Fruit of the Vine: Starting a Winery

Business Overview:

Imagine starting a winery and turning your love of wines into a fun, rewarding and profitable business. As the owner of a winery business, you will receive grapes from vineyards (unless you choose to grow your own) and produce fine wine which you will then bottle and sell locally, nationally, or possibly all around the world. So if you love wine and you’re committed to turning your passion into a successful business, then learning how to start a winery could truly be the right business idea for you. Figures have shown that wine sales have doubled in recent years, and that sales of wines continue to increase regardless of economic conditions. What is more, as you learn how to open a winery you’ll see that you have plenty of options available to you for your business. For example, you can easily offer exciting and informative events such as wine tastings and winery tours to increase your profits. In addition to this you will also be able to personally enjoy the fine wine you produce, so you’ll enjoy both financial and personal rewards with this business.

A Day in the Life of a Winery Business Owner:

As a winery business owner a typical day might begin with receiving grapes from a vineyard in the morning (which you would either own as a part of your winery, or which would be owned by someone else with whom you would have a contract arranged for the grapes). You would then produce wine from your grapes by following the precise wine making process. Using machines, the grapes will be crushed, heated, fermented, and filtered—ultimately leading to the production of wine, which you would then have bottled, labeled, ready to be sold and shipped out. A typical day might also consist of organizing and conducting tours of your winery. Alternatively, you could hire staff to make the wine and conduct the tours, in which case you would spend your day overseeing the smooth running of your winery business.

About Your Customers:

Your customers will be companies and liquor stores that will purchase the wine you produce at a wholesale price to retail to the general public. You may also have customers visit your winery and purchase your wine directly from you.

What You Need to Start:

• Licenses (production, sale and shipping of alcohol are regulated, so you will need to apply at least 6 months before the anticipated sales date)
• Wine making facilities and equipment
• Grapes to produce your wine from (you will need a contract with a grape vineyard, or you could purchase your own vineyard)
• A winery business plan

The Good:

• If you love wine, you’ll be doing what you love every day.
• This business can be very lucrative—wine sales have been shown to continue to grow regardless of economic conditions.
• You can increase your profits by offering tours and tastings.
• You’ll get to enjoy the wine you produce.

The Bad:

• Making wine is a very precise, exacting process so you’ll need to be well informed and well skilled before you begin.
• You’ll need to have sound business skills (marketing, manufacturing, selling) in addition to expertise and passion for wine.

Resources:

• National Association of American Wineries
• Wine and Spirit Trade Association
• European Wine Council
• Wikipedia on Wineries

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