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So You Want to Start aSo You Want to Start aWinery?Winery?
T.E. STEINERT.E. STEINER
DEPT. of Horticulture and CropDEPT. of Horticulture and CropSciencesSciences
The Ohio State University/OARDCThe Ohio State University/OARDC
Wooster, Ohio 44691Wooster, Ohio 44691
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The AmbianceThe Ambiance
Strolling through your beautiful vineyard in the early
evening with the sun setting in the background whileenjoying an exquisitely made vintage Cabernet
Picture This!
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The Reality!The Reality!
With all of the blood, sweat and tears spent in the
vineyard and winery, you will be to tired to take thatromantic stroll through the vineyard. If you do happento make it out in the vineyard near twilight, you will be
disgusted to see that the deer, turkey, raccoons andbirds have eaten all of your Cabernet leaving you nonefor next years romantic walk through the vineyard.
Are You Crazy!
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Just Kidding!Just Kidding!
However, the brief scenario explains other real
issues involved with operating a vineyard andwinery besides all of the work and preparationinvolved with vineyard and winery set-up.
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Keys to Establishing a WineryKeys to Establishing a Winery
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Winemaking ExperienceWinemaking Experience
Winemaking experience:Winemaking experience:At least 5 years as amateur winemakerAt least 5 years as amateur winemaker
Diversify from winemaking kits:Diversify from winemaking kits: Utilize local sources of juice and grapesUtilize local sources of juice and grapes
Sensory trialsSensory trials
Gather opinions of family and friendsGather opinions of family and friends
Compare to professional sensory expertsCompare to professional sensory experts
Enter amateur wine competitionsEnter amateur wine competitions
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Essential InformationEssential Information
Increase knowledge through literature:Increase knowledge through literature:
Grapes into Wine. 1965. Wagner, Philip M. AlfredGrapes into Wine. 1965. Wagner, Philip M. AlfredA. Knopf, Inc. NY.A. Knopf, Inc. NY.
Methods for Analysis of Musts and Wine. 1980.Methods for Analysis of Musts and Wine. 1980.
Amerine, M.A. and Ough, C.S. John Wiley & Sons.Amerine, M.A. and Ough, C.S. John Wiley & Sons.
NY.NY.
Winemaking Basics. 1992. Ough, C.S. TheWinemaking Basics. 1992. Ough, C.S. TheHawthorn Press, Binghampton NY.Hawthorn Press, Binghampton NY.
Knowing and Making Wine. 1984. Peynaud, E. JohnKnowing and Making Wine. 1984. Peynaud, E. John
Wiley & Sons. NY.Wiley & Sons. NY.
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Increase knowledge through literature:Increase knowledge through literature:
Winery Technology & Operations. 1996. Margalit, Y.Winery Technology & Operations. 1996. Margalit, Y.The Wine Appreciation Guild LTD, San Francisco,The Wine Appreciation Guild LTD, San Francisco,CA.CA.
Technology of Winemaking. 1980. Amerine, M.A. et.Technology of Winemaking. 1980. Amerine, M.A. et.al. AVI Publishing Company Inc. Westport Conn.al. AVI Publishing Company Inc. Westport Conn.
Wine Analysis and Production. 1995. Zoecklein,Wine Analysis and Production. 1995. Zoecklein,
B.W. et. al. Chapman & Hall, NY.B.W. et. al. Chapman & Hall, NY. Commercial Winemaking. 1981. Vine, R.P. AVICommercial Winemaking. 1981. Vine, R.P. AVI
Publishing Company. Westport, Conn.Publishing Company. Westport, Conn.
Essential InformationEssential Information
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Trade journalsTrade journals
Vineyard and Winery ManagementVineyard and Winery Management Practical Vineyard and WineryPractical Vineyard and Winery
Wine EastWine East Institutes of higher educationInstitutes of higher education
Great information provided in the form ofGreat information provided in the form of
conferences (proceedings), extension bulletins andconferences (proceedings), extension bulletins and
electronic resources.electronic resources.
