Bonny Doon Vineyard, a winery based in Santa Cruz, is well regarded as a pioneer in its industry.
Its remarkable story is an inspiring one in market development.
About twenty years ago, wine had a somewhat grandiose image in North America. Perhaps due to its European origins as well as exorbitant price compared to other types of alcohol. Wine was perceived to be typically consumed by the “cultured” or those of a certain social class. Wine had the image of being a drink you ordered to accompany your $200 steak on a night out.
While wine-makers were able to charge high prices for their wines, their market size was effectively quite limited. The average North American consumer had preference for cheaper and more accessible alcoholic beverages. Wine was deemed too complicated or inaccessible. Red or white? Pinot noir or Chardonnay? It seemed much easier to just grab a beer. Fuss free.
Then along came Bonny Doon and its enigmatic founder, Randall Grahm, who single-handedly deconstructed the “pretentious” and complicated image of wine consumption. Through creative and humorous wine labels and lower prices, he made wine more approachable and accessible to the average everyday American, effectively opening up the market for himself. In addition, Bonny Doon positioned itself in a completely untapped market of everyday Americans who previously did not feel comfortable with wine. It was definitely a risky and bold move on Randall Grahm’s part, but this proved to pay off in the end.
Bonny Doon’s Big House Red Wine
Another of Bonny Doon’s creative wine labels
A conventional bottle of wine
Instead of trying to compete in the already saturated wine industry in California, Grahm was able to identify an opportunity in the market that allowed him to position himself in the industry without facing the existing stiff competition. This probably explains why Bonny Doon was one of the fastest growing wineries in the 90s, experiencing record growth in sales and remains as one of the most well-known wineries in California today.
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