1986: My Happy Life in Provence

Chapter 560 The Transformation of Stellaris

Stella's rosé wine inventory was already running low, and the period around Ronan and Zoe's wedding further exacerbated the inventory crisis. Starting in August, many distributors had to make involuntary adjustments to the amount of wine they were taking.

Rosé wine has a much shorter production cycle than red and white wine. It does not require maceration for coloring or a long fermentation period, while regular table wine can be bottled in 30 days.

In other words, if Ronan and others work harder, this year's new wine could be available in November.

Even so, the inventory crisis in St. Louis will last for at least three months.

Low inventory will inevitably lead to a corresponding decrease in supply.

But how much to reduce and whose needs to be reduced require careful consideration.

The day after the wedding, Ronan appeared on the hillside in Stella.

Today, all the staff of Stellar are present to listen to the boss talk about the important 'quota system'.

"What exactly is this 'quota system' you're talking about?" Theo was impatient.

As soon as Ronan arrived, he went to find Cornell, who was temporarily in charge of the wine cellar. He couldn't wait and followed behind Ronan, chattering incessantly.

“When top wineries’ vintage wines or ‘viral’ wines are in short supply, experienced wineries will implement strict quota systems to balance the market.” Patheo didn’t understand, so Ronan patiently explained, “You can simply understand it as a standard supply logic method when there is not enough inventory.”

Theo was a rough guy, didn't understand any methods or approaches, and said with a sneer:

"If you ask me, the method we agreed on before was pretty good. If we don't have enough goods, we'll supply the major customers and major channels first, and we'll stop supplying other channels for a while. We don't need to make such a complicated distinction between different levels. We need to maintain good relationships with these major customers."

The inventory crisis at Stellaris first emerged shortly after Ronan took over in June.

At first, Ronan hadn't decided whether to implement a quota system for high-end wineries, so he talked to a few key personnel several times about how to adjust the supply quantity.

During those discussions, Lucas and Theo suggested that they should prioritize meeting the needs of large clients as much as possible, while retail and small clients could be put on hold for the time being.

The "major clients" here refer to channels that purchase large quantities of goods, such as the one they recently signed with by the sea.

The two brothers went to great lengths to persuade them, and it's unreasonable that they cut off the supply after only a month.

After Ronan finished checking the inventory, he turned and left the wine cellar to meet up with everyone.

He patted Theo on the back, indicating that it was time for him to go out.
“I know this is a difficult matter, and I’m sorry to trouble you and Lucas, but the quota system not only balances the market, but also maintains and enhances brand value. It is very necessary for Stellar at the moment.”

The Stella plant is under construction and will not be operational until the end of August.

Most of the men were farmers who had switched careers, and they weren't pretentious. Ronan casually found a shady spot on the hillside and had everyone sit down on the ground.

The 'general meeting' began, accompanied by construction noises coming from the construction site behind us.

“I just did another inventory check with Cornell, and we might not even have to wait until early August before we start implementing the quota system,” Ronan said, looking at everyone. “This matter is not only related to Lucas and Theo, but also to everyone here, because the future development path of Stella will be established from the moment this system is implemented.”

Many of the workers temporarily put aside their regular jobs, such as delivering goods, driving, or taking tourists to the vineyards, to come and listen to Ronan talk about the 'quota system'.

Moreover, once the travel season ends, their work will have nothing to do with distribution and supply, but today no one complained or showed any impatience. Upon hearing Ronan's opening remarks, many young men even sat up straight with excitement.

Ronan gazed at the distant village of Lourmaran, seemingly lost in thought:
“The week before last, I attended the largest wine auction in Provence in Châteauneuf-du-Pape, where a barrel of wine could fetch hundreds of thousands of francs, and wine wholesalers from all over the world were scrambling to buy it at such high prices.”

Duma let out a ignorant wail:
"A barrel of wine costs hundreds of thousands of francs? How big is that barrel? It must be as big as a house!"

Ronan turned around, pointed in the direction of the wine cellar, and said:

"It's a standard-sized barrel, the same size as the ones we use."

"How is that possible?" Cornell threw away the grass in his mouth. "How could they sell it for such a high price? Are these people crazy?"

Having seen and tasted many things, Lucas silently calculated the prices in his mind and said to everyone:

"A bottle of wine would cost several thousand francs, not even the top-tier ones."