Essential InformationEssential Information
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Visit commercial wineriesVisit commercial wineries
Pay special attention to winery layout, utilities,Pay special attention to winery layout, utilities,equipment and marketing aspectsequipment and marketing aspects
Expand your palate by tasting different varieties inExpand your palate by tasting different varieties in
determining what you would like to offer as varietaldetermining what you would like to offer as varietal
or proprietal wineor proprietal wine
Talk with winery owners and winemakers in gettingTalk with winery owners and winemakers in gettingtechnical hands on experienced advicetechnical hands on experienced advice
Essential InformationEssential Information
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Contact TTB and ODL in gathering importantContact TTB and ODL in gathering important
information and requirements that need to beinformation and requirements that need to beaddressed for bonding, licensing and sellingaddressed for bonding, licensing and selling
issues as a commercial wineryissues as a commercial winery
Essential InformationEssential Information
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Contact TTBContact TTB
Department of The TreasuryAlcohol and Tobacco Tax and Trade BureauMs. Perky Ramroth
Phone No. 415-625-5789E-mail: [email protected] site: http://www.ttb.gov/
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Contact ODLContact ODL
Ohio Department of CommerceDivision Of Liquor Control6606 Tussing RoadReynoldsburg, Ohio 43068-9005Phone: 614/644-2411
Fax: 614/644-2513http://www.liquorcontrol.ohio.gov/liquor.htm
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Business ObjectivesBusiness Objectives
Create a business that is a healthy, gratifying andCreate a business that is a healthy, gratifying and
challenging place to workchallenging place to work Promote a quality productPromote a quality product
Provide a unique experience and settingProvide a unique experience and setting Profitable and sustainableProfitable and sustainable
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Develop a set of business goals to help clearlyDevelop a set of business goals to help clearly
define and achieve your business objectivesdefine and achieve your business objectives
Business GoalsBusiness Goals
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Business PlanBusiness Plan
Essential to develop a viable business plan basedEssential to develop a viable business plan based
on all information to obtain an accurate pictureon all information to obtain an accurate pictureof what you will require in the way of assetsof what you will require in the way of assets
Prepared to sustain long term negative cash flowPrepared to sustain long term negative cash flow
with large capital cost.with large capital cost.
Ways to get cash flow goingWays to get cash flow going-- yet still a starvationyet still a starvation
period.period.
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Identify the Potential MarketIdentify the Potential Market
Upscale discriminatingUpscale discriminating
Often the target for smaller boutique wineriesOften the target for smaller boutique wineries Market is more willing to pay higher prices forMarket is more willing to pay higher prices for
product seen as exceptionalproduct seen as exceptional
Special attention to value added product for this typeSpecial attention to value added product for this type
of marketof market
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NonNon--discriminating marketdiscriminating market
Usually driven by lower prices and higherUsually driven by lower prices and higherconsumptionconsumption
May be easier to support in terms of wine qualityMay be easier to support in terms of wine quality
(Average commercial quality)(Average commercial quality)
Issues of market presentation and price may putIssues of market presentation and price may put
smaller producer at a disadvantage who benefits lesssmaller producer at a disadvantage who benefits lessfrom economics of scalefrom economics of scale
Identify the Potential MarketIdentify the Potential Market
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Open MindedOpen Minded
Address both market desiresAddress both market desires Leaves room for growth in early stage evaluation ofLeaves room for growth in early stage evaluation of
where you will place your emphasis in the futurewhere you will place your emphasis in the future
NonNon--discriminating market emphasis more ondiscriminating market emphasis more on
consistencyconsistency
Upscale market emphasis vintage, reserve and estateUpscale market emphasis vintage, reserve and estate Plan ahead for future varietals and styles to bePlan ahead for future varietals and styles to be
introducedintroduced
Identify the Potential MarketIdentify the Potential Market
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RememberRememberItIts not always about what winess not always about what wines
you prefer but what your clientele or marketyou prefer but what your clientele or marketdemandsdemands
Identify the Potential MarketIdentify the Potential Market
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Capture The Target MarketCapture The Target Market
AdvertisingAdvertising
Signage, newspaper, radio, websiteSignage, newspaper, radio, website On site premise tastingOn site premise tasting
Offsite premise tastingOffsite premise tasting Festivals and eventsFestivals and events
Special eventsSpecial events Dinners, music, otherDinners, music, other
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Labels and packagingLabels and packaging
Unique attractive bottles and labels get attention andUnique attractive bottles and labels get attention andmay help to drive salesmay help to drive sales
Wine competitionsWine competitions
A good way to evaluate your quality and provideA good way to evaluate your quality and provide
good marketing exposure to quality winesgood marketing exposure to quality wines
Capture The Target MarketCapture The Target Market
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Supporting The MarketSupporting The Market
