Case Study Frog's Leap Winery
The premium wine industry in the Napa Valley area is an area saturated with wineries and vineyards of various sizes. With a growing number of green consumers causing the development of the LOHAS (Lifestyles of Health and Sustainability) demographic segment, many wineries are looking for ways to gain a competitive edge by differentiating their brands and reducing costs. Frog’s Leap Winery has been able to stand out with its tasty wine and “sophisticated environmental management system (EMS)” (C392). Sustainability can be defined as business practices that both meet the needs of the present and don’t compromise meeting the needs of the future. Environmental sustainability involves deliberate actions that protect the environment, provide longevity of natural resources, maintain ecological support for the future, as well as guard against the endangerment of the planet.
Sustainability and the Triple Bottom Line
Frog’s Leap Winery has made every effort in its daily activities and operations to tackle sustainability and the triple bottom line of measuring their
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For example, dry farming, creating their own compost, not paying to have their waste hauled away, and the use of their new geothermal and solar energy system. These savings, as well as changes to their sales through traditional distribution channels, allowed Frog’s Leap to remain mainly profitable during the 2009-2010 recession. Value adding activities for customers, such as a “wine-by-the-glass” program, a tasting room, and wine club, increases the purchase of wine and decreases the costs of bottling wine. Founder and CEO John Williams commented that the company is “a thriving business with above average margins and below average operating expenses. Our cost here for making a bottle of wine is equal to or less than that industry average”
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