Ronan sighed:
"This is just the 'purchase price.' The wine merchants buy the wine and then age it a second time. When it's finally released to the market, the price will be several times higher."

The relaxed atmosphere suddenly fell silent; no one said another word, seemingly calculating the gap between Stellaco and these top wineries.

After giving everyone ample time to think, Ronan continued:
"Working the same hours and putting in the same effort, others can sell a bottle of wine for thousands of francs, while we can only sell a bottle of wine for 25 francs. It's really frustrating."

After a long pause, Ronan said firmly:

“I want to change the status quo and bring Stella into the ranks of high-end wineries. If we succeed, it will not only increase the price of each bottle of wine, but also everyone’s income.”

Ronan and Zoe's fame in Provence, Lucas's connections, and Cerno's generous assistance have indeed improved Stella's market prospects considerably. Conservatively speaking, next year's production could be sold if it were half again as much as this year's.

However, Stella Artois' best-selling wines are table wines. It's difficult for them to make money with cheap rosé. The only way to change this situation is to launch a successful high-end product.

The prerequisite for this success is that 'Straussard' must break free from the perception of it as a 'cheap table wine' that people in Provence have held for over a decade, and associate the name with high-end quality.

Who doesn't want to make more money?
As Ronan said, with the same effort and time, others can reap ten or even hundreds of times more rewards than Stella.

But it's too difficult to promote rosé wine to the high-end market in Provence.

"The auction should mostly feature red and white wines, right?" Theo had worked with Lucas for a while and had some professional knowledge of the Provençal rosé wine market. "Not to be blunt, but we've already done a great job managing the table wine business. We're trying to get into the high-end market."

The outspoken Theo knew how obsessed Ronan was with rosé, so he swallowed his "don't even think about it" and unusually softened his tone:
"Anyway, let's work hard step by step."

"How slow? One year, two years, or three years?" Ronan looked at Theo with a smile. "By then, Lourmaran will have become Luberon's fourth cornerstone, while Stjesga will still be stuck in the same place. It will be even more difficult for us to do anything then."

After speaking, Ronan looked at Lucas, who remained silent.

He was worried that Theo's attitude was also Lucas's attitude, and that the two brothers had secretly formed a united front.

The quota system needs to be implemented by the market department, and he must persuade Lucas:

“Lourmaran is in the early stages of its ‘revival’. Stellar will gain access to many resources by growing alongside Lourmaran, such as massive exposure and a high-end clientele. Lourmaran cannot revive twice, and Stellar only has this one chance to move closer to the high-end market.”

It must be admitted that Astrid's first lesson to Ronan—'leveraging' and 'borrowing'—was extremely important.

Ronan really wished this lady could teach him a few more tricks.

Lucas lit a cigarette and said, without any emotional fluctuation:
“Tell me how this ‘quota system’ works. I’ve heard you mention it several times, but I still don’t understand what it’s like.” Ronan nodded and carefully explained it to everyone, word by word:
“We don’t have enough inventory right now, so we need to segment our customers and supply them with different levels of inventory based on a percentage of the available stock. Top-tier customers will receive 30% of the stock, including several Michelin-starred restaurants, luxury hotels, private resorts and high-end clubs in Provence. Lucas should know which ones I’m referring to.”

Theo answered before Lucas could:
"The supply volume of these channels you mentioned is not large to begin with, so giving them 30% is basically the same as no adjustment."

Ronan nodded:

"We must ensure that Stellar has sufficient exposure in high-end settings; this is an essential step in our transformation."

Seeing that no one spoke, Ronan continued:
"The second tier is for key clients, accounting for 40%, and includes high-end hotels, fine wine retailers, airlines, and cruise lines—"

Before Ronan could finish speaking, Theo interrupted him impatiently:
"Where do we have airline customers?"

They have attracted many cruise ship customers by the sea, but so far they have not partnered with any airlines.

Ronan smiled and shrugged:

"I believe you will definitely cooperate in Avignon."

After the wedding, Lucas was about to take Theo to open an inland market near Avignon.

Ronan looked at Lucas and patiently explained:
"Airlines are key to Starsk's future expansion into the global market, and also an important target for your trip to Avignon. I have some friends in Avignon, and I'll help if you encounter any difficulties along the way."

Lucas's connections are by the sea.

