How I Launched a Sparkling Wine Services Business - #1

Bruce Lundquist at Team Meeting

Entrepreneur Bruce Lundquist describes the long and winding road to founding a sparkling custom wine services business. 

Why Bruce?

He and his business partner Rebecca Faust changed the landscape for sparkling wine, making “small grower sparkling wine” possible in Northern California. They founded Rack and Riddle, a custom crush operation focused on sparkling wine.

Bruce is one of the “people behind the sparkle” for many small wineries that now have a way to make Methode Champenoise sparkling wines. Prior to the creation of Rack and Riddle, making bubbles was only practical for large wine companies who could afford the huge capital investment in the equipment needed to make sparkling wine.

Bruce has been involved in sparkling wine since 1996 when he joined J Vineyards, where he quickly moved to the role of general manager. He and Rebecca launched Rack and Riddle in 2007. They have produced tens of millions of bottles of sparkling wine. If you love sparkling wine, I’m certain you’ve had a bottle made in their facility.

Here is Part 1 of my conversation with Bruce.

Nursery to Dairy to Wine

Vicky

You started in the nursery business in Portland and then worked in the dairy business in Oregon and California before moving to sparkling wine. Is there a common thread?

Bruce

I really do like ag. I like the people I've met in agriculture. They’re genuine. There are a lot of handshake deals. You have a cup of coffee and chat things out instead of relying on papers and lawyers.

From Finance to General Management

Vicky

You started as a finance guy. How did you move into general management?

Bruce

When I was interviewing for the job at J Vineyards, Judy Jordan (owner) asked me where I saw myself in five years. I told her, “I want you out of your office enjoying the benefits of being an owner and I want to be in your office taking care of the operations.” She was a little startled because she was hiring me as a business manager but after several months, she made me the General Manager.

The Launch of Rack & Riddle

Vicky

You and Rebecca [Faust] created a new landscape for sparkling wine when you launched Rack & Riddle. Tell me how it came about.

Bruce

When I was at J [Vineyards], we were in the process of buying the Piper Sonoma facility. Rebecca, who was CFO for Piper Sonoma, was on the other side of the negotiating table. In fact, she is fond of saying I put her on the unemployment line when we completed the transaction.

We became friends and over the next ten years I would call her every so often and say, “We should start a business together.” I eventually wore her down like water on a rock and after ten years she finally said she was ready to consider it. We started looking for a project in 2006.

Bruce Lundquist and Rebecca Faust, Founders of Rack & Riddle

Vicky

So, it was your idea to launch a business?

Bruce

Yes, and Rebecca came up with the idea of doing custom crush. We started chasing that idea and it morphed into custom sparkling because no one was really doing that.

Vicky

I’m so glad you did! We [Amista Vineyards] made our first sparkling wine with you in 2008 and have been working with you ever since. So, what happened next?

“I can tell you that if we had not launched the business, we would have bankrupted both families.”

Bruce

In the summer of 2006, we found a facility in Hopland. We put a hold on the property with whatever money we had in our savings accounts. We closed on the property about nine months later after we arranged financing, ordered equipment, and started lining up business opportunities. A lot of different people took a risk on us.

We closed on the property on May 1, 2007, which was the day we officially started Rack & Riddle. I can tell you that if we had not launched the business, we would have bankrupted both families. Everything we had was tied up in the business and we had loans and obligations that went well beyond our net worth. We didn’t have the means to pay back those loans.

What I Wish Everyone Knew About Sparkling Wine

Vicky

I’m glad you succeeded! Let’s shift gears a little. You’ve now been in the sparkling wine business for over three decades. What do you wish everyone knew about sparkling wine?

Bruce

It shouldn't just be for celebrations.  Sparkling with a meal is appropriate any time; treat it like you would a still wine. I find it hard to believe when it’s 85 degrees outside, why wouldn't you want a nice, chilled glass of sparkling with your chicken salad or barbecue? It’s refreshing!

  All images courtesy of Rack & Riddle

Check out all my conversations with Bruce.