Further Expansion

It was late November 2005, four mornings before the official launch of Cerasia.

The aging room at Redwood Winery was exceptionally busy. The staff moved with relentless purpose, preparing for the bottling process, while a subtle, sweet scent of cherries hung in the air.

In one corner, next to the fermentation room, a large set of blueprints was spread out over a temporary conference table.

"You mentioned you currently have a total of 14 stainless steel fermentation tanks, correct?"

A man with a sturdy build leaned over the table and asked. He was Mark Spencer, a facilities engineer with his navy blue shirt sleeves rolled up. A graduate of UC Davis, he was a man of such vast field experience that it was said most of the mid-sized wineries in Napa Valley had passed through his hands.

"Yes. Ten 5,000-liter tanks and four 10,000-liter tanks," I replied.

As I answered, Mark spread out the blueprints and made marks with his pen.

"That’s unusual. Your winery facilities are quite large compared to the size of your vineyard. You’re looking to expand even further?"

"We have a lot on our plate. We’re doing Cabernet, Pinot Noir, and... cherries as well."

"Ah, I see. In that case, an expansion is necessary. I noticed your aging tank setup is quite impressive; are you planning to bring in the new equipment with the same specifications?"

"Yes."

"And the additional tanks will be...?"

"This time, four 5,000-liter tanks and four 10,000-liter tanks."

In truth, I didn't necessarily have to expand right away. If I felt short on capacity, I could always use custom crush services to age the wine. The problem was that wine made that way wouldn't meet the optimal conditions I pursued. That was why I kept expanding the winery facilities whenever I had the capital. Besides, with the massive influx of cash, the winery was overflowing with funds—and I still had one more ace up my sleeve.

We had 80,000 bottles—6,600 cases—of Cerasia 2005, made from 100 tons of cherries, piling up in the warehouse. If it all sold out, it would bring in over $1.4 million. Even if I gave 30% to Mr. Frederick, I would still have nearly $1 million left. In this situation, if I didn't invest in expanding the winery, where else would I spend the money?

"60,000 liters, then..."

Mark nodded and pointed to an empty space on the blueprint with the tip of his pen.

"You can secure a new line here. The problem is electricity. The existing electrical panel won't ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠be able to handle everything running at once. We’ll need to pull new cooling lines as well."

I looked closely at the complex tangle of pipes and tank lines drawn on the paper.

"How much would the cooling line expansion cost?"

"Roughly $150,000. If you include replacing the power supply equipment, you should budget for $200,000."

"Hmm..."

Mark traced the blueprint with his finger and turned his gaze toward the aging warehouse.

"You’ll need to expand the aging room, too, right?"

"Of course."

Mark stood up and pulled out a laser distance measurer. After measuring the walls of the aging room, he showed me his laptop screen.

"This area is about 2,600 square feet. If you expand by 400, you can store an additional 300 barrels. If we design a ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠three-tier rack system, we can fit up to 1,000 barrels even with this height."

"What about insulation? The indoor temperature rises quite a bit in the summer."

"We can use dual-layer polyurethane insulation and a precise temperature control system. I’ll design it to stay within ±1.5 degrees; it’ll be much more stable than what you have now."

"Sounds good. Including the eight tanks, cooling lines, power equipment, and the aging room expansion, what will the total be?"

Mark tapped his calculator and replied.

"I’d say around $900,000. You should set aside an extra 10% as a contingency fund. From design to construction, it will take four months. By next March, the new line will be operational."

"Great. Let’s start construction as soon as the Cerasia launch is over. It needs to be finished before the Pinot Noir harvest next year."

"That’s a wise decision."

Mark smiled. He looked at me, tilted his head, and added, "I heard you’re still a student... I’ve heard the rumors about Aschelon and Sylphid. It’s incredible. I’m actually curious to see how much more Redwood will grow in the future."

"Haha, thank you. I’ve just been lucky."

After the meeting, we walked slowly through the aging room. On one wall, the Cerasia bottling line was running steadily. The red, cherry-colored wine filled the bottles, shimmering quietly.

"When does this launch?"

"This Friday."

"May I smell it?"

"Of course."

Mark picked up a bottle and brought it to his nose.

"Cherry wine... it’s refreshing, but strangely sophisticated. I expected it to be sweet, but it’s actually quite dry."

"I made it with the direction of a red grape wine. I want it to be established as a table wine, not a dessert wine."

"Oh, I see. It’s definitely that kind of sensibility that allowed you to create Aschelon and Sylphid. I’d love to drink a bottle myself if I get the chance later."

He stared at me, radiating a clear, eager look.

"Sure, I’ll set a bottle aside for you."

"Hahaha! Oh, thank you! I intend to do my best, but I’ll make sure to deliver results beyond your expectations. You won’t have to worry about maintenance; it will run stably for at least 10 years. And by then, Redwood will be at the center of Napa Valley."

"I certainly hope so."

I was curious, too. I wondered how things would change in 10 years.

Early December, Union Square, San Francisco.

Red ribbons and golden decorations hung on the glass front of the Macy’s department store. The year-end atmosphere, which somehow made everyone feel excited, had already blanketed the city, and the faces of the people entering the store were full of happiness.

The central hall of the 1st-floor Gourmet Zone was today’s stage.

A large banner hanging from the upper level caught my eye.

Cerasia was neatly arranged on a table covered in red cherry-colored cloth. Each wine bottle featured a subtly shimmering red label. Below it stood a golden sign engraved with the words, ‘Holiday Special 10% Off – Today Only’.

A host holding a glass walked out among the crowd. The middle-aged man in a suit held the microphone in the center of the stage and said in a bright voice,

"Hello, everyone! Today, in celebration of the Holiday Gourmet Week here at Macy’s, we are introducing a new wine that California is proud of. A cherry wine created by Redwood Winery of Napa Valley and the Brentwood Cherry Farm! It is Cerasia 2005!"

