Family Ties
LAP OF LUXURY
WITH A LUXURIOUS RESORT AND WINERY, A ONE-OF-A-KIND SPORTS CAR, A WORLD-CLASS RACING TEAM AND MORE, THE PANOZ FAMILY ALWAYS GOES AT FULL SPEED.
BY BROOKE PORTER
TO UNDERSTAND WHY Chateau Élan and Winery, Panoz Motor Sports Group, Panoz Auto Development, Élan Motosport Technologies and Road Atlanta—owned by the Panoz family and located in Braselton, Georgia— are all successful enterprises, one must start at the beginning: a man by the name of Don Panoz.
Known as Dr. P, Panoz began his entrepreneurial life by pioneering the nicotine patch, moving his family to Ireland to start Élan Pharmaceuticals because regulations weren’t as strict. (Élan, Panoz explains, is a French word meaning “with energy, a little style, panache.”) In the early ’80s, Panoz and his wife, Nancy, visited Georgia and happened to buy muscadine grapes at a roadside stand. Ever the dreamer, the seed for his next idea was planted. Chateau Élan and Winery opened in Braselton, 45 minutes north of Atlanta, a few years later. Th e 3,500-acre AAA Four-Diamond destination on the rolling hills of north Georgia is not only home to the state’s largest producer of wine, but also the 322-room Inn at Chateau Élan; a 25,000-square-foot, state-of-the-art conference center; 63 holes of championship golf; an award-winning spa; various dining establishments; and Th e Estates, a private residential community.
Tony Mastandrea, CEO of real estate and private memberships, says the biggest challenge the company faced in the beginning was naysayers’ “you’re going to build what, where?” attitude. “I think we’ve proved to these folks that it was a great vision,” he says. “Chateau Élan put Braselton on the map.”
Henk Evers, president and CEO of Chateau Élan, agrees. “We’re a unique destination,” he says. “Where can you find a winery, hotel, conference center, spa and golf, all in the same 3,500 acres? And, close to the largest airport in the world [and] a vibrant economy?”
But Chateau Élan’s uniqueness is only part of the reason it has flourished. Ask the top executives, and each will tell you: It’s the people. Mastandrea recognizes Panoz, while Panoz praises Nancy and her dedication to their 52-year marriage. Likewise, Evers takes no credit for the accomplishments of Chateau Élan, which in 12 years has increased its revenue from $12 million to $50 million.
“It comes down to having the right people in the right jobs,” says Evers, who knows every one of his employees by name. “If I get hit by a truck tomorrow, the hotel will still open because… I can rely on the staff to do what has to be done.”
And the resort is still growing. A $20 to $30 million expansion is in its planning stages, which will add 132 rooms, a 12,000-square-foot ballroom, more spa suites and 37 golf villas.
CHATEAU ÉLAN is only a piece of the puzzle. Panoz’s son Danny was also born with an entrepreneurial spirit. His dream? To hand build a front-engine, rear-wheel sports car in America. It might not sound like a loft y goal, but at the time—and still today—sports car enthusiasts looked to Europe for the best. “We’ve had to play catch up with some brands who have had 60 years to get it right,” Danny says.
More than just getting it right, Panoz Auto Development—the only small-volume sports car manufacturer in the US—has passed with flying colors. Its first model, the Roadster, was released in 1990, and in the model year 2000, the company unveiled the Esperante, the only two-seat sports car in America that can hold two sets of golf clubs. Th e car is also in the top 1% of the safest vehicles sold in America.
“Th e biggest challenge was getting our philosophy and methodology right,” Danny says. “We could have short-cut a few things, but we wanted to be a fully certified car. People think if you’re small, you get a break, but you don’t.”
Panoz proudly boasts, “Danny had a commitment to create a hand-built American sports car, and I applaud him for taking on that challenge.” And, like any father, he made one little suggestion: race the Esperante.
Panoz believed that in order for the brand to get noticed worldwide, it would have to race against—and beat—the Ferraris and Porsches of the world. So in 1996, the competition division, Panoz Motor Sports Group, was born.
In 1997, the first racecar—the Esperante GTR-1—was completed. Panoz had the means to give the motor sports division another push: He purchased Road Atlanta, a Braselton racetrack that was in dire need of a facelift . Next, inspired by France’s 24 Hours of Le Mans—which, according to Scott Atherton, president and CEO of PMSG, is the most highly regarded and significant sports car race in the world—Panoz started a version right here in the US: the 10-hour Petit Le Mans.
Th is race gave birth to yet another part of the Panoz conglomerate: the American Le Mans Series. Comprised of 12 races at tracks across the nation—some of which are also owned by Panoz—the ALMS features some the best teams and drivers on a global scale.
Atherton stresses that racing is about more than just branding. “At a time when [the media] have content about the need for alternative fuels and automotive technology, as a racing series, we’re perfectly positioned to provide that,” he says. “Th e technology that’s being developed for the racecar today is what will be applied to the road car that you and I will drive tomorrow.”
These technological advancements are another area in which Panoz Auto Development excels, via its manufacturing division Élan Motosport Technologies. Recent achievements include the successful launch of the next generation Champ Car and receiving ISO9001 certification, which enables the company to build for military defense contractors and airplane companies.
Not bad for a company based in Braselton. “Many people assume that since we’re based [here], that we can’t possibly be capable of providing what they need,” Atherton says. “And then when they see the facility, meet our people, look at examples, the most common response is, ‘Wow, I had no idea. Th is is the most underreported business story of this industry.’”
LOOKING BACK, DR. P says, “In a journey of building a company, there are many times you come to forks in the road that put you off in a diff erent direction. At the end of the day, if you haven’t hit a dead end, I think it’s a success.” No analogy is more relevant for the Panoz family. Not only are they far from hitting a wall, the race is theirs to win.
THE SECRETS TO THEIR SUCCESS
Cutting-edge technology. World-class racing. Sleek sports cars. A luxurious resort. The company’s top executives reveal how this is all possible.
UNDERSTANDING & COMMITMENT
“If you have a commitment and understanding and the willingness to do what you need to do to make it work, the money will take care of itself.” –Don Panoz
STAY DETERMINED
“You have to be stubborn. You just have to stay at it, day in and day out.” –Danny Panoz
LISTEN TO YOUR CUSTOMERS
“You have to be open to feedback. A lot of people in business forget that at the end of the day, it’s the customer who really decides. And when you get back to them in a timely manner, it really puts you ahead of the curve.” –Henk Evers
REMEMBER THE VALUE OF FACETO-FACE CONTACT
“In an era of Blackberries and video conferencing, the key to our success has been our willingness to jump on a plane and take our message to the decision makers. Taking the initiative to personally visit people in their environment has made the difference.” –Scott Atherton
BE PATIENT
“Time builds character. I think a lot of people in business make the mistake of ‘go, go, go,’ and if the market softens, they get caught up. You have to have time to be able to carry the investment.” –Tony Mastandrea