If you enjoy your wine, making money from it might seem like a great idea. There is certainly demand for wine (for any alcohol really).
Many people are also looking for good deals on their wine or want to learn more about what they’re drinking. Wine can also be shipped to many states.
It’s not easy though. Not only is there fierce competition and tight distribution bottlenecks to cope with, but also the shaky wine economy itself. At one end are the producers running zombie businesses. These wineries and vineyards appear to be functioning and debt-free, but the people who own them are not replanting the vineyards, investing in equipment, or drawing a living wage.
The majority of the courses in sommelier school are delivered by universities, colleges, and independent wine schools.
At the other end of the wine business are the trophy hunters and lifestyle seekers – the doctors, lawyers and internet entrepreneurs who have made their fortune and are now ready to follow their dream.
Caught up in the glamour of wine, they frequently throw away everything they know about business planning and forecasting, and just buy a winery and hope for the best.
So how do you really make money from wine production and what are some things you need to know before getting started. All of this an more will be discussed in this article.
- How is Wine Made – Step by Step
- What is Used in Making Wine
- What Are The 5 Main Types of Wine
- Wine Making Process at Home
- Wine Making Recipes
- Wine Making Supplies and Equipment
- White Wine Making Process
- Red Wine Making Process
- What Are The Top 10 Most Popular Wine
- Which Wine is Best For Ladies
- What is The World’s Best Selling Wine
- How to Start a Wine Business
- How to Make Money in a Wine Business
- How Much Does it Cost to Make Your Own Wine Brand
- What is The Profit Margin on Wine
- How do Wine Brokers Get Paid
- Is Wine Shop a Profitable Business
- How do You Price a Bottle of Wine
How is Wine Made – Step by Step
Making wine is not just an art but there is also a lot of science involved in the process.
Smallest of mistakes in the process can have a major impact on the final product. Basically, wine is made in 5 different steps.
While these five steps are compulsorily followed by the winemakers, they do add their variations to the process to add an exclusive touch to their wine. Below are the five steps
Harvesting
The first step in making wine is harvesting. It is the grapes which contain all the required esters, tannins and acids that make delicious wine.
The moment at which the grapes are picked from the vineyard is what actually determines the sweetness, flavour and acidity of the wine.
Along with the traditional tasting method, deciding when to harvest the grapes also requires a fair bit of science.
It is very important to make sure that the sweetness and acidity of the grapes are in perfect balance while picking the grapes. And not to forget, weather also plays an important role in the harvesting process.
Harvesting can be done by hand or by machines. However, many of the winemakers prefer to do it by hand as machines are known to negatively affect the grapes and the vineyard.
Once grapes are picked, they are taken to winery and are then sorted in bunches. Under ripe and rotten grapes are removed.
Crushing and Pressing
Crushing the whole clusters of fresh ripe grapes is traditionally the next step in the wine making process. Today, mechanical crushers perform the time-honored tradition of stomping or trodding the grapes into what is commonly referred to as must.
For thousands of years, it was men and women who performed the harvest dance in barrels and presses that began grape juice’s magical transformation from concentrated sunlight and water held together in clusters of fruit to the most healthful and mystical of all beverages – wine. As with anything in life, change involves something lost and something gained.
By using mechanical presses, much of the romance and ritual has departed this stage of wine making, but one need not lament too long due to the immense sanitary gain that mechanical pressing brings to wine making.
Mechanical pressing has also improved the quality and longevity of wine, while reducing the winemaker’s need for preservatives. Having said all this, it is important to note that not all wine begins life in a crusher.
Sometimes, winemakers choose to allow fermentation to begin inside uncrushed whole grape clusters, allowing the natural weight of the grapes and the onset of fermentation to burst the skins of the grapes before pressing the uncrushed clusters.
Up until crushing and pressing the steps for making white wine and red wine are essentially the same. However, if a winemaker is to make white wine, he or she will quickly press the must after crushing in order to separate the juice from the skins, seeds, and solids.
