There is an old adage in the vineyards and winery business. “Do you want to know how to make a million dollars? Take two million and start a winery.”

If you have seen wineries up for sale, the prices are nothing less than breathtaking at the first look. However, consider all that goes into the start of a winery. Purchase the land. Obtain the necessary machine equipment including a tractor. Plant the grapevines. Care for and maintain the vines. Once the grapes are producing well, usually five years, then the winemaking can begin. In the winery all types of equipment is used including stainless steel tanks, oak barrels that may run as high as $1000 a piece, filters and hoses. That does not even take into account construction of the winery building and tasting room.

So how do wineries succeed especially competing with the large wineries that can buy bulk? It is probably safe to say that most wines are between ten and twenty dollars a bottle. So how do wineries manage? Maybe, many do not and that is why two million dollars can easily become one million. Perhaps they need to sell the winery or face foreclosure. I always feel a sense of loss for a winery that puts their heart and soul into a vineyard and winery and then must sell everything.

What do you think?

Cheers, Kathy