Ronan's connections were mainly concentrated around Avignon, where government officials in the Vaucluse department, Inés, and Astrid all lived.

Theo continued to ask:
"What about the other major clients? Are they in this category?"

Ronan shook his head firmly:
“No, normal distributors, the Lourmarin Rosé Wine Museum, and retail shops in the village, etc., can only get 30%.”

“No, no, 30% is too little,” Theo protested. “Our big clients will be angry. How are Lucas and I supposed to explain that?”

Ronan patted Theo's shoulder, trying to calm him down.
“Tell them that Stellaris has now implemented a ‘quota system.’ You don’t need to explain anything; your big clients will naturally understand why they’re getting so little. Have you forgotten what I said? The quota system is a standard supply logic adopted by high-end wineries; people in the industry will understand.”

“They understand the quota system, but they might not understand why Stella Garnier has suddenly become a high-end winery,” Lucas finally spoke, looking at Ronan. “If someone asks that question, how should we answer it?”

Ronan looked at Lucas and answered seriously:
“First, I made a bit of a splash in Papal Newcastle. The major distributors should have heard the news and guessed that Stellar wanted to shift towards the high-end market.”

During the auction, Ronan appeared on either side of Jackson like a leg accessory, and the smart guys naturally knew what that meant.

Ronan then continued:
"Secondly, you can take this opportunity to reintroduce Stella to them, I mean the new Stella, not the old one."

The young men sitting on the ground all looked up at Ronan with curiosity.

Introducing Stellaris?

Does this even need an introduction?

We introduce it to tourists every day.
Ronan's gaze returned to the village of Lourmaran deep in the valley, and he spoke slowly:
"The new St. Strasbourg will adopt the management and operation model of high-end wineries in Provence. In addition to the quota system, a futures pre-sale system will also be implemented. If you want to get more goods next year, you can pay a deposit now."

Before everyone could even process the sudden introduction of the 'futures pre-sale' system, another new system followed:

"The prepayment ratio has been increased to 50%, and the payment period has been shortened to 3 months."

It's not over yet.
"Next year, we will reduce the number of distributors and only retain regional boutique wine merchants as agents."

"We have implemented a membership system, and customers with strong purchasing power can get customized 1.5L and 3L models."

Cornell stared at him and asked:
"Huh? They're releasing large bottles of wine?"

A standard wine bottle has a capacity of only 750 milliliters.

Ronan raised his eyebrows and said:
"It's not just about large bottles; we'll also be launching artist-customized versions, signed versions, special barrel bottles, unique art bottle designs, gift sets, and even collaborations with other brands. In short, Stella Artois will definitely be the most distinctive wine brand in Provence in the future."

After speaking, Ronan looked at Lucas:

"Now, are the reasons sufficient?"

“I originally thought that the area around Avignon was full of tough nuts to crack, and that Theo and I would definitely be back soon, so I wouldn’t take Margaret with me this time.” Lucas stubbed out his cigarette. “Looks like I’m going on another long business trip.”

The new Stellar is pretty impressive!
Ronan not only spent three days drinking wine in Châteauneuf-du-Pape, but also learned a lot about the management methods of high-end wineries.

If you're going to do it, do it thoroughly and announce it to all of Provence—Straska is going to go the high-end route.

Ronan's experience in Châteauneuf-du-Pape made him realize that the high-end qualities of rosé wine are different from those of red and white wines and cannot be achieved through aging, which forced him to find another way.

Up to this point, he had come up with three solutions.

Artist-customized editions, signed editions, special original barrel bottles, special art bottle designs, gift boxes, and collaborations with other brands are just some of the options.

With so many artists and celebrities at his disposal, why doesn't he make use of them?
This process was very well-established in later generations, so he only needed to copy it.

The second method relies on the brewing technology provided by the system.

This September, he needs to produce a rosé wine with a sophisticated taste.

As for the third method...
After the general meeting in St. Scottish, Ronan leisurely strolled over to the Lourmaran government building.

Upon seeing Ronan, Sylvie nervously said:
"There's no room for discussion, you have to participate!"

Ronan pointed upstairs and asked:
Is Blanco here today?

Sylvie became even more nervous:

"Yes, but it's no use talking to Blanco. Blanco also supports your participation in the marathon."

Ronan walked up the stairs with a smile:

"I'm not here today to talk about competition slots. Perhaps you need sponsors?"

(End of this chapter)