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Energy - Model Holding AG

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AFFALTRACH WINE CELLARS<br />

A delight for all the senses<br />

Now more than 75 years old, the<br />

Schloss Affaltrach wine cellars are<br />

headed by the third generation of Baumanns,<br />

Reinhold and Thomas – under<br />

whose leadership sales have nearly<br />

doubled in the last few years.<br />

Schloss Affaltrach offers a first-class<br />

range of wines, both still and sparkling,<br />

that have won prize after prize.<br />

Thomas Baumann,<br />

you have been successfully<br />

holding<br />

your own against<br />

stiff competition for<br />

many years. What’s<br />

your secret?<br />

Flexibility. We are<br />

flexible at all levels<br />

and in all our processes. As soon as we detect<br />

a market need, we look for a way to meet it –<br />

rapidly and unbureaucratically. We also attach<br />

great importance to giving our customers personal<br />

service.<br />

Around 85% of German sparkling wine comes<br />

from three major producers. We operate in the<br />

smaller segment: the remaining 15%, where<br />

we focus exclusively on niche markets. I’m<br />

convinced that’s where our strength lies: it<br />

gives us a healthy cost/benefit ratio. What we<br />

want isn’t further growth – it’s to produce topquality<br />

wine, and to establish our reputation<br />

among specialist wine retailers and first-class<br />

restaurants.<br />

Our own brands account for around 95% of<br />

the sparkling wine we sell.<br />

What makes you different from other wine<br />

producers?<br />

We pursue a solid added-value strategy for<br />

specialist retailers and the hotel and restaurant<br />

trades. Volume is not a factor.<br />

There are very few producers who make<br />

both still and sparkling wines.<br />

In 1972, after supplying us with grapes<br />

for many years, 69 wine growers established<br />

a cooperative and registered it as<br />

an association. Today it has 250 members,<br />

who between them cultivate<br />

over 200 hectares of vines in Württemberg’s<br />

famous wine-producing<br />

regions. Every grape they harvest<br />

comes to us at Schloss Affaltrach.<br />

We also have vineyards of our<br />

own – about 20 hectares –<br />

that we use for experimentation,<br />

passing the results on to<br />

our growers.<br />

By constantly investing in state-of-the-art<br />

equipment, we ensure optimum quality at<br />

all stages – from harvesting to processing<br />

and ultimately to distribution.<br />

What is the state of today’s wine<br />

market?<br />

Unlike other wine-growing countries in<br />

the EU, unfortunately, consumers in<br />

Germany don’t always appreciate the<br />

wines that are produced in their own<br />

country. On top of that, aggressive pricing and<br />

price dumping – particularly with foreign wines<br />

in the discount segment – are having serious<br />

long-term effects on the buying behaviour of<br />

German consumers.<br />

We combat this by conducting various point-ofsale<br />

campaigns, tastings and the like, in order<br />

to bring our wines to the consumers’ attention.<br />

We also have 50 agents selling our wines on<br />

commission. But whether we sell them direct<br />

or through agents, we always major on the personal<br />

relationship with the customer.<br />

How do you keep the loyalty of your staff,<br />

customers and partners?<br />

It’s my firm belief that you have to manage by<br />

example. But I can’t be an example if I’m just a<br />

manager: I have to be a human being too.<br />

This is true for our customers and staff alike.<br />

Customers see it as very important for me to<br />

look after them personally.<br />

And it’s very important for me to be able to rely<br />

on my staff at all times. They know that I find<br />

time to help them with their problems whenever<br />

I can, whether these be major worries or<br />

minor concerns. Our low staff turnover rate<br />

shows how much they appreciate that. We<br />

feel like members of an extended family: we<br />

are all there when we need each<br />

other.<br />

Can a partner – a packaging manufacturer,<br />

for example – help to optimize your<br />

working processes?<br />

Top-quality products that never give us any<br />

trouble are the alpha and omega of our business.<br />

Boxes, for example, have to be wellmade,<br />

meeting the quality standards we have<br />

set. <strong>Model</strong> never fails to meet our quality requirements.<br />

It has established itself as one of<br />

our regular suppliers, taking the initiative in<br />

suggesting innovations, alternatives and solutions<br />

to problems. An example: we wanted to<br />

switch from a multi-item gift set to a series<br />

that could be used for two, three, four or six<br />

bottles. <strong>Model</strong>, it must be emphasized, was<br />

the only manufacturer to supply a display that<br />

could be used for different bottle sizes. It presents<br />

the bottles on several different levels at<br />

the point of sale.<br />

Autumn is one of your busiest seasons. Can<br />

you take things a little easier at other times<br />

of the year?<br />

Since we make both still and sparkling wines,<br />

we really only have three «quiet» weeks in the<br />

year – in July and August. As soon as the<br />

grape harvest is over and the accounts have<br />

been finalized, I’m out with our customers and<br />

agents again.<br />

What are your priorities in the years to<br />

come?<br />

One of them is my family. I’d like to spend<br />

more time with my wife and three children.<br />

But apart from that, I naturally have a number<br />

of business objectives.<br />

I want to strengthen our position in our existing<br />

niche markets, as well as moving into new<br />

ones. We have an enormous, diverse range of<br />

products, which certainly needs thinning out<br />

over the next few years. Some of our<br />

processes are in need of optimization.<br />

On the other hand, we must go on modernizing<br />

in order to become even more flexible. As<br />

long as we can keep our feet on the ground,<br />

that is.<br />

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