Family-owned businesses are notoriously hard to keep family-owned over multiple generations. Wente Vineyards in Livermore Valley, California, has managed to keep it going for 5 generations. Partially through having fewer children, but also through structures put in place to keep the family connected and business family-owned, Aly Wente, VP of Marketing & Customer Experience, describes how they’ve focused on connection and fun to keep the family business together for generations to come.
Detailed Show Notes:
Wente Vineyards was founded in 1833 by Aly’s Great Great Grandfather, CH Wente
Grandfather worked in Napa for Charles Krug
Livermore was similar to Napa in grape growing back then
Wente is ~800k cases in total
Brands include Wente Vineyards (~600-700k cases), Murrieta’s Well, Hayes Ranch, Angels Ink, and Ravel & Stitch
Has small lot wines only available in tasting rooms
Each generation has left its legacy
2nd generation - brought Chardonnay to California (1908, 1912) with the Wente Clone
3rd generation - bought a property in Arroyo Seco and pioneered it as a region for grape growing
4th generation - helped write the AVAs for Arroyo Seco, San Francisco Bay, and Livermore Valley; spearheaded experiences business, including concerts and golf course
5th generation - still starting out but focused on sustainability, company culture, and innovation
Family ownership has been intact through 5 generations
Partially due to the limited number of children
CH had 7 children, including 3 sons, only 2 interested in winery
Of 2 sons - Ernst & Herman (Gen 2), only 1 had children (1 - Carl)
Carl (Gen 3) had 3 kids (Gen 4)
Gen 4 has 6 kids (Gen 5)
Gen 6 will have many more people in the family
Benefits of being family owned
Not subject to shareholders, the family has complete control
Multi-generational relationships w/ other family-owned businesses can be helpful (e.g., Southern Glazers is family owned)
Large corporations may not have built the golf course or fine dining restaurant
Structures to pass on ownership to future generations
Annual “family council”
Prepares next generations for ownership and if they want to work in the company
Meet once a year
Topics include business topics to align on, educational topics (e.g., tax law), and even individual’s visions for the business
As more family works together, prioritizing more fun and bonding
Attendance starts as children, though not babies
Have policies in place for members who want to leave the company or sell shares, but no one has used them to date
The goal is to remain family owned
Wente Vision changing
Old - to be one of the most respected family wineries in the world
Changing to be more about employees
Family vs. external management
The current CEO is 2nd CEO to be non-family
External people can help balance family and business interests and inter-generational interests
Wente doesn’t create roles for family members
If a family member wants a role, they still interview others for it and choose the best candidate, though the family member has a slight advantage
3 keys to maintaining and evolving a family-owned business
1) transparency - bringing family members in at a young age
2) respect - need to treat each other with respect
3) fun - need to have fun while working in wine and with family
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