Facing post crisis challenges through leadership and inclusion: The case of Napa Valley

Abstract

The years 2010 through 2020 brought difficult challenges for the Napa Valley, a wine region in the heart of California, representing 4% of its vineyard land and 30% in economic value. Napa experienced an earthquake in 2014, wildfires in 2017 and 2020 and then, like everywhere, was hit by the pandemic. Consequently, both the production and the sale of wines were impacted with a form of relentlessness which terribly affected the entire local sector. In addition to the devastating effects of fires and smoke on some vineyards, the health crisis came to question a well-installed business model in Napa where wines are sold directly to consumers. Here, 68% of the wineries produce less than 50,000 bottles/year and it is not uncommon to see a winery sell 2/3 of its production directly from the estate. Two other observations complete the table with a paradigm shift: an aging of Napa wine consumers, mainly American, and the social evolution of a valley which attracts the wealthy classes of people and challenges the housing needs of not just vineyard workers, but also intermediate professionals. In 2020, Napa Valley Vintners (NVV) initiated a vast strategic reflection in order to question the conditions of its development and its competitiveness to the face of these developments. The 550 wineries from the valley were invited to participate in thinking about the values ​​of Napa, its leadership and the priorities to reconsider for the years to come. Collective commitment, leadership programs for high potentials, action local communities, diversity, integration of minorities … The list is long and it is enlightening to see how a wine region has been able to take advantage of a crisis situation to adjust its modus operandi with current issues, strengthen its leadership and create an inspiring new chapter for this world-class wine region.