Shoppers passing by who had been watching casually started to applaud. Under the lights, the bottles sparkled, and the table set with red cherry decorations looked like a piece of Christmas decor itself.

"For those who purchase Cerasia 2005 today, we are providing a special packaging set along with two exclusive Holiday Gift Set glasses. Quantities are limited!"

Behind the event, slightly away from the crowd, I was watching the proceedings with Mr. Frederick and Chloe.

"I didn't know people would be this interested in cherry wine."

Knowing that people weren't interested because they knew everything about Cerasia, I said nonchalantly,

"It’s more that Macy’s seems to have taken a liking to Cerasia. John Anderson seems to have quite the knack for business. He probably planned this event targeting people looking to enjoy the year-end atmosphere with cherry wine, and since it’s the holiday season, people are definitely responding well."

Chloe nodded, watching the tasting booth where customers holding glasses were lining up.

"Dad, look over there. The crowd keeps growing."

Just as she said, people were lining up one after another in front of the tasting booth, and purple wine was being poured into the small paper cups they held.

"Hmm—is this cherry wine?"

"Wow, the aroma is smooth and fresh. It’s not sweet."

"It’s almost like a Pinot Noir."

The Macy’s wine buyer, who had been talking to John Anderson at the next table, approached me.

"The response is good. I expected it, but the purchase rate compared to the tastings isn't bad at all."

I hadn't understood what he meant at first, but after watching people approach the table next to the tasting booth to buy wine and make payments, I understood his words.

"It seems people’s perception of cherry wine isn't bad."

"That’s part of it, but it’s also because the image Cerasia built up last year wasn't bad. The story of people not being able to buy it last year because there wasn't enough ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠stock is famous. Especially in restaurants, there are many stories of people going around to distributors trying to find Cerasia."

"Is that why you signed an exclusive contract with John Anderson this time?"

"Exactly. We were paying attention to the uniqueness that only Cerasia has."

Surprisingly, John Anderson had selected Macy’s as his sole retail partner, signing an exclusive contract for a limited sales channel until March 2006. The plan was that any stock not sold by next March could be distributed freely afterward.

It wasn't as if Macy’s had raised the price from last year’s retail price, either. It was just a condition that if you wanted to buy Cerasia, you had to buy it at Macy’s. The person who benefited most from this was John Anderson. Although he received slightly less margin than before, he gained brand value by supplying to a department store and reduced the costs he would have incurred traveling around California to sell it.

"So, speaking of which... do you happen to have Aschelon?"

He asked subtly, his eyes sparkling.

"I understand John Anderson handles the distribution for Aschelon as well, but how about joining hands with us instead?"

"Exclusive distribution with Macy’s?"

"Yes. I understand that Aschelon has already disappeared from the market this year. It’s reached the point where it’s said that even the general manager of this department store was disappointed because he couldn't get his hands on Aschelon. People who knew the value of Aschelon early on hoarded it, and now those who found out later are furious."

"Haha... is that so?"

"I assume there won't be much stock this year either?"

"I’m thinking about 3,500 cases."

"Ah—3,500 cases... that makes it even more tempting. It’s not a large amount, but it’s not too small either, so it would help with sales..."

"I plan to raise the wholesale price significantly. To $840 per case."

His eyes widened in surprise, but he soon nodded.

"Ah... I see. You received a Double Gold, so that’s completely understandable. That would be $70 per bottle, so I suppose we should think of a retail price of around $130. That’s even better."

"I’ll think about it, so please consider it and get back to me."

"Of course, I’ll report it to my superiors, but it will likely go through. I know Sylphid is impossible... so it would be great if we could at least bring in Aschelon."

At his urgent proposal, I shrugged.

"Understood. I’ll think about it."

"Hahaha, please make a good decision."

After he left, I noticed that wine boxes and signed receipts were piling up in the event hall. Staff were busy packing boxes and guiding card payments.

"Shall we go get something to eat?"

"Let's."

I was about to leave since I couldn't stay there forever, but suddenly Chloe grabbed my arm.

"Winter is almost here. You’ve helped our farm a lot, so I’ll buy you a gift."

"Huh? What...?"

Before I could even answer, Chloe went into a rather expensive brand store and started picking out various coats. I was about to say it was fine, but Mr. Frederick shook his head and gestured for me to just accept it, so I had no choice but to stand still like a mannequin.

"How about this?"

What she picked was a camel-toned trench coat that fell below the knees. When I put it on and looked in the ‍‍‌‌⁠​​⁠‌​​‍​​‍​‌​⁠‍‌‍⁠⁠‌⁠‌‍‌‍‌‌‌‍⁠​‌​‌​‌‍‌‌‌⁠‍​​‌‍⁠‌‌⁠⁠mirror, even I thought it suited me quite well.

"It suits you well, doesn't it?"

Frederick, who was watching, gave a thumbs up.

"Thank you."

"This is nothing. You’ve been such a huge help to our farm."

For some reason, her emphasis on "the farm" felt a little awkward. As we were leaving the store, I happened to see a shop selling red cashmere mufflers next to the Cerasia store.

I couldn't just accept a gift, so I said,

"Wait a second."

I went into the store, bought a muffler, and handed it to her.

"This is my gift. Thanks for your hard work managing the farm."

Seeing her grin at my gift, Frederick said,

"You should wrap the muffler around her neck."

I glared at this man, whose intentions were so obvious, and he turned his head away sheepishly. However, seeing Chloe looking so expectant, I couldn't ignore it, so I wrapped the muffler around her neck.

"It suits you."

"Really?"

Chloe looked at herself in the department store mirror with the muffler on and smiled brightly.