Business
by Stacy BriscoeBusiness
October 2018A Midwestern Wine Hawk Soars
With grapes sourced from around the world, modestly priced wines and more than 30 restaurants focused on the experience of pairing wine with food, Cooper’s Hawk Winery & Restaurant has gathered a dedicated following of wine consumers — and piqued the interest of the American wine industry.
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Business
January 2018Wineries Diverge on Profitability Concerns
Both small and large wineries agreed that labor supply, pricing and government regulations are among the most prominent challenges affecting their profitability and growth, according to a recent survey by The Wine Business Institute at Sonoma State University. However, on many other topics there was surprising divergence based on the size of the winery being surveyed.
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Business
January 2018Predictions for Wine Industry M&A in 2018
Wine industry transaction volume was notably down in 2017 compared to the previous two years, particularly among marquee brands. However, many of the fundamental dynamics that fueled the heightened levels of investment in 2015 and 2016 were still present in 2017, including a diverse pool of active buyers, which drove competitive valuations across a range of winery assets.
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Business
September 2017A Conversation with Robert Nicholson
Robert Nicholson is a longtime player in the world of wine industry mergers and acquisitions, but he considers himself “first and foremost, a wine guy.”
Nicholson, who grew up southwestern England and studied enology at the University of Bordeaux, got his first wine job in 1972 as assistant to the export director of Louis Eschenauer in Bordeaux, where the company owned Chateau Rauzan-Segla and Chateau Smith Haut Lafitte, among others. From there, he went to work for Seagram’s, then became vice president of Christian Brothers in the Napa Valley. After the winery was sold to Heublein in 1989, Nicholson decided to set up his own business.
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Business
May 2017Financial Considerations for Bottling Equipment
Every drop of wine produced by a winery represents countless hours of hard work and expertise dedicated to creating the perfect taste, body and balance. While bottling may seem like a final logistical step in the process of creating the perfect bottle of wine, it is actually a critical component to becoming a successful, profitable winery.
Many winemakers are presented with a plethora of options when it comes to bottling and equipment, each of which have their benefits and drawbacks. There is no one-size-fits-all best option for wineries. There are, however, several considerations when determining how to bottle; these include capacity, delivery deadlines, future growth plans, available staff and more.
No matter how you decide to proceed, careful consideration is crucial. Depending on the number of cases bottled, winery location and production volume, mobile bottling costs can range from $2.20 to $2.50 per case. On the other hand, a state-of-the-art mobile-bottling unit can cost as much as $1 million or more. The size of your winery, your bottling schedule, bottling needs and geographic location will determine whether you should own a bottling line or contract outside bottling services.
If you choose to invest in bottling equipment, it should provide a reasonable return on investment and be sized to meet the needs of your winery today, tomorrow and well into the future.
What are my options?
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Business
December 2015Smart Wineries Use Business Plans
When you hear the phrase “business plan,” the first thing you think of is:
A. Those insufferable, preppy, entrepreneurial MBA types in $200 T-shirts that keep showing up at your tasting room (or that you wish would show up because, though insufferable, they do buy a lot of wine) with their talk of value propositions, exit strategies and Series A financing.
B. Hosts on the TV show “Shark Tank,” with their incessant references to “I really like/dislike this business plan.” (Some of them wear $200 T-shirts as well.)
C. Your old job at a large corporation that could have been the set for the 1999 movie “Office Space,” which is why you now work in the wine industry.
D. That thing your CPA does once a year to make your banker happy but, to tell the truth, you’ve never looked at once.
E. An essential tool for understanding how your wine business works, how you manage financial and human resources, how to monitor results versus plans and hold everyone in the organization accountable.
(Note: Your lenders, investors, vendors, employees and heirs hope you picked “E.”)
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Business
February 2010Is Bigger Really Better?
You’ve heard it since you were 12 years old, but experienced business owners know it’s true—size really does matter. The problem is, no one ever said what size.
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Business
August 2007Business
Suisun Group Opens Tasting RoomREAD MORE »
Business
July 2007Business
SSU Offers Wine MBA
Sonoma State University, Rohnert Park, Calif., will begin offering an M.B.A. program for wine business this fall, the first of its kind in the U.S. The program is a public-private partnership between the university and the wine industry, and is 100% industry funded. Applications for the fall sessions should be submitted by July 13; enrollment is also open for the spring 2008 semester. Visit sonoma.edu/busadmin/mba/program_winemba.shtml for details.READ MORE »
Business
June 2007Business
Paterno Is Now Terlato Wines International
Terlato Wines International is the new moniker for the former Paterno Wines International of Lake Bluff, Ill. The change is a tribute to Anthony J. Terlato, who built the company founded by his father-in-law, Anthony Paterno, into a major player in the worldwide wine industry. William A. Terlato is now president and CEO.READ MORE »
Business
May 2007Business
Trentadue Wins High-Stakes IRS Fight
The U.S. Tax Court ruled in favor of Trentadue Winery, Sonoma County, which had protested an IRS demand for an additional $30,000 on its 2002 tax return. The IRS argued that trellising must be depreciated over a 20-year period, rather than the 10-year schedule used for farm equipment. The court determined that "trellising was properly classified as farm machinery or equipment." Drip irrigation systems, however, remain classified as land improvements.READ MORE »
Business
April 2007Business
Zichichi Family opened Sonoma winery.
Zichichi Family Vineyard and Winery opened a new winery and tasting room at 8626 W. Dry Creek Rd., Healdsburg, Calif., specializing in old-vine Zinfandel, Petite Sirah and Cabernet Sauvignon.READ MORE »