the tart berry plunged to 10 cents US a pound from 60 cents in the
first half of 1999, putting the family in a jam, so to speak.
They had more
debt than Bauck could service with the cash flow from his cranberry
crop.
"We were
racking our brains about what we could do value-added that would
work in the long run," Bauck says.
"We came
up with idea of starting a winery."
The Baucks found
a partner and stuck their necks out even farther, investing another
$1 million into firing up the company.
They soon bought
that partner out, and found another, B.C. Chartered Accountant and
investor David Gandossi, who brought some much-needed business skills
to the operation.
"One of
the biggest reasons small businesses fail is a thing called founder-itis:
that is when a company's founder needs assistance to take the company
to the next level, but because of ego won't do it," Bauck says.
"We recognized at the right time in the growth curve that to
move forward it was important to attract someone with more expertise."
Bauck's readiness
to seek outside help may have been eased by his non-business background.
He works full-time
as a tugboat skipper for Washington Marine Group's Seaspan unit
when he's not growing cranberries or running the winery.
Bauck insists
there is no overlap between the fruit wine business and the seafaring
skills he has learned during 28 years with Seaspan.
"There
are probably not too many accountant-business people comfortable
going through Active Pass at 3 a.m. on a 3,000 horse-power tug,"
he says.
"Conversely,
there aren't too many tugboat captains who would be comfortable
navigating around a balance sheet".
Still, as a
guy used to handling heavy seas, Bauck was able to weather the head-winds
that have come his company's way.
The Fort Wine
Co. turned the corner into profitability in 2004.
For the year
ended September 2004, the 10 employee, privately held company generated
about $800,000 in sales.
Bauck hopes
to hit $1 million in sales this year and would eventually like to
see the winery reach $15 million to $20 million.
Most of the
fruit for the winery's dozen products is grown in the Fraser Valley.
The company expects to produce 15,000 to 20,000 cases this year.
Most of that
will be sold in B.C. - and much of that will change hands at its
retail outlet on site in Fort Langley.
Besides its
exports to Japan and China, the winery hopes to enter the other
western provinces by this summer.
B.C.'s fruit
wine industry has left infancy behind to stand on its own two feet
but it remains a niche player in the sector.
Bauck estimates
the province has a half-dozen fruit wineries accounting for less
than 1% of B.C.'s total wine sales.
Fruit wine is
far more finicky to make than grape wine, says Jim Warren, an Ontario
winemaker and college instructor regarded as one of Canada's fruit
wine experts.
Non-grape fruit
has low sugar levels and, in some cases, extremely high acid levels,
forcing fruit wine makers to manipulate their product by adding
sugar, water, or apple juice, Warren says.
The end result,
however, is a product with a full range of sweetness that can be
quaffed with a variety of foods, he says.
The Fort Wine
Co., whose winemaker is currently doing test batches of kiwi wine
made from Aldergrove kiwis, has long since mastered the production
side of fruit wine.
Market presence,
be it in China or Alberta, has become the company's new frontier,
Bauck says.
"We're
just scratching the surface of the market," he says.
"We're
just a little sprout coming out of the ground that has the potential
to grow into a big elm tree some day."
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