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Writer's pictureVino Launch

How to Start a Winery or Wine Business: A Step-by-Step Guide

Updated: Oct 1

A scenic vineyard with lush grapevines under a clear sky. In the foreground, a wine barrel with a labeled wine bottle rests beside a person holding a clipboard, reviewing wine production terms. The image captures the essence of starting a winery, blending natural elements of the vineyard with the tools and processes of winemaking.
Starting a winery or wine business is an exciting journey filled with opportunities to create something unique. To set yourself up for success, it's essential to follow a strategic plan that addresses every aspect of the wine business. Here’s a structured guide to help you turn your dream into reality.


 

1) Learn Common Wine Production Terms


Before diving into the business, familiarize yourself with the terminology that defines the wine industry. Understanding these terms will not only help you communicate effectively with industry professionals but also make informed decisions about your production process.


  • Varietal: This term refers to a wine made primarily from a single type of grape, such as Cabernet Sauvignon or Chardonnay. Understanding varietals is essential for targeting the right audience and creating a wine that meets market demand.

  • Custom Crush: A facility where you can produce your wine using shared equipment and expertise. Ideal for small batches or those new to winemaking.

  • Bulk Wine: Wine purchased in large quantities, often used to blend with other wines or bottled under a private label. This can be a cost-effective way to enter the market quickly.

  • Urban Winery: A winery located in a city rather than a traditional vineyard setting, often sourcing grapes from various regions.

  • Fermentation: The process by which yeast converts the sugars in grape juice into alcohol and carbon dioxide, creating wine. Mastery of fermentation techniques is crucial to producing high-quality wine.

  • Topping Wine: The practice of adding wine to barrels to replace the wine lost to evaporation, known as the "angel's share." This is essential to prevent oxidation and maintain the quality of the wine during aging.


Grasping these terms is the foundation upon which you'll build your wine business.


2) Master Compliance


Compliance with state and federal regulations is non-negotiable in the wine industry. Navigating these requirements can be daunting, but understanding the basics will save you time and prevent legal issues down the line.


  • TTB (Alcohol and Tobacco Tax and Trade Bureau): The federal agency responsible for regulating the production, distribution, and labeling of alcoholic beverages. You'll need to obtain a federal basic permit from the TTB to start your winery.

  • ABC (Alcoholic Beverage Control): Each state has its own ABC agency that regulates the sale and distribution of alcohol within the state. Understanding state-specific requirements is crucial, especially if you plan to sell across state lines.

  • Labeling Requirements: Compliance with TTB regulations on labeling is crucial. This includes accurate information on alcohol content, grape varietals, and the region of origin.


By mastering compliance, you ensure your business operates smoothly and legally from day one.


3) Focus on Your Customer


Knowing your customer is key to creating a product that sells. Start by identifying who will drink your wine and what they prefer.


  • Popular Varietals: Research the most popular wine varietals in your target market. What’s trending? Is there a growing demand for organic or natural wines?

  • Restaurant Insights: Talk to local restaurant owners and sommeliers to find out their best-selling wines. Ask if there’s a specific wine customers frequently request but they don’t carry—this could be your niche.

  • Pricing Research: Understanding your customer's price sensitivity will help you position your wine competitively in the market.


Focusing on your customer’s preferences will guide your product development and marketing strategies.


4) Develop a Wine Label That Your Customer Will Love


Your wine label is more than just a sticker on a bottle—it’s a critical part of your brand identity. A well-designed label can attract customers and communicate the essence of your wine.


  • Design Considerations: Work with a designer who understands the wine industry to create a label that resonates with your target audience.

  • Legal Requirements: Ensure your label complies with TTB regulations, which cover everything from alcohol content to appellation.

  • Storytelling: Use your label to tell the story of your winery. What makes your wine unique? Why should customers choose your brand over others?


A compelling wine label can be the deciding factor for customers when choosing between bottles on the shelf.


5) Use a Custom Crush or Bulk Wine Wholesaler to Develop Your First Lot of Wine


Starting with a custom crush facility or purchasing bulk wine can be a cost-effective way to produce your first batch of wine without the need for extensive equipment or a vineyard.

  • Custom Crush: Leverage the expertise and equipment of an established facility to produce your wine. This allows you to focus on branding and marketing while the technical details are handled by professionals.

  • Bulk Wine: Consider purchasing bulk wine that meets your quality standards, which you can then bottle under your own label. This approach allows for quicker market entry and flexibility in production volumes.

  • Topping Wine: Don’t forget the importance of topping off your barrels during aging. This process helps prevent oxidation and ensures your wine maintains its intended flavor profile.


This step enables you to bring your wine to market faster, with lower upfront costs.


6) Start Selling


Once your wine is ready (or even before it’s bottled), it’s time to start selling. Pre-sales and early marketing efforts can generate buzz and secure initial revenue streams.


  • Pre-Sales: Approach local liquor stores and restaurants with samples of your wine. Offering pre-sales can help you gauge demand and secure orders before your wine is fully produced.

  • Wine Club: Establish a wine club to provide consistent revenue and build a loyal customer base. Members can receive exclusive releases, discounts, and invitations to events.

  • Direct-to-Consumer (DTC): Selling directly to consumers through your website or tasting room can yield higher profit margins and foster customer relationships.


Starting your sales efforts early can create momentum and establish your brand in the market.


Conclusion

Starting a winery or wine business is an ambitious and rewarding endeavor. By following this structured approach—learning the industry terms, mastering compliance, understanding your customer, creating an appealing wine label, using custom crush or bulk wine options, and beginning your sales early—you can lay a solid foundation for a successful venture.

Ready to embark on your winemaking journey? Vino Launch offers expert consulting services tailored to new wine entrepreneurs. Let’s turn your vision into a thriving wine business.


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