By doing so unwanted color (which comes from the skin of the grape, not the juice) and tannins cannot leach into the white wine. Essentially, white wine is allowed very little skin contact, while red wine is left in contact with its skins to garner color, flavor, and additional tannins during fermentation, which of course is the next step.
Fermentation
Crushing and pressing is followed by the fermentation process. Must naturally starts fermenting within 6 to 12 hours when wild yeast is added to it.
But many of winemakers add cultured yeast to the must to predict the final outcome and ensure consistency.
This fermentation process continues until all the sugar is transformed into alcohol, resulting in the production of dry wine.
If sweet wine is to be made, winemakers halt the process in between to prevent entire sugar from converting.
The total fermentation process can take about a week to a month and even more.
Clarification
Once fermentation is completed, the clarification process begins. Winemakers have the option of racking or siphoning their wines from one tank or barrel to the next in the hope of leaving the precipitates and solids called pomace in the bottom of the fermenting tank.
Filtering and fining may also be done at this stage. Filtration can be done with everything from a course filter that catches only large solids to a sterile filter pad that strips wine of all life. Fining occurs when substances are added to a wine to clarify them.
Often, winemakers will add egg whites, clay, or other compounds to wine that will help precipitate dead yeast cells and other solids out of a wine. These substances adhere to the unwanted solids and force them to the bottom of the tank. The clarified wine is then racked into another vessel, where it is ready for bottling or further aging.
Aging and Bottling
The final stage of this process is aging and bottling the wine. The wine can be instantly bottled or the winemaker can give additional aging to the wine.
For aging, the wine is transferred to oak barrels, stainless steel tanks or bottles.
Many of the winemakers prefer using oak barrels for aging as it is known to add a rounder, smoother and more vanilla-like flavour to the wine.
Moreover, it also helps in increasing their oxygen exposure, allowing the tannins to get reduced and enabling the wine to reach to an optimal flavour.
For white wines, steel tanks are generally preferred.
Once the aging process finishes, the wine is then bottled with screw cap or cork.
What is Used in Making Wine
Wine is a product that can be made with stunning variations, mostly depending on its type, condition and the region in which grapes were grown. Currently, there are over 10 thousand variations of wine in the world, from red and white, solid or sparkling to the dessert and fortified wines.
Although many types of fruits can be made into alcoholic drink, only grape has in itself the perfect union of pulp, juice, sugars, acids, tannins, and minerals that are responsible for the fermentation process.
Although many believe, that this natural process creates the most natural wine, modern way of winemaking uses many additives which make the wine better, stronger, longer lasting and able to hold many various tastes.
As a bare minimum, these are ingredients that are used in modern winemaking:
- Grapes – This foundation of wine has in itself all the major components for fermentation. From wild yeast that will start the process, to the sugars who will be transformed to alcohol and CO2.
- Yeast – Presence of these living organisms (fungi micro-organisms present in the tissue of grapes, or added by winemakers) is crucial for the creation of wine. They play the pivotal role in fermentation, converting sugars into alcohol and CO2. For the vest possible results, yeast must multiply in the environment between 70 and 80 degrees Fahrenheit.
- Yeast Nutrients – They provide additional vitamins and materials needed for the more successful process of yeast multiplication. It is added at the beginning of the fermentation.
- Sugar – Additional sugar must be added, so that yeast can produce higher amount of alcohol in end product.
- Water – Pure water can be added to the fermenting wine to regulate the amount of present sugar.
- Sodium Metabisulfite – One of the most common wine ingredients today. It is used to disinfect and sterilize all winemaking equipment (container, buckets, siphons, bottles, corks, etc), and is added to the fermenting wine to protect it from harmful bacteria. Alternative to Sodium Metabisulfite can be Potassium Metabisulfite or Campden Tablets.
- Tannin – This naturally occurring element found in Grape can sometime be artificially added to increase the amount of dryness in final product (tannin modifies saliva in our mouth by removing its lubricating effect).
