Cameron Hughes: Quality wine at Costco Price. Links to a short video and two news articles about Cameron Hughes wines are included herewith. Cameron Hughes is a wine merchant (and is one of Costco's s

2/5/2016 Cameron Hughes Wine's Innovative Business Model | Inc.com http://www.inc.com/jon-burgstone/cameron-hughes-wine-innovative-business-model.html 1/4 CASE STUDIES S q u e e z e  M o r e  J u ic e  O u t o f Y o u r B u s in e s s  M o d e l T o o m u ch p re m iu m p ro d u ct, n o t e n o u g h d e m a n d ? H o w o n e in n o va tive w in e ry ca m e u p w ith a p ro fita b le so lu tio n . jburgstone @ , BillMurphyJr @ It's a re a l p ro b le m th a t's p la g u e d a n in d u stry fo r a lo n g tim e : to o m u ch p re m iu m w in e , a n d n o t e n o u g h cu sto m e rs to p u rch a se it.  O ka y, th a t m ig h t n o t se e m like a p ro b le m to m o st o f u s. If it w e re , w e 'd h a ve a n e a sy, five -le tte r so lu tio n (p a rty!). B u t fo r h ig h -e n d vin e ya rd s it's a re a l d ile m m a . T h e re 's a w in e g lu t o u t th e re . T o o m a n y w in e rie s p ro d u ce to o m a n y g o o d g ra p e s, a n d th u s ru n th e d a n g e r o f d rivin g d o w n p rice s. N o t o n ly is th a t b a d fo r th e ir b o tto m lin e in th e sh o rt te rm , b u t h ig h -e n d w in e rie s d e p e n d o n th e ir p re m iu m im a g e . T h a t ca n va n ish q u ickly if th e y d isco u n t th e ir p rice y la b e ls e ve n te m p o ra rily.  BY JO N BURG STO NE BY BILL M URPHY JR. 2/5/2016 Cameron Hughes Wine's Innovative Business Model | Inc.com http://www.inc.com/jon-burgstone/cameron-hughes-wine-innovative-business-model.html 2/4 E n te r C a m e ro n H u g h e s: a S a n F ra n cisco -b a se d e n tre p re n e u r w ith a p ro fit-m a kin g so lu tio n fo r th e w in e in d u stry. B e sid e s b e in g a p re tty co o l sto ry (a n d a h e lp fu l tip , if yo u 're in to w in e ), h is e xp e rie n ce m ig h t p ro vid e yo u w ith so m e g o o d id e a s in w h a te ve r in d u stry yo u r e n tre p re n e u ria l b ra in sto rm in g ta ke s yo u . H o w d o yo u tu rn o n e m a n ’s p ro b le m , in to yo u r so u g h t-a fte r, p ro fita b le p ro d u ct?   H u g h e s a n d h is w ife a n d b u sin e ss p a rtn e r, Je ssica K o g a n , ru n a n e p o n ym o u s co m p a n y, C a m e ro n H u g h e s W in e . O n e o f th e ir p ro d u ct lin e s is ca lle d th e “L o t S e rie s.” R a th e r th a n te n d th e ir o w n g ra p e s a n d m a ke th e ir o w n w in e , th e y b u y e xce ss sto ck fro m u ltra p re m iu m vin e ya rd s a n d se ll it u n d e r th e ir o w n la b e ls. W h a t m a ke s th e m d iffe re n t is th a t th e y d o n 't b le n d th e w in e s, b u t th e y a lso sig n co n fid e n tia lity a g re e m e n ts n e ve r to re ve a l w h ich lo ts co m e fro m w h ich w in e ry.  C h e ck o u t th e ir w e b site , a n d yo u 'll se e p ro d u cts su ch a s, "L o t 2 4 6 (2 0 0 9 N a p a V a lle y C a b e rn e t S a u vig n o n )," a n d "L o t 2 6 9 (2 0 1 0 S a n ta B a rb a ra C o u n ty S a u vig n o n B la n c)." F o r cu sto m e rs, it ca n tu rn in to a tre a su re h u n t, w ith co n su m e rs h o stin g d in n e r p a rtie s a n d w in e ta stin g s a t w h ich g u e sts try to g u e ss w h a t w in e th e y're re a lly d rin kin g . S o m e fo lks re a lly g e t in to it a n d b u ild co lle ctio n s; so m e lo ts a re co n sid e re d "le g e n d a ry" b e ca u se p e o p le m ig h t th in k th e y're d rin kin g su rp lu s S cre a m in g E a g le (w h ich n o rm a lly se lls fo r th o u sa n d s o f d o lla rs a b o ttle ) fo r $ 1 5 .  S o m e tim e s, a se co n d a ry m a rke t ca n e ve n d e ve lo p . M e a n w h ile , th e h ig h -e n d vin e ya rd s ca n g e t rid o f th e ir e xce ss g ra p e s a t a p ro fit w ith o u t d e stro yin g th e ir b ra n d s o r u n d e rm in in g th e h ig h -e n d m a rke t. W in -w in , a ll a ro u n d .  