So You Want to Start a Winery

8/6/2019 So You Want to Start a Winery

1/41

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


2/41

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!


3/41

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!


4/41

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.


5/41

Keys to Establishing a WineryKeys to Establishing a Winery


6/41

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


7/41

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.


8/41

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.



9/41

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.



10/41

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



11/41

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



12/41

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/
mailto:[email protected]:[email protected]


13/41

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


14/41

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


15/41

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


16/41

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.


17/41

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


18/41

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



19/41

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



20/41

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



21/41

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


22/41

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


23/41

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


24/41

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


25/41

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


26/41

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


27/41

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


28/41

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


29/41

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


30/41

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)



31/41

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



32/41

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)



33/41

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


34/41

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



35/41

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



36/41

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/


37/41

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


Todd Steiner, Enologist,Todd Steiner, Enologist,


ExpertiseExpertise
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


38/41

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


39/41

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


40/41

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!


41/41

THANK YOU!THANK YOU!

Todd Steiner

Enology Outreach Specialist

OARDCDept. Of Horticulture & Crop Science

Phone: (330) 263-3881

E-mail: [email protected]

Documents

So You Want to Start a Winery