- Pectin Enzyme – This additive breaks down any pectin found in wine, making the end product clearer.
- Finings – They are used to assist with wine clarification. These positively charged particles collect small negatively charged particles, clearing the fluid and creating more clearly looking product. Typical Finings that are used today are enonite, kieselsol, isinglass, liquid gelatin, or dry gelatin (historically used raw egg whites may contain harmful bacteria).
- Acid Blend – Acids are used in many recipes to increase acidity of wine, most commonly itric acid, malic acid, and tartaric acid.
- Additives – These additives are used to change flavor, appearance and smell of the wine. Some of them are clay, acid, artificial yeasts, enzymes, sugar, gelatin, and charcoal, and many international governing bodies regulates their use and enforce their listing on the product labels.
- Time – The most important ingredient in every recipe.
What Are The 5 Main Types of Wine
Knowing main types of wine is the first good step to start knowing the world of wine. Although many people may think that identifying wines into such the red or white wine can be as simple as using your eye to classify the color, each wine type actually has its own character and identity which according to grape varieties and wine region and also including tannin level, aroma and bouquet, sweet, and alcohol level which all affect the flavors in some way.
White Wine
Mostly, white wine will provide flavor character including bright, savory, and creamy based on the inputs. Recommended varieties for wine beginners are Chardonnay, Riesling, Sauvignon Blanc and Moscato.
Many of you may understand that white wine is made of white grapes alone, but actually it can be either red or black grapes. The exact way to make white wine is to extract the red pigments away and utilize on grape juice only.
Red Wine
Production of red wine is quite similar to making white wine but only with the addition of grape skin, grape pip and seed incorporated into the fermentation process. Red wine will be fermented in higher temperature, to extract color, tannin, aroma and flavors with different level of concentration varies by duration of fermentation.
Cabernet Sauvignon, Merlot, Pinot Noir, and Zinfandel can also be a good choice to start with for wine beginners.
Rose Wine
Rose wine with a pink rose color is made from red or black grape with a short fermentation time, about 12-36 hours only. However, there is another popular style to make this Rose, by just straight away blending red wine and white wine together. The flavor of this wine ranges from dry to sweet and comes with a pale to dark pink color and a lower level of tannin.
Dessert or Sweet Wine
There is no constant definition for Dessert or Sweet wine. Mostly, it is because of the character of sweetness itself with the occasion of serving with desserts after the meal.
But in some countries such as United Kingdom, people usually drink sweet white wine as an aperitif, before the meal, and sweet red wine to rinse their palate after. Sweet wine can be categorized into Port, Tawny, or Sherry and so on.
Sparkling Wine
When thinking of Sparkling wine, we will be reminded of a celebration. The sparkling bubbles from carbon dioxide (CO2) occur naturally or specifically are added during the fermentation process.
Sparkling wine can be categorized further by region, for example; Cava in Spain, Asti or Prosecco from Italy and Champagne from the Champagne region in France.
Wine Making Process at Home
If you are a wine lover, at some point in time you might have thought of the idea of making your own wine at home.
Wine making at home requires several pieces of inexpensive equipment, serious cleanliness, and a mess of patience. Turns out, Tom Petty was right: “The waiting is the hardest part.”
Equipment Checklist:
- One 4-gallon food-grade-quality plastic bucket and lid to serve as the primary fermentation vat
- Three 1-gallon glass jugs to use as secondary fermentation containers
- A funnel that fits into the mouth of the glass bottles
- Three airlocks (fermentation traps)
- A rubber cork (or bung) to fit into the secondary fermentation container
- Large straining bag of nylon mesh
- About 6 feet of clear half-inch plastic tubing
- About 20 wine bottles (you’ll need 5 bottles per gallon of wine)
- Number 9-size, pre-sanitized corks
- Hand corker (ask about renting these from the wine supply store)
- A Hydrometer to measure sugar levels
Ingredient Checklist:
- Lots and lots of wine grapes
- Granulated sugar
- Filtered water
- Wine yeast
To the above basic list you can refine the process by adding such things as Campden tablets to help prevent oxidation, yeast nutrients, enzymes, tannins, acids, and other fancy ingredients to better control your wine production.
