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If you’ve never considered a winery as a model for understanding the complexities of today’s business environment, you may be surprised at what you can learn from Carlos Creek Winery in Alexandria, MN.

This award-winning winery is the largest wine producer in the state, the largest sparkling wine producer in a multi-state area, and the only Midwest winery with the ability to produce single-serve bottles. The elimination of wine waste offered by single-serve bottles has opened the door to restaurant placements and a contract with the Xcel Center to be the sole provider for wine miniatures at the St. Paul arena's Minnesota Wild hockey games and other events. Positioning themselves as the “Official Wine of Minnesota Fun,” Carlos Creek Winery has become a lake country destination for a wide range of customers.

But this success didn’t come easily. Kim and Tami Bredeson, new to the farm winery industry, purchased Carlos Creek Winery in 2008 amidst the financial crisis. In their first year, the Bredesons didn’t meet any of their budgeted projections for the business. Their enthusiasm and business savvy, in ample supply, simply weren’t enough to overcome widespread joblessness and high gas prices. It was a full 18 months before they reached the sales level the previous owner had experienced upon exiting the business.

Tami Bredeson credits determination and a decision to lean into the business during the recession for today’s success. “We made a lot of tough decisions and changes to the business when we took over, and we pushed through the hard times by building for the future,” she said.

She also highlights the role Bremer has played in the winery’s success over time. The Bredesons were drawn to Bremer’s relationship-focused business model, and wanted to work with a bank with a local presence. “There’s an ease of working with Bremer – and an enthusiasm for who we are that’s been there from the beginning. They’re also quick to tell us when something doesn’t add up, and we want both of those things from our banking partner,” Bredeson said.

It becomes evident, from the first moments in Bredeson’s presence, that she has a firm grasp of business leadership, operations, marketing and customer engagement. As the former head of marketing for Border State Banks in northern Minnesota, she brought decades of experience in business to the role of winery owner.

With 20 full-time and 25 part-time employees, the Bredesons focus on a simple but essential formula: hiring the best people, training them well, and engaging them in the business. And that commitment is shared by Tyler and Michelle Bredeson, the Bredesons’ son and daughter-in-law, VP, Operations and VP, Marketing, respectively — as well as the future owners of Carlos Creek Winery.

In preparation for Tyler and Michelle’s eventual takeover of the business, the two Bredeson couples run the operation as a foursome. The younger Bredesons live on the winery property, in a new home that complements the current surrounding buildings — and the design of the future 22 Northmen Brewing Company, slated to open in June 2019. The addition of the brewery, sparked by Tyler and Michelle’s passion for brewing, will further position Carlos Creek as a destination.

But not all decisions in a family-run business come easily, according to Bredeson. “You have to allow the next generation to make decisions, yet they need to respect that some ideas are simply not right yet. That can be tough, requiring the constant reminder that this is business — not personal,” she said.

Take, for example, the popular Minnesota Nice brand of wines created by the Bredesons when they took over the winery, including Hotdish Red (the first wine in this line and the winery’s bestselling wine of all time), You Betcha Blush, and Wobegon White. “Tyler told us this line wasn’t hitting the mark with millennials, even though it was selling great with our older customers,” Bredeson shared.

The Bredesons listened to their son, and spent two years working with him and head winemaker Russ Funk to develop their new Calisota wine, a blend of California and Minnesota grapes at a lower price point designed to meet millennials’ expectation for non-pretentious wine that is simply enjoyable to drink.

To design the label, Bredeson gave everyone on the staff $20 to purchase a bottle of wine based solely on its label design. The differences between millennial and boomer employee selections were stark, with millennials choosing minimal color and interesting texture, and boomers choosing intense color. The resulting Calisota label is black with an eye-catching yet simple copper and beige foil design. And during its launch period, in-store sales of Calisota outpaced sales of Hotdish Red, even as sales of Hotdish Red held steady.

The Bredesons acknowledge that a family business isn’t for everyone. “You can’t assume that your kids want to do your business in the first place. You have to have open conversations about that,” Bredeson advises. The Bredesons’ other son, Sam, is not involved in the business – though he was married at the winery this past summer.

More than 50 weddings a year take place at Carlos Creek Winery. While 80% of the couples who marry there have some sort of connection to the general area, less than 10% are from Douglas County. The winery is often chosen by couples with roots in the Twin Cities and Fargo as the perfect “in-between” destination, but has been chosen by couples as far away as Arizona. In addition to beautiful outdoor options for weddings and receptions, the Bredesons transformed a large horse stable into a modern events venue that includes space for seating up to 400 guests and beautiful woodwork handcrafted by Kim. The addition of a loft in the brewery will create even more options for wedding couples beginning next June. The Bredesons are hoping to extend their wedding season to the winter months, and to attract more LGBT, Jewish and Hispanic couples.

In addition to weddings, Carlos Creek is known for its annual Grape Stomp, which occurs on the second weekend after Labor Day and attracts over 15,000 guests. Teams compete against each other to stomp the most juice from grapes brought in from California specially for this three-day event.

The 2018 crop of Minnesota grapes at Carlos Creek will be the biggest the Bredesons have ever produced. A recently purchased harvester will be used for the first time on the 75,000-pound crop. “We called Brent [Iserman, Bremer Bank region president] on a Sunday to make the decision about making the purchase of the used harvester, and he enthusiastically gave us the go-ahead,” Bredeson said.

The decade-long relationship between Carlos Creek Winery and Bremer Bank continues to grow from a strong foundation of mutual trust and respect — and a shared passion for fulfilling a family’s dream of working hard to create products and experiences that bring people together for celebration and fun. We’ll drink to that!