From the Editor
Success Distilled
Luis Ayala
As the proverbial dust from the pandemic settles (and some places are still pretty much in the middle of the dust storm), we begin to see the scars and casualties from the economic shutdown all around us: many craft distilleries have already paid the ultimate price and the final tally will -unfortunately- be even higher.
A few distilleries, on the other hand, have found themselves surfing an unexpected tidal wave in the form of production and sales of sanitizing alcohol. Other distilleries have wanted to ride the same wave but have found themselves either too far from it or unprepared to handle it.
Diversification, it seems, has influenced the rate of survival of some distilleries, but diversification alone can also be an unpredictable, high-stakes game. Most of the successful diversification strategies are born as a result of thoughtful deliberation, when leaders calmly assess all input available. Unfortunately, it is during times such as these, that some diversification decisions must be made: distillery owners must synthesize mountains of data under intense time pressure, often making decisions based on feelings rather than on market forecasts and other hard facts.
But the strategy needed to survive the current crisis, even if successful, is not necessarily the same strategy needed to face the post-apocalyptic reality. Those fortunate businesses that live to see the new era must identify all the strategic assets they need to succeed in the new market and then they must set out to produce or acquire all those assets (you can’t finish a project when you have only 75% of the tools or materials you need for it).
Like good chess players, successful owners and managers are always thinking several moves ahead. I hope most of my colleagues are still playing the game by the end of this year.
Cheers,
Luis Ayala,
Editor and Publisher