PRADOREY AND COVID-19
As we write these lines, the best grapes of this 2021 harvest are slowly arriving, promising to be a historic vintage in Ribera del Duero in terms of quality. Alongside them, a large group of wine tourists who did not want to miss out on this wonderful celebration that is the harvest, treading grapes with joy and masks, because even though it seems, and we believe, that the worst is behind us, these times still call for precautionary measures.
Watching the scene, one cannot help but think that the old normal, the real one, is returning to our lives. Looking back, without for a moment forgetting those who are no longer with us and all those who have suffered, we cannot help but celebrate that in our daily lives, just like in the vineyard, life always finds a way.
More than a year and a half have passed since this nightmare in the form of a virus began. Over 18 months in which we have lived through situations we never thought we would experience, many of which have probably changed many of our habits and routines forever. Economics is perhaps the most social science, making it impossible to separate what happens in our daily lives from the course of businesses. These have been difficult times but also a period of rethinking many things. Of driving change, but also of understanding that social responsibility, beyond being a branding tool, should be embedded transversally in the DNA of all companies. We are emerging stronger, with clearer ideas.
These are the principles that have guided us:
Strengthening the Vision: We have always liked the analogy between running a business and driving a car. The first thing to be clear about in both cases is knowing where you are headed. Often, in both business and driving, events occur along the way that force you to rethink part of your route, but the key, in our view, is to stay firm in the choice of the future you have envisioned for your company. In turbulent times, it is easy to lose direction or let fear take over, often opting for conservatism. In 2016, we decided to leave Rueda and focus on producing white wines in Ribera del Duero. A gradual transition was planned, culminating in the expansion of our winery and the planting of a new vineyard (Los Quemados) in Real Sitio de Ventosilla in 2020. Despite the immense difficulty of the moment and doubts about whether to postpone investments, we decided to move forward. Our commitment to terroir, to making high-quality wines with added value, had to be stronger than ever because only in this way could we generate more wealth and jobs in the short and medium term. In 2021, we also planted a new vineyard, Las Tasugueras, destined to produce grapes of extraordinary quality that will continue to help us grow. The more difficult the times, the more important vision becomes.
Never Waste a Good Crisis: This phrase is attributed to Churchill, but for us, it has been a mantra we have kept in mind. Every economic downturn has a cathartic element and brings new opportunities. It is essential to stay alert and reevaluate everyday aspects of your business model. However, our experience tells us that crises mainly accelerate changes that were already underway. PRADOREY was a pioneer in 2016 in creating an in-house eCommerce department and proactively entering Amazon. When the tsunami hit in March 2020, we were prepared to ride the wave. Our firm commitment to this channel allowed us not only to fulfill our value proposition during the worst moments of the supply chain collapse but also to enhance our service to unprecedented levels. Today, more than 6,000 customers regularly buy from our website, and we can deliver in under 30 minutes in some of the country’s major cities.
But this “opportunity” presented by the crisis was not just about our customers. At PRADOREY, we had already begun promoting flexible working arrangements in 2010 and, in some cases, implementing remote work. The events of 2020 forced us to be much more proactive in our work-life balance measures, facilitating remote work wherever possible. In a rural setting, this was extremely challenging, but it worked successfully. In this new phase, we have adopted a hybrid model where employees have some freedom to structure their weekly schedules. At PRADOREY, we believe that family is a valuable asset that should be supported, and during this time, we have done our best to contribute.
For those workers who could not work remotely, we established a COVID protocol to protect our employees as much as possible, providing training to 100% of our staff to promote best practices and prevent contagion. Additionally, regular testing was conducted for all employees.
This challenging situation has also reinforced our commitment to society. If we had already been active in supporting various causes, during the pandemic—especially at its onset—we donated materials (gowns, caps, etc.) to different hospitals and local centers. No company can survive disconnected from the society in which it operates.
The Worst Decision Is the One Not Made: When our country opted for a strict lockdown, many distributors requested payment extensions. Not only did looming uncertainty cast a shadow over sales in hospitality and many of our export markets, but also, overnight, revenues we had counted on suddenly became uncertain.
The first decision we made was to support our employees. We would find creative solutions, but we would count on everyone when things returned to normal.
The second was to support all distributors who requested assistance, understanding that relationships with strategic partners should never be purely short-term.
Balancing this was no easy task, but today, we can proudly say that we maintained pre-pandemic employment levels and that our distributors also made it through. We also appreciate all the public institutions that supported us during this time. In difficult situations, there is a temptation to delay decisions and hope the storm passes quickly. In our view, the worst decision is the one not made.
PREPARE FOR THE NEXT CRISIS: Crises are unpredictable; they simply arrive. One of the challenges of economics is that modeling reality is incredibly difficult. Yes, under normal circumstances, you can estimate GDP growth or unemployment trends, but unforeseen events frequently disrupt all projections. So, it’s best to accept that the economy is cyclical and that global events inevitably impact it. If we add to this the inherent unpredictability of running a business, one can understand why leading a company is both fascinating and complex.
Unexpected things happen in life, but we all know the fable of the ant and the grasshopper. As we celebrate the return to normal, we are already preparing for the next crisis, knowing that after the sunshine, another storm may come. Soon, we will launch our 2022–2026 strategic plan, which aims to solidify PRADOREY as a benchmark in Ribera del Duero, attract talent, turn customers into fans, and most importantly, contribute to society. Today, more than ever, that is essential.