4 minute read
Managing Director Review
By any measure, 2020 was an extraordinary year and, against that challenging backdrop, we hope you and your families are staying healthy and safe. We thank you for your ongoing trust in Opimian as we navigate these difficult times.
The COVID-19 pandemic has had an adverse impact on economies, households and businesses —and the wine industry around the world. While we could never have predicted the nature or extent of the crisis we currently face, Opimian has responded by improving its operations and, as a result, its finances.
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The pandemic hit Canada with full force exactly four weeks after we assumed the stewardship of Opimian. As a result, we came to learn the strengths and weaknesses of the business very quickly. Areas of strength were immediately obvious, while areas of weakness amplified and required prompt attention and decisive action. What became evident early on was the strength and resilience of our people and the professionalism they exhibited as they transitioned to a work-fromhome model that was expected to be temporary but has lasted for the entire year and beyond. As we write this, we are convinced that we have the right team and that we are poised to exceed Member expectations.
We all know that Opimian has experienced a combination of internal and external challenges over the last few years. These challenges required us to take a hard look at the business, and as many of you know, we bring a unique perspective to the organization. We were Members first, then volunteers, and now Managing Directors. We share your passion for wine. As such, we know that the best way forward is to look after our Members, employees and winemaker partners better than anyone else can.
THE 2020 REFRESH
Our first priority was to assess each and every aspect of your Club. There was a myriad of programs created over the past 47 years. Some remain essential to the Club’s business model. Others had run their course. While the decisions were hard, programs like the Area Representatives and the Wine Review, as well as the Discovery and Select Plus subscriptions were eliminated, improved or reimagined. Other decisions were easy. We integrated the Vino Etcetera Magazine into the Cellar Offering. Reducing the amount of wasted plastic and paper, and saving money in the process, spoke to our commitment to sustainability.
MICHAEL LUTZMANN C0-MANAGING DIRECTOR
We re-introduced Canadian wine and, at the same time, tested new ways to distribute. The future may hold a combination of Liquor Boards and DTC (direct to consumer) shipping. We enhanced our Member Experience by making Member Service more responsive, offering Riedel glassware and relaunching Member incentive drives. We lowered the price of many wines and added more selection than ever before. This includes more hard-to-find and niche wines and premium offers. You’ll also notice a far broader range of pack sizes to suit your preference.
We proactively engaged with many of our winemakers for the first time in recent memory. As a result, we have been able to expand our focus on telling the stories of our winemaking partners while strengthening the connection between you and these incredible people.
You will have seen The Masters Case (TMC), a new subscription program that includes a virtual tasting with Jane Masters MW, our Master of Wine. Literally hundreds of informative and fun videos built around our winemaking partners have been added to the website, the blog and the social media channels. The event program pivoted to virtual as we added Zoom tastings and expanded on our social media activity. The TMC and Founders Choice subscription programs have become so popular with Members that we have had to go back repeatedly to our partners and secure more wine. These two subscription programs remain the largest wine programs of their kind in Canada and continue to grow.
We added more new Opimian Members to the Club in 2020 than at any point in the last five years, yet we believe we have more hard work to do in educating new Members and making it easier for them to become part of the family. While we have stemmed the tide of Members choosing not to renew, there is still work to be done. It is a strategic priority of ours moving forward.
The dividend of all of this hard work in 2020 is that we are pleased to report that in our first year as Managing Directors, we have erased the operating deficit that existed in Q1 2020 and finished the year with an operating surplus. It is a privilege to have earned the trust of your Board of Directors and, by extension you, the Members, as we look to the future. Stay tuned for continued improvement and growth. Thank you for sharing the joy of wine with us.