Direct on premise salesDirect on premise sales -- (retail)(retail)
Most common for small to medium sized startMost common for small to medium sized start--upupwinerywinery
Wholesale to restaurant and wine shopsWholesale to restaurant and wine shops
Common to retail in providing more importantCommon to retail in providing more important
information to be presentedinformation to be presented
Good for moving a relatively small volume in aGood for moving a relatively small volume in alimited regional arealimited regional area
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Selling through a distributorSelling through a distributor
Rely on promotional materials to sell your imageRely on promotional materials to sell your image Personal impact will be less then selling directPersonal impact will be less then selling direct
Require large volumes to keep up with demandRequire large volumes to keep up with demand
Supporting The MarketSupporting The Market
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Site SelectionSite Selection
Location, Location, LocationLocation, Location, Location
Tourism helps drive salesTourism helps drive sales Easy assess to wineryEasy assess to winery
Make sure trucks and busses are welcome andMake sure trucks and busses are welcome andcan get in and out with easecan get in and out with ease
Fairly easy for people to findFairly easy for people to find
traffic patternstraffic patterns
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Nice aesthetics to have vineyard nearbyNice aesthetics to have vineyard nearby
Access to sewer, water and utilitiesAccess to sewer, water and utilities Rural/city sewer, water and utilitiesRural/city sewer, water and utilities
Site SelectionSite Selection -- LocationLocation
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Tasting Room DesignTasting Room Design
Nice to have sight access to winery, vineyardNice to have sight access to winery, vineyard
and wonderful sceneryand wonderful scenery SizeSizeDonDont skimp on size!t skimp on size!
Plan for comfortable flow patternsPlan for comfortable flow patterns Wheelchair accessibleWheelchair accessible
Include large attractive bar area with good glassInclude large attractive bar area with good glasswashing capabilitieswashing capabilities
Provide phone lines, electric and camera systemProvide phone lines, electric and camera system
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Special event rooms or areasSpecial event rooms or areas
barrel tasting room, catered areas etc..barrel tasting room, catered areas etc.. Include enough space for glass and case storageInclude enough space for glass and case storage
Have dedicated areas for retail itemsHave dedicated areas for retail items Provide office for tasting room managerProvide office for tasting room manager
Tasting Room DesignTasting Room Design
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Winery Layout and DesignWinery Layout and Design
Must have nice architectureMust have nice architecture
Needs to be inviting from a distanceNeeds to be inviting from a distance Make it a unique experienceMake it a unique experience
Provide customer viewing area of productionProvide customer viewing area of productionfacilities and bottling linefacilities and bottling line
Have a shipping and receiving areaHave a shipping and receiving area
Forklift friendlyForklift friendly
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Design winery for functionality and flowDesign winery for functionality and flow
Electric and water throughout the winery (potableElectric and water throughout the winery (potableand waste)and waste)
High ceilings (14 feet) with commercial access doorsHigh ceilings (14 feet) with commercial access doors
Painted cement floors (sanitation process)Painted cement floors (sanitation process)
Provide plenty and large drain capacitiesProvide plenty and large drain capacities
Heating and cooling capabilities (glycol, MLF)Heating and cooling capabilities (glycol, MLF)
Winery Layout and DesignWinery Layout and Design
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Design winery for functionality and flowDesign winery for functionality and flow
Flow from harvest to bottling in winery designFlow from harvest to bottling in winery design Outside crush pad (cemented) with roofOutside crush pad (cemented) with roof
Separate Refrigeration room or jacketed tanksSeparate Refrigeration room or jacketed tanks
Barrel room (humidity controlled)Barrel room (humidity controlled)
Enclosed bottling line for sterility concernsEnclosed bottling line for sterility concerns
DonDont skimp on the wine laboratoryt skimp on the wine laboratory
Winery Layout and DesignWinery Layout and Design
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Designate enough room solely for storageDesignate enough room solely for storage
Chemical, equipment, empty case and bottle agingChemical, equipment, empty case and bottle agingareasareas
Provide office for winery and vineyard staffProvide office for winery and vineyard staff
Plan on future growth opportunitiesPlan on future growth opportunities
Physical (land for additional buildings)Physical (land for additional buildings)
Utilities (water, septic, electric, and telephone)Utilities (water, septic, electric, and telephone)
Winery Layout and DesignWinery Layout and Design
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Winery EquipmentWinery Equipment
Depend on source and style of wine produced inDepend on source and style of wine produced in
addition to winery sizeaddition to winery size Estate vineyards, purchased grapes, juice,Estate vineyards, purchased grapes, juice,
discriminate market, nondiscriminate market, non--discriminate market, anddiscriminate market, and
open marketopen market Crusher/Destemmer, PressCrusher/Destemmer, Press
Winery tanksWinery tanksred, white or bothred, white or both
Jacketed SS, SS, HDPEJacketed SS, SS, HDPE
Fermentation, aging, cold stabilizing and bottlingFermentation, aging, cold stabilizing and bottling
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Oak integration or none?Oak integration or none?
