When the Original Wine of the Month Club was ready for a new chapter, they turned to Carol Collison to make sense of the landscape of selling a wine club. In this episode, we peel it back on a number of fronts:

Challenges in the Wine Business:

- This episode dives deep into the financial and operational challenges faced by those in the wine business. Paul K recounts a friend’s struggles with a large, aged inventory and shares a cautionary tale about the risks of high pricing and poor market support in the wine industry.

Impact of Industry Downturn:

- Carol Collison discusses how the current downturn in the wine industry is affecting larger producers more significantly than smaller deals, causing ripple effects throughout the industry.

Real Estate and Winery Transactions:

- Carol provides insights into the niche market of buying and selling wineries. She discusses her role in wine real estate brokerage and shares stories about challenging transactions, such as the sale of Moraga winery.

Direct-to-Consumer Sales and Marketing:

- Both Paul and Carol examine the complexities of selling wine directly to consumers, addressing the oversaturation of the market, the importance of marketing, and challenges like the decline in direct-to-consumer sales.

Valuation and Profitability:

- They talk about the financial metrics like EBITDA, profitability, and growth potential that are crucial in winery transactions, highlighting the importance of finding motivated buyers and understanding the financial landscape.

Brief Biography of Carol Collison:

Carol Collison is a seasoned professional in the wine industry with a background in investment banking. She transitioned from finance to real estate brokerage, specializing in the sale and acquisition of wineries through Global Wine Partners. Over her career, she has developed a keen insight into the complexities and nuances of the wine business, making her a respected figure in this niche market.

Very fun story:

Carol shares the story of trying to sell Moraga, a small boutique winery. Despite its premium wines, the property's real value lay in its luxury residence rather than its productivity as a winery. After struggling to find a buyer and ultimately losing the listing to a luxury real estate firm, Rupert Murdoch eventually purchased the property. This highlights the unique challenges of valuing and selling boutique wineries.

Tune in to "Wine Talks with Paul K" for a fascinating dive into the intricacies of the wine industry, where every bottle tells a story far richer than just its taste.