Small Biz

Jake Kloberdanz, 24

Hope Wine
Newport Beach, Calif.

Forget "cause-related marketing." Sure, Jake Kloberdanz knows that the success of such campaigns is hard to deny. He cites the example of Campbell Soup (CPB) doubling its sales from the previous year when it printed pink ribbons on its packaging to celebrate Breast Cancer Awareness Month. But Kloberdanz, who was the philanthropy chair of his fraternity at Berkeley's Haas School of Business, wants to create a brand that donates to charity year-round. That way, he reasons, the brand isn't cheapened and customers have another compelling reason to buy the product.

In June, 2007, Kloberdanz launched Hope Wine, a winery that gives 50% of the profits from sales of its wines to charity. The wine, which starts at $13, has already won awards. The eight-person company doesn't actually make wine itself: The chardonnay, merlot, and cabernet are produced and bottled by a partner, Sonoma Wine, allowing the Hope Wine staff, each of whom own a small share of the company, to concentrate on distribution and marketing. Kloberdanz, who worked for E&J Gallo Winery for a year and a half, says Hope Wine is available in about 100 locations, mainly restaurants and independent stores, though Whole Foods (WFMI) sells it in a few locations, and a deal set to go through by November with Costco (COST) could mean distribution in Southern California.

Kloberdanz says Hope has donated $20,000 to charity since launching, and he estimates revenues of $3 million to $5 million in 2008.