T h e b u sin e ss se e m s to b e d o in g w e ll. C a m e ro n to ld u s th e co m p a n y so ld a b o u t 4 0 0 ,0 0 0 ca se s o f w in e in 2 0 1 1 . H e a lso sa id th a t, tw o ye a rs a g o , a sin g le sto ry in th e W a ll S tre e t Jo u rn a l co n trib u te d to th e co m p a n y co m p le te ly se llin g -o u t o f a ll o f th e ir h ig h -e n d C a b e rn e t S a u vig n o n – to th e tu n e o f $ 2 M M .  B e fo re th is illu stra tio n te m p ts u s to ca ll it a d a y a n d o p e n a n ice b o ttle o f re d , w e th in k th e re a re tw o ke y ta ke a w a ys fo r 2/5/2016 Cameron Hughes Wine's Innovative Business Model | Inc.com http://www.inc.com/jon-burgstone/cameron-hughes-wine-innovative-business-model.html 3/4 The opinions expressed here by Inc.com columnists are their own, not those of Inc.com. e n tre p re n e u rs in th e C a m e ro n H u g h e s e xa m p le .  F irst, re so u rce s a re a lw a ys re la tive .  E n tre p re n e u rsh ip isn 't a b o u t g a th e rin g re so u rce s; it's a b o u t d e m o n stra tin g b e tte r u se s fo r re so u rce s th a t a lre a d y e xist, re g a rd le ss o f w h o o w n s th e m . T h is p o in t m ig h t se e m se m a n tic w h e n w e 're ta lkin g a b o u t re so u rce s th a t p e o p le u n ifo rm ly va lu e --- like m o n e y fo r e xa m p le . It b e co m e s a b it m o re o b vio u s w h e n w e ta lk a b o u t re so u rce s th a t m ig h t h a ve e n tre p re n e u ria l u tility, b u t th a t a re n 't so o b vio u s a t first b e ca u se th e y're n o t u n ifo rm ly va lu e d . (H e re 's a le ss a p p e tizin g e xa m p le : tu rn in g th e g re a sy, le fto ve r co o kin g slu d g e fro m fa st fo o d re sta u ra n ts in to b io fu e ls.)  S e co n d , g re a t e n tre p re n e u rs cro ss-p o llin a te .  A s w e e xa m in e in o u r n e w b o o k, B re a kth ro u g h E n tre p re n e u rsh ip , e n tre p re n e u rs ra re ly n e e d to co m e u p w ith a n o rig in a l id e a co m p le te ly o u t o f th e b lu e . O fte n , it ca n b e b e tte r to lo o k fo r in cre m e n ta l ste p s fo rw a rd , o r e lse to try to cro ss-p o llin a te tw o (o r m o re ) a cce p te d id e a s o r in sig h ts---sa y a p ro ve n b u sin e ss m o d e l fro m o n e in d u stry a n d a m a rke t w ith w h ich th e e n tre p re n e u r h a s fa m ilia rity. S o , fo u n d e rs m ig h t fin d su cce ss w ith , sa y, "th e M cD o n a ld 's o f la u n d ro m a ts," "th e e B a y o f p ro fe ssio n a l se rvice s," o r "th e A irb n b o f ca r sh a rin g ," o r th e like .  S o , h e re 's yo u r ch a lle n g e fo r to d a y: C a n yo u co m e u p w ith a n o th e r in d u stry in w h ich th e C a m e ro n H u g h e s m o d e l m ig h t p ro vid e a n o p p o rtu n ity? P o u r yo u rse lf a g la ss o f w in e a n d m u ll it o ve r. A n d w h a t a b o u t th a t in sid e r’s tip fo r w in e -lo ve rs? W e a ske d C a m e ro n w h e th e r th e re a re a n y g re a t w in e s in th e L o t S e rie s th a t cu sto m e rs m ig h t h a ve o ve rlo o ke d , a n yth in g re a lly sp e cia l th a t h a sn ’t ye t ca u g h t-o n . H is a n sw e r: L o t 2 6 3 , a “p h e n o m e n a l b o ttle .” M O R E : 7 C reative O ffice D esigns to G et Y ou Inspired for 2016 Judge a N ew C om pany in 15 S econds A N avy S E A L's S ecret for P ushing Y ourself W ay B eyond Y our (S upposed) Lim its S ausage vs. M eatballs: A S tart-up Fable The Free M oney B usiness M odel PUBLISHED ON: APR 24, 2012 2/5/2016 Cameron Hughes Wine's Innovative Business Model | Inc.com http://www.inc.com/jon-burgstone/cameron-hughes-wine-innovative-business-model.html 4/4 PUBLISHED ON: APR 24, 2012