Ramzi Ghosn, co-owner of Massaya, the boutique Franco-Lebanese wine producer, was holed up in his Tanail winery for the entire conflict. Now he, his brother Sami and their French partners have decided, for security reasons, to have a limited harvest. Massaya plans to make just one wine, a red, from the 2006 harvest, producing a mere 25,000 bottles. It is a symbolic gesture of defiance more than anything. Ramzi Ghosn speaks to Executive about the past two months and the immediate future.
E You remained at your winery during
the entire war. What was the motivating
factor that led to this decision?
The 1975 syndrome. In 1975, my family and I left Tanail, supposedly for one week and it took us 17 years to come back.
E You have decided not to have a full
harvest this year due to security concerns. What was the biggest fear that led you to make this decision? How will it affect the price of your other wines and will you change your distribution strategy in terms of imports and exports?
It will force us to reduce our aged wine stock. This is unfortunate. It is similar to selling family assets but what can we do? We have to use our resources to overcome the crisis.
E How do you think the war has affected the Lebanese wine industry, locally
and internationally? In 2005, Lebanon managed to turn crisis into opportunity.
Is there any way that Lebanese wine
producers can capitalize upon the
international sympathy generated
for Lebanon during the conflict?
Sure, if Lebanon carries on sending signs of western values such as tolerance and sophistication and people don’t get bored with our stories.
E Will the fact that you are making a very limited vintage in 2006 affect your brand locally and internationally?
No. Our concern is quality, otherwise we would have taken advantage of the drop in grape prices to increase production. Frankly speaking, if we want to maintain the quality, we have to cut our production. We have to admit honestly that we are not as well prepared as usual for a full-scale harvest and therefore we are downsizing the production but the objective is to maintain the quality, hopefully.
E Massaya has chosen not to be a
member of the Union Vinicole du LIban (UVL) but how do you think Lebanese wine producers should respond en masse to the effects of the conflict?
Unfortunately, the strength of Lebanon is in its individuals and not in its synergy. All efforts will remain privately-funded with private initiatives. I cannot foresee a move from wine producers and I expect individual opportunists dealing with the matter. In Arabic there is a popular saying: laoula badda tchati kanat ghaiamet. To start rain you have to see the clouds.
E There is a shortage of Syrian labor
in the country. How have you been able
to hire pickers for the harvest?
I prefer to call them nomads or Kurds and not Syrians because that is what they are. We hope that students and supportive Lebanese will help in the harvest this year. I believe that people are positively motivated to heal the scars of the war and they might be looking for a challenging experience that would allow them to contribute to Lebanon’s prosperity and sophistication.
E You have a trio of high-profile French partners. How did they respond to your decision to a) stay at your winery during the conflict and b) have a limited harvest?
In this company we rely on good judgment and experienced people to take decisions. The French partners relied on our best judgment for the company. I repeatedly told them that I was staying as long as I felt the threat bearable but ultimately I was prepared to evacuate. We kept a 4×4, the company car that we use for the vineyards, packed with valuables at the ready. I did not want to stay at any cost. I wanted to stay as long as I could take the pressure.
Honestly, MBA programs don’t have enough courses about “threat management.” Threat management is an extreme “crisis management.” I am confident that the most experienced and reliable people in this field are the Lebanese, not because we are more clever but unfortunately we are more experienced. Our French partners are willing to profit from our experience in this field.
The harvest was not an individual decision. It was reached after lengthy discussions. We are very concerned about quality and to preserve it we have to bring the challenge to acceptable limits
E Have you received any messages of government support or any indication
that there will be any kind of government compensation for losses?
Yes. We are preparing the file. It seems that compensation is for direct damages only, which were less than 20% of the incurred losses. There were $19,030 in direct fixed and current assets, $79, 200 in operational costs (the fixed costs that you have to disburse to carry on even if you are off, bearing in mind that during that period revenues were at zero) and opportunity costs, such as loss of sales, breach of sales and supply contracts, fairs and promotions cancellations.
E Three other factories next to you were destroyed: what was the extent of the damage you sustained? At any point did you feel that Massaya would be bombed?
In fact, it was four factories and the road in front of the winery. I was ravaged by this thought. I was imagining the military analyst somewhere in his office in Tel Aviv rushing to set the target coordinates because he wanted to join his girlfriend at a café. I thought, what if by mistake he picks us?
E Many wine producers are complaining that they found it difficult to import the raw materials they need to produce their wines. How much of a problem has this been for Massaya?
To start with, Massaya doesn’t use any enzymes and since 2003 we have not used imported yeasts. We generate indigenous yeast and we sustain it during the harvest. I believe that most wineries are worried about the yeast and we don’t have this concern. Our wines rely more on our terroir than on imported science.
Traditionally, we import French barrels but fortunately the barrels arrived ahead of the war along with a new harvest pump, our new acquisition of 2006.
E Conversely, how will the ongoing blockade affect exports? Will international agents lose patience?
Not yet, but we might have this concern in couple of weeks.
E Before the war you signed a distribution agreement with drinks distributor, Diageo, the first local producer to sign with the international company. Is this deal still in place?
Yes.
Those who want to take part to the harvest can contact Massaya between 8:00am and 4:00pm on 08-510135. They pay $15, including accommodation and full board for a hard day’s work on Sept 20th.
