Vineyard Land Acquisition
In the wine business, it all starts with the vineyard! Searching for, and acquiring world-class quality vineyard land is the foundation of Wine Industry Investment Consulting's expertise. Choosing properly is a synthesis of many input factors. These factors need to align with the
Climate Impact Analysis
Winegrapes will grow in most climates. However, matching a specific site's climate to the winegrape variety whose quality can best be maximized there is the objective. Of the many impacts on grape production, climate will MOST affect the price received for the grapes. For example, Chardonnay fruit may garner $4,000 per ton in one region and $250 per ton in another. Comparison of sites' growing season Degree Day history is a powerful tool. WIIC maintains 100 temperature monitoring sites throughout the West Coast wine regions.
Climate, soil and water are the top three considerations for a site's PHYSICAL vineyard feasibility. Rarely will they indicate you can not grow winegrapes on a site. What they typically indicate is: (a) the varieties that might best suit the site, (b) probable production levels, (c) style of grape/wine that is likely to result and (d) grape price range in which one will be competing. However, there is an equally important aspect of vineyard feasibility that every client should understand ~~ the economic feasibility of the property. A dose of risk evaluation should also be thrown into the "feasibility" analysis.
Over and Over and....
Winegrape prices have a long-term history of cycles lasting 10+/- years. There are economic reasons why this continues to occur. Where in the cycle one is can greatly impact business decisions. Since these are recurring cycles, future price directions can be confidently built into business planning. Any consulting project (or acquisition)is approached with the backdrop of where we are in the cycle, and where we will be at key points of the business plan (first production, contract negotiation timing, etc.)
So, You Want A Winery, Too?
Winegrape growing is a challenging agricultural endeavor. Unlike most agricultural commodities, there is an extreme amount of price/quality segmentation -- dictated by the end product's value. Adding a winery and wine brand creation to the mix takes the complexity level much higher. Oversimplified: Vertically integrating the vineyard with a winery will greatly increase the investment, the risk and postpone the revenue flow. Yes, a greater investment and risk, but the highest returns CAN come from a fully integrated winery that controls their own vineyards.
30+ Years of Creating and Enhancing World-Class Vineyard and Wine Estates
from many disciplines.
prior to acquisition is an intensive
process, which can entail engaging