TO%20INCUBATE,%20OR%20NOT

1
TO INCUBATE, OR NOT

• BY WADE WOLFE
• THURSTON WOLFE WINERY

2
Why are you starting a winery?

• Primary occupation professional winemaker?
• Second vocation (midlife crisis)?
• Lifestyle change?
• Retirement?
• Grower going for the profit (or recognition)

3
Previous winemaking experience?

• None
• Home winemaking
• Interned at a winery
• Course work and/or degree in fermentation science
• Professional winemaker

4
More considerations winery staffing

• Who will be the winemaker?
• Who will be the viticulturist?
• Who will be sales person?
• Retail
• Wholesale
• Who will do the accounting and reports?

5
Grape Sourcing

• Estate Vineyard?
• Purchased grapes?
• What appellation(s)?
• Grape contracts?

6
So do you really want to start a winery?
7
What is a winery incubator?

• Assume leased bonded production and warehouse
  facility with or w/o retail
• Rent a suite/building not designed to be a winery
• From a private business
• From a Port district
• Rent space/suite/building designed to be a
  winery
• Single bonded entity
• Multiple bonded entity alternating premise (AP)

8
Potential advantages of incubator - 1

• Lower capital investment for building expense
  costs
• Low(er) rent costs
• Port lease
• Warehouse lease
• Winery incubator lease

9
Potential advantages of incubator - 2

• Lower capital investment for equipment
• Purchased equipment
• Purchase used
• Purchase small and scale up with production
• Shared equipment winery incubator
• Alternating premise
• Share or borrow communal equipment as need

10
Potential advantages of incubator - 3

• Retail benefits if in winery cluster
• Better access to public
• Metropolitan area
• Near freeway exits
• Build brand with low(er) overhead

11
Potential advantages of incubator - 4

• Avoid need to custom crush to reduce overhead
• Invest in building equipment after positive
  cash flow
• More regulatory flexibility than
• Virtual winery
• Alternating premise

12
Potential disadvantages of non-winery incubator -
1

• Not designed as winery - mechanical
• Drainage problems
• Floors not sloped
• Inadequate or no drains
• Poor forklift accessibility
• Small doorways
• Wrong exterior pavement or interior flooring
• Inadequate turnaround space or clearance

13
Potential disadvantages of non-winery incubator -
2

• Solid waste disposal issues
• Garbage service or truck out to vineyard
• Low ceilings (tanks and storage)
• Inadequate CO2 ventilation

14
Potential disadvantages of non-winery incubator -
3

• Inadequate weight bearing floors
• Inadequate AC and/or humidity control
• Inadequate refrigeration
• Inadequate space
• Costs to remodel to improve above

15
Potential disadvantages of incubator - 4

• Not designed as winery esthetics
• Not inviting
• Exterior Looks like a strip mall or warehouse or
  barracks
• Interior Retail space not inviting
• Costs to improve both
• Inadequate access and/or parking
• Not in country or near vineyards

16
Potential disadvantages of incubator - 5

• Legal
• Must bond with Feds and State
• Lease agreement duration

17
Thank you. Questions?