Barrels or oak alternativesBarrels or oak alternatives Pumps based on winery size and stylePumps based on winery size and style
Must, transferMust, transfervariable speedvariable speed Filtration based on winery size and styleFiltration based on winery size and style
Plate and frame, membrane, crossflowPlate and frame, membrane, crossflow
Winery EquipmentWinery Equipment
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Bottling lineBottling line
Hand or semiHand or semi--automaticautomatic Laboratory equipmentLaboratory equipment
Extremely important for quality controlExtremely important for quality control In winery or commercial laboratoryIn winery or commercial laboratory
Winery EquipmentWinery Equipment
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ExpertiseExpertise
Invest in a vineyard and winemaking consultant ifInvest in a vineyard and winemaking consultant if
needed in the production of a consistent qualityneeded in the production of a consistent qualityproductproduct
Organizations such as OWPA and OGIP provideOrganizations such as OWPA and OGIP provide
excellent opportunities in special events andexcellent opportunities in special events andmarketingmarketing
OWPAOWPAhttp:www.ohiowines.org/http:www.ohiowines.org/
Phone: 1Phone: 1--800800--227227--69726972
OGICOGIChttp:http:www.ohiograpes.org/www.ohiograpes.org/
Phone: 1Phone: 1--800800--282282--19551955
http://www.ohiograpes.org/http://www.ohiograpes.org/http://www.ohiograpes.org/ -
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Viticulture and Enology expertise at The OhioViticulture and Enology expertise at The Ohio
State University/OARDCState University/OARDC Imed Dami, Viticulturist,Imed Dami, Viticulturist,
[email protected]@osu.edu, Phone: (330) 263, Phone: (330) 263--38823882
Dave Scurlock, Viticulture Outreach SpecialistDave Scurlock, Viticulture Outreach Specialist
[email protected]@osu.edu, Phone: (330) 263, Phone: (330) 263--38253825
Todd Steiner, Enologist,Todd Steiner, Enologist,
[email protected]@osu.edu, Phone: (330) 263, Phone: (330) 263--38813881
ExpertiseExpertise
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected] -
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LegalLegal
Federal (TTB), State (ODL) and local lawsFederal (TTB), State (ODL) and local laws
Legal councilLegal council(ex. Corp. LLC. etc..)(ex. Corp. LLC. etc..) Record keepingRecord keepingvineyard, wine, businessvineyard, wine, business
SafetySafety InsuranceInsurance
Trademark and copyright lawsTrademark and copyright laws
Optimum ManagementOptimum Management
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Optimum ManagementOptimum Management
and Personnel Staffand Personnel Staff
General managerGeneral manager
Vineyard managerVineyard manager
Head winemakerHead winemaker
Hospitality managerHospitality manager
Retail managerRetail manager
Clerical staffClerical staff
Support staffSupport staff
Vineyard, winery, tasting room, and restaurantVineyard, winery, tasting room, and restaurant
A h d f h d
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At the end of the dayAt the end of the day
Once everything is in place and goingsmoothly, you may get to enjoy that romanticstroll through your beautiful vineyard in the
early evening with the sun setting in thebackground while enjoying your exquisitelymade vintage Cabernet after all!
TTHANK YOU!
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THANK YOU!THANK YOU!
Todd Steiner
Enology Outreach Specialist
OARDCDept. Of Horticulture & Crop Science
Phone: (330) 263-3881
E-mail: [email protected]