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06/17/2007Winery climbs ladder of successChateau Grand Traverse looks to conquer markets
Sean O’Keefe checks on one of the wines being produced at Chateau Grand Traverse. MAPLETON — With acres of scenic vineyards and West Grand Traverse Bay as a backdrop, it might appear that Eddie O'Keefe sits atop the world as his family's Chateau Grand Traverse winery enjoys record production and a burgeoning list of awards. But the way he sees it, they're only at the first step of the ladder. Chateau Grand Traverse is fresh from an impressive showing at the Los Angeles International Wine & Spirits Competition, and O'Keefe is determined to springboard that success into finding new markets across the country and beyond. He hopes to blaze a trail other regional wineries can follow. "If we start building this distribution, it will lead the way for Michigan wines,” O'Keefe said. "It takes time, money and effort to do.” The results from the prestigious show, announced Saturday in Los Angeles, included a platinum "best of category” medal for the winery's 2005 Edelzwicker "Noble Blend” entry. It also swept four gold medals for a collection of 2006 Rieslings, along with two silver and one bronze. The event featured almost 3,800 wines from 16 countries, and only 125 platinum medals were awarded. The impressive showing will help gain Chateau Grand Traverse a significant toehold in the coveted California wine market. The Ralphs supermarket chain features medal winners from the Los Angeles competition throughout its stores in the Golden State, and O'Keefe said he'll ship West up to 200 cases of each medal winner in a major marketing breakthrough for the winery. "That's a big order,” he said. 'World-class wine' But can northern Michigan wines truly compete on a national scale with top brands from all over the world? "Absolutely,” responded renowned wine author and critic Dan Berger of California, who was among the judges at the Los Angeles wine competition. Berger said Chateau Grand Traverse's gold medal-winning 2006 Late Harvest Riesling was "one of the top three Rieslings I tasted in the entire (competition)” that attracted top wineries from all over the world. "This is great stuff,” Berger said. "This is world-class wine.” Berger said several northern Michigan wineries are producing top-quality wines, and included Bryan Ulbrich of the new Left Foot Charley winery in Traverse City as among the country's rising young vintners. The challenge to Michigan's wine industry won't be convincing national consumers about the quality of its product, but rather making sure they can get their hands on it, he said. "Once the consumers taste this stuff, it'll be 'Katy bar the door,'” he said. That's where O'Keefe's marketing and distribution efforts will be centered. Changes made to Michigan's wine shipping laws two years ago improved the regulatory climate for exporting Michigan wines, but area vintners' next hurdle is to crack into long-established wholesale and distribution networks. Besides California, O'Keefe is working to push Chateau Grand Traverse wines into the Chicago area, Texas, New Orleans and Florida. The winery expects to sell around 67,000 cases this year, about doubling its sales volume since 2003, and hopes to grow sales to 100,000 cases annually within the next three years. "All the stars are lining up,” O'Keefe said. "But it's going to take a lot of travel.” To keep up with growing demand, the winery is embarking on a $3.2 million expansion that will increase its production capability and reorganize a facility that rests on a hill along M-37 halfway up the Old Mission Peninsula, with its stunning vista looking over dozens of acres of vineyards. Growing the industry Michigan's 50 commercial wineries produce more than 375,000 cases of wine each year, ranking it 13th in the country in wine production. The state has nearly 15,000 acres of vineyards, up 24 percent over the past decade, and the state Department of Agriculture estimates the grape and wine industry contributes almost $800 million a year to the state's economy. David Creighton, a promotion specialist for the Michigan Grape and Wine Industry Council, said increased in-state sales of Michigan wines for now absorbs the additional production. But finding new national markets for Michigan wines will be key to growing the industry long-term. "It's probably not critical right now, but it will be at some point,” he said. "To grow the sales, we need to grow the market.” Creighton said wider distribution also is important to getting exposure in national magazines and newsletters that many wine drinkers turn to for advice on trying new brands. Those publications shy away from reviewing and writing about wines available in limited areas, he said. "These magazines are quite influential,” Creighton said. "From their perspective, if the wine isn't available for most of their readers, what's the point of devoting ink to it ... you can't get spoken well of if you're not available.” O'Keefe is convinced that growing Michigan's wine industry can be a critical component to reversing the state's long economic slide by becoming a major producer and a source for increased tourism dollars. Chateau Grand Traverse's winery hosts more than 100,000 visitors per year. "This is one of the industries that's going to lead Michigan forward in the future,” he said. That's why O'Keefe will spend much of his summer on the road looking for new venues to promote Michigan wine when he instead could be toasting the success of the 34-year-old family business founded by his namesake father, the dean of Old Mission Peninsula winemakers. "It's one of those American things — if you're not growing, you're dying,” he said. "This is what we do.”
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