Making Wine
Part 1
- Ensure your equipment is thoroughly sterilized and then rinsed clean. (Ask at the wine supply store about special detergents, bleaches, etc.). It’s best to clean and rinse your equipment immediately before using.
- Select your grapes, tossing out rotten or peculiar-looking grapes.
- Wash your grapes thoroughly.
- Remove the stems.
- Crush the grapes to release the juice (called “must”) into the primary fermentation container. Your hands will work here as well as anything. Or go old school and stomp with your feet. If you’re making a lot of wine, you might look into renting a fruit press from a wine supply store.
- Add wine yeast.
- Insert the hydrometer into the must. If it reads less than 1.010, consider adding sugar. If you’re adding sugar, first dissolve granulated sugar in pure filtered water (adding sugar helps boost low alcohol levels). Stir the must thoroughly.
- Cover primary fermentation bucket with cloth; allow must to ferment for one week to 10 days. Over the course of days, fermentation will cause a froth to develop on top and sediment to fall to the bottom.
Part 2
- Gently strain the liquid to remove the sediment and froth.
- Run the juice through a funnel into sanitized glass secondary fermentation containers. Fill to the top to reduce the amount of air reaching the wine.
- Fit the containers with airlocks.
- Allow the juice to ferment for several weeks.
- Use the plastic tube to siphon the wine into clean glass secondary fermentation containers. Again, the purpose here is to separate the wine from sediment that forms as the wine ferments.
- Continue to siphon the wine off the sediment periodically (this is called “racking”) for 2 or 3 months until the wine is running clear.
Part 3
- Run the wine into bottles (using the cleaned plastic tubing), leaving space for the cork plus about a half inch or so of extra room.
- Insert corks.
- Store the wine upright for the first three days.
- After three days, store the wine on its side at, ideally, 55 degrees F. For red wine, age for at least 1 year. White wine can be ready to drink after only 6 months.
Wine Making Recipes
Dried Apricot Wine
This recipe can be made any time of the year. Stay away from dried apricots
containing sorbate, benzoate, sorbic acid, or benzoic acid. Makes one gallon (3.8
L).
Ingredients
- 2.0 lb. (0.91 kg) chopped dried apricots
- 1 can Welch’s or Old Orchard 100% White Grape Juice (frozen concentrate)
- 1 1/4 lb. (0.57 kg) demerara or turbinado sugar (if unavailable, may substitute
Sugar-in-the-Raw) - 1 1/4 tsp. acid blend
- 6 pints (2.8 L) water
- 1 tsp. pectic enzyme
- 1/4 tsp. grape tannin
- 1 crushed Campden tablet
- 3/4 tsp. yeast nutrient
- 1 pkg Red Star Côte des Blancs wine yeast
Combine all ingredients except yeast in fermenter. Stir to dissolve sugar, cover and set in warm place for 24 hours. Add yeast, cover, and stir daily for 10 days. Strain into secondary fermenter, pressing pulp lightly. Top up to one gallon (3.8 L) with water and fit airlock. Rack after 30 days and again after an additional 60 days. When clear, rack again and bottle. Allow to age one year.
Dried Elderberry Wine
You can buy dried elderberries from most winemaking shops or pick plenty of wild ones and dry them. Dried elderberries do not leave the residue, described as “elderberry goo,” that defies conventional clean-up methods. Recipe makes
one gallon (3.8 L).
Ingredients
- 4–5 1/4 oz. (0.11–0.15 g) dried elderberries
- 2 1/2 lbs. (1.1 kg) sugar
- 7 3/4 pints (3.7 L) water
- 1 tsp. acid blend
- 1 tsp. yeast nutrient
- 1 crushed Campden tablet
- 1 pkg of Red Star Montrachet yeast
Bring water to boil with sugar. Stir until sugar is dissolved and water clear. Wash dried elderberries and put in nylon straining bag with several sanitized marbles for weight. Tie bag and put in primary. Pour boiling sugar water over elderberries and cover primary. When cool, stir in crushed Campden tablet, yeast nutrient and acid blend until dissolved.
