Growing Your Winery Business

Holly Thompson

Growing Your Winery Business…

I took part in the lunch and learn seminar hosted by Cellar Tek & White Kennedy, sponsored by Orchard & Vine Magazine in Penticton and I must say, it was very interesting and informative. The seminar provided insight into what wineries, vineyards etc. struggle with and work towards to grow and maintain a business, a successful business, from start to finish! Everything from; purchases that make sense, sharing equipment, spending money smartly, understanding your market, production, sales distribution to cash flow!

If you’re in the business and you’re working towards growing or just simply maintaining your business then see below for some helpful tips.

Purchases that make sense- Consider adding new equipment but first research your ROI, time is money!

Adding a 2^nd or 3^rd pump
Upgrade your crusher
New Press, more juice more wine
Nitrogen Generator
This one is my favourite… Sharing machines or renting out your equipment!

Although new equipment might require more man power, it is always very important to weight out your costs and compare.

“Don’t be afraid to spend money smartly as you grow!” Peter Glockner

“Money is cheap, don’t fund long term assists with short term cash! Really work with your lender, work on solutions.” Peter MacIntosh

From the financial side of the spectrum, owning a winery business is hard on the wallet, cash is often tied up for a very long time, start-up costs are big and managing cash is vital! First and foremost it is very important to understand your market and create an effective strategy to market your business. Sales are extremely important and here’s the kicker… “You must be passionate about making wine and equally passionate about selling wine. “ Peter MacIntosh

With that being said, people often talk about the love and passion for making wine but very rarely do people discuss the love and passion for marketing and selling the wine!

Market your business 1st and production should come 2^nd
Sales distribution is very important, create a customer base
Control your inventory, do not get carried away with too much inventory (competition is fierce)
Proper cash flow is vital “Cash is king” Peter MacIntosh

Cash flow planning is very vital, it allows you to manage your business by avoiding crisis mode, organize your finances well ahead of time! Control your cash out (bills etc.) cash in (sales) and always remember to “never take your eyes off the sales!” Peter MacIntosh

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