Nova Cadamatre MW is a name synonymous with excellence and innovation in the wine industry. As the first female winemaker in the United States to earn the prestigious title of Master of Wine (MW), she has carved out an impressive legacy. With nearly two decades of experience, a degree in Viticulture from Cornell University, and recognition such as Wine Enthusiast's 40 Under 40 list, Cadamatre has worked in some of the most iconic vineyards, including the famed To Kalon in Napa Valley. Her accomplishments include crafting a wine ranked #6 on Wine Spectator’s 2022 Top 100 list and founding three female-owned wine brands.

Despite her remarkable achievements, Cadamatre is deeply aware of the systemic challenges facing winemakers, particularly those tied to the U.S. wine distribution system. She has experienced these obstacles firsthand as both a winemaker for a major brand and a small producer managing her own boutique labels.

The Challenges of U.S. Wine Distribution

For U.S. winemakers, distribution remains one of the most significant hurdles to bringing their products to market. Over the past two decades, the landscape has evolved dramatically, but not always for the better.

“Large producers still have challenges with distributors, particularly around consolidation,” Cadamatre explains. “They have more leverage than small producers, however, since they can afford to pay for sales staff to assist the distributor partners.” This leverage allows large brands to secure prime shelf space and greater visibility, but even they are not immune to the challenges posed by distributor consolidation.

For smaller producers, the situation is far more dire. “It’s cutthroat,” she says. “It’s challenging to even get a response sometimes. There were fewer brands 20 years ago, so now the fight for shelf space is even more competitive.” She notes that smaller producers cannot rely on distributors to actively sell their wines, particularly if they are part of a distributor’s extensive portfolio. “You have to do a lot of legwork yourself now,” she adds.

Fiadh Ruadh: One of Nova Cadamatre’s wines

The Impact of Distributor Consolidation

One of the most pressing issues is the consolidation within the distribution tier of the U.S. wine market. Larger distributors dominate the industry, and their focus on volume often leaves little room for smaller brands.

“Everyone knows that the real money is in volume,” Cadamatre observes. “It is more profitable for a distributor to make a four-pallet case-stacked drop with one visit than it is to go to 15 different restaurants and sell six bottles each.” For small producers who lack the ability to compete on price and volume, standing out becomes a monumental task.

To overcome this, Cadamatre emphasizes the importance of storytelling and quality. “Small producers must show their worth in other ways that are often not as immediately tangible,” she says. Distributors, even smaller ones, are increasingly selective about the brands they take on, making it essential for small producers to have both a compelling narrative and exceptional wines.

A Call to Wine Directors and Sommeliers

For wine directors and sommeliers, these distribution challenges offer both a responsibility and an opportunity. With many small producers unable to secure distribution in every state, your role as an advocate for boutique wines becomes critical. By directly sourcing from small distributors or supporting wineries with robust direct-to-consumer programs, you can introduce your patrons to distinctive, high-quality wines that might otherwise remain undiscovered.

“Small producers often rely on the support of sommeliers and wine directors to create demand,” Cadamatre explains. “When you champion a wine and tell its story, you’re not just selling a product; you’re giving that producer a chance to thrive in an extremely competitive market.” This advocacy can extend beyond the dining room to include collaborating with distributors to bring new producers into your portfolio or even lobbying for policy changes that make it easier for small wineries to reach your market.

Alternative Sales Channels

For small wineries, alternatives to the largest distributors are critical. Local and niche distributors can be valuable partners, but they still require significant effort. “Niche or local distributors are key for small brands if you are going to play in the distribution space,” Cadamatre advises. “You still have to put the time in to support the sales, so make sure you are prepared for that before signing up.” She recommends approaching distributors with a few pre-established accounts interested in carrying the wine to demonstrate partnership potential.

Direct-to-consumer (DTC) sales, however, remain the “lifeblood” of small wineries. “This is where you actually make full margin and can personally educate people about your brand,” she explains. While DTC sales offer unmatched profitability, they are not without challenges. Shipping regulations, licensing fees, and paperwork vary by state, creating significant barriers. “We have only been able to open up 13 states for Trestle Thirty-One,” she says, noting that high fees in some states make DTC sales unviable.

Image: Trestle 31

The Need for Systemic Change

Cadamatre believes that the current three-tiered system, which mandates the use of distributors, creates unnecessary obstacles for small producers. “The three-tiered system definitely creates challenges,” she says. “I’ve had restaurants interested in my wines, but because I didn’t have and couldn’t get distribution in that state, I lost the sale.”

For many small producers, the cost and effort required to establish distribution in certain states simply do not make financial sense. This is especially true in states with onerous paperwork requirements. Cadamatre suggests that a more flexible system could help alleviate these challenges. “I think it would be helpful to have some ‘small producer direct-to-business’ system for wineries selling less than a certain number of cases,” she proposes. Such a system could allow small wineries to sell directly to accounts without needing to establish full-scale distribution agreements.

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Looking Ahead

Despite the challenges, Cadamatre remains optimistic about the opportunities for small producers who are willing to adapt and persevere. “Be focused, patient, and persistent when targeting a particular state,” she advises. By combining quality winemaking, compelling storytelling, and strategic sales efforts, small wineries can carve out their place in an increasingly competitive market.

For wine directors and sommeliers, taking an active role in seeking out and supporting small producers not only enhances your program’s uniqueness but also contributes to a more diverse and vibrant wine industry. Through thoughtful partnerships and a commitment to telling the stories behind the wines, you can play a pivotal role in bringing exceptional, underrepresented wines to your audience.

Header Image: Nova Cadamatre MW; Source: Instagram

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