Recover and set aside 12 hours. Add activated yeast and ferment until specific gravity drops to 1.010, stirring and squeezing bag daily. Transfer liquid to secondary, fit airlock and ferment to dryness. Rack every 30 days until wine clears and doesn’t drop even a dusting of lees over a 30-day period. Bottle and enjoy. Improves with age.
Blackberry Port
Blackberry port is seldom made, but well worth the effort. Use fully ripe berries, fresh or frozen. Makes one gallon (3.8 L).
Ingredients
- 6.0 lb. (2.7 kg) ripe blackberries
- 1 cup red grape concentrate
- 1/2 cup light dried malt extract
- 1 3/4 lb. (0.79 kg) granulated sugar
- 1/2 tsp. pectic enzyme
- 1 1/4 tsp. acid blend
- 4 pints (1.9 L) water
- 1 crushed Campden tablet
- 1/2 tsp. yeast energizer
- 1 tsp. yeast nutrient
- 1 pkg Lalvin K1-V1116 (Montpellier) or a port wine yeast
Wash and crush blackberries in nylon straining bag and strain juice into fermenter.
Tie top of nylon bag and place in primary. Stir in all other ingredients except pectic enzyme, yeast and red grape concentrate. Stir well to dissolve sugar, cover well, and set aside for 8– 12 hours. Add pectic enzyme, re-cover, and set aside additional 8–12 hours. Add yeast, cover, stir ingredients daily, and press pulp in nylon bag to extract flavor.
When specific gravity is 1.030 (about 5 days), strain juice from bag and siphon liquid off sediment into secondary fermentation vessel. Fit airlock and set aside. Rack in three weeks and again in two months. When wine is clear and well past last evidence of fermentation, stabilize, add red grape concentrate, and set aside for 3 weeks. If no evidence of re-fermentation, rack again and bottle. Allow at least a year to mature, but will improve for several years.
Blueberry Wine
Ripe blueberries can be crushed fresh or frozen, thawed and crushed later. Frozen blueberries in the supermarket were actually riper when picked than the fresh ones in the produce department. Makes one gallon (3.8 L).
Ingredients
- 2 1/2 lb. (1.1 kg) blueberries
- 1 cup red grape concentrate
- 1 3/4 lb. (0.79 kg) granulated sugar
- 1/2 tsp. pectic enzyme
- 1 1/2 tsp. acid blend
- 1/2 tsp. yeast energizer
- 1 tsp. yeast nutrient
- 1/2 tsp. wine stabilizer
- 6 pints (2.8 L) water
- 1 crushed Campden tablet
- 1 pkg White Labs 749 AMH (Assmanshausen) or Lalvin 71B-1122 (Narbonne) wine
yeast
Wash and crush blueberries in nylon straining bag and strain juice into primary fermentation vessel. Tie top of nylon bag and place in primary fermentation vessel. Stir in all other ingredients except yeast, stabilizer and red grape concentrate. Stir well to dissolve sugar, cover well, and set aside for 24 hours. Add yeast, cover, and daily stir ingredients and press pulp in nylon bag to extract flavor.
When specific gravity is 1.030 (about 5 days), strain juice from bag and siphon liquor off sediment into glass secondary fermentation vessel. Fit airlock. Rack in three weeks and again in two months. When wine is clear and stable, rack again and add stabilizer and red grape concentrate. Wait 3 weeks and bottle. Allow a year to mature. It will be worth the wait.
Hibiscus Flower Wine
Your health food market will likely carry Hibiscus sabdariffa flowers already dried and ready to be crushed for tea. I generally buy dried red or purple flowers, which makes a delicious bright red or deep purple wine. The recipe makes one gallon (3.8 L).
Ingredients
- 2.0 oz. (57 g) dried hibiscus flowers
- 2.0 lbs. (0.91 kg) sugar
- 7 pints (3.3 L) water
- 1 1/2 tsp. acid blend
- 1 tsp. yeast nutrient
- 1 pkg Red Star Côte des Blancs wine yeast
Combine water and sugar and put on to boil, stirring occasionally until sugar is dissolved. Tie flowers in nylon straining bag and put in primary. Pour boiling sugar-water over flowers and stir in all ingredients except yeast. Cover primary until water cools to room temperature. Squeeze flowers to extract maximum flavor and then discard flowers or reuse for tea.
Add activated yeast, re-cover the primary, and stir daily until active fermentation dies down (7–8 days). Rack to secondary, top up with water if required and fit airlock. Ferment 30 days, then rack into clean secondary. Refit airlock and rack again after additional 30 days. Wait a final 2 months, rack again and stabilize wine. Sweeten to taste and set aside 30 days. Bottle in dark glass. May drink immediately, but improves in six months.
Apple Wine
In all apple wine recipes, unless varieties are specified, the more acid and sour varieties are preferred. Sweeter eating varieties, especially Delicious, are to be avoided. Winesap, McIntosh, Jonathans, and crab apples are best. This recipe makes one gallon (3.8 L).
Ingredients
- 12 lb. (5.4 kg) of ripe, windfall apples (mixed varieties are OK)
- 2.0 lb. (0.91 kg) finely granulated sugar
- 5 pints (2.4 L) water
- 1 1/2 tsp. pectic enzyme
- 1 crushed Campden tablet
- 1 tsp. yeast nutrient
- 1 pkg Sauterne or Champagne yeast
Chop the apples into small pieces, avoiding the core so as not to cut any seeds. Put into primary fermentation vessel, add the water and crushed and dissolved Campden tablet and cover the mixture with sanitized muslin or towel. The water will not cover the apples, so stir every two hours to bring bottom apples to the top.
After 12 hours, add the pectic enzyme and yeast nutrient, recover the primary, and continue occasional stirring to circulate the fruit. After additional 12 hours, add activated yeast. Keep covered and in a warm place for 7–10 days, stirring twice daily.
When the vigorous fermentation of the pulp subsides, strain the juice through a nylon straining bag and set aside, then firmly (but not too hard) press the juice from the pulp and add this to the set-aside liquid. Slowly stir in the sugar (finely granulated) and continue stirring until completely dissolved. Pour into secondary fermentation vessel and fit with airlock. Rack when clear, allow another 60 days, then rack again and bottle. Allow six months before tasting, one year for best results.
Fig Wine
This recipe is a “pure” fig wine (no raisins, dates, bananas, or grape juice). Thus, it will not really mature until a year in the bottle, but can certainly be enjoyed after 3 months. Use only the sweetest, most tasty, almost over-ripe figs. Makes one gallon (3.8 L).
Ingredients
- 4 1/2 lb. (2.0 kg) figs
- 6 1/2 pints (3.1 L) water
- 1 3/4 lbs. (0.79 kg) granulated sugar
- 3 tsp. acid blend
- 1 crushed Campden tablet
- 1 tsp. yeast nutrient
- 1 pkg Red Star Montrachet wine yeast
Cut off stems and chop figs. Place in large, fine mesh nylon straining bag, tie top, and put in primary fermentation vessel. Stir in all other ingredients except yeast. Check specific gravity (should be 1.085 to 1.095; if not, add up to 1/4 cup more sugar, stirring very well before re-checking gravity). Cover with sanitized cloth.
Add activated yeast after 12 hours and stir twice daily, pressing pulp lightly to aid extraction of juices. When specific gravity reaches 1.040 (3 to 5 days), hang bag over bowl to drain, lightly pressing to aid extraction (do NOT force or you will cloud the liquid). While pulp drains, siphon liquid off sediments into secondary. Add drained liquid and discard pulp. Fit airlock to secondary. Ferment to dryness (specific gravity 1.000 or lower — in about 3 weeks).
Rack into clean secondary, top up to 1 gallon and reattach airlock. Rack again in 2 months. Rack again and bottle when clear. This is a good dry wine. If you want it sweeter, stabilize after last racking (but before bottling), then add 1/4 lb. dissolved sugar per gallon. Wait three weeks and bottle. This wine can be consumed young (after 3 months in bottle), but will improve immensely with age.
Peach and Banana Wine
Peaches have very little body and bananas compensate for that. Select only the best tasting peaches. My favorites are Georgia Belle and Red Contender, in that order. Makes one gallon (3.8 L).
Ingredients
- 4.0 lb. (1.8 kg) ripe peaches
- 1.0 lb. (0.45 kg) bananas
- 1 3/4 lbs. (0.79 kg) granulated sugar
- 1/2 tsp. citric acid
- 3/4 tsp. pectic enzyme
- 5 1/2 pints (2.6 L) water
- 1 crushed Campden tablet
- 1 tsp. yeast nutrient
- 1 pkg Lalvin ICV-D47, (Côtes-du-Rhône) or Champagne yeast
Peel bananas, slice, and place in saucepan with one pint boiling water. Simmer 35 minutes, then skim any scum off the surface and strain without squeezing.
Meanwhile, destone and slice peaches into primary. Mix half the sugar in with peaches and cover with four pints boiling water. Stir to dissolve sugar. When cool, add banana water, citric acid, crushed and dissolved Campden tablet, and enough water to bring total to one gallon. Cover and wait 10–12 hours. Add pectic enzyme, re-cover and wait another 10–12 hours. Stir in yeast nutrient and activated yeast starter. Re-cover the primary and ferment 3–4 days, stirring at least twice daily.
Pour through nylon straining bag, squeezing well to extract as much juice as possible. Stir in half the remaining sugar until dissolved, transfer to secondary and fit airlock without topping up. In 5 days add remainder of sugar, stir well to dissolve, and refit airlock. When active fermentation dies down, top up and refit airlock. Rack every three weeks until fermentation is complete and wine clears. Stabilize and sweeten to taste if desired. Wait additional three weeks and rack into bottles. Allow to age 3-6 months before tasting, and then chill and enjoy.
Wine Making Supplies and Equipment
After all the information we have supplied here you might have interest in making your own wine. To help you get started we have added a list of equipment you need to get.
- Primary & Secondary Fermenters/Carboys: These can be made of plastic or glass, with both having pros and cons to using either one, and are used for the fermentation of your wine. A primary fermenter is used for the first 5 to 7 days of fermentation. The secondary fermenter is used to finish the fermentation.
- Air Lock & Rubber Stopper: The rubber stopper is used to attach the air-lock to the top of the secondary fermenter. The rubber stopper has a hole in the center to which the air lock is placed. The air-lock allows gases to escape from the secondary fermentation without allowing: air, bugs, mold, bacteria and other little nasties from getting in.
- Spoon: You need a long stirring spoon so that you can reach in the fermenters and stir the wine. May not seem all that important now, but once you get in the middle of making your wine having a long-handled spoon will be one piece of wine making equipment you’ll be glad you got. Stirring allows you to mix the wine making ingredients and break up any pulp that may rise to the top during the primary fermentation.
- Siphon Hose and Racking Cane: These are pieces of equipment that are needed for the transfer of your wine from one fermentation vessel to another, and also from carboy to bottle. The siphon hose ensures a smooth transfer from one vessel to the next, while the racking cane allows you to point where you are drawing the wine from.
- Wine Thief: The wine thief is great for taking small samples of wine out of your fermenter in order to test for various things like pH, specific gravity, or to just give the wine a little taste! If your fermenters happen to have a spigot on them, this will be one of wine making equipment you can scratch off your list. Just take your samples for testing from the spigot.
- Wine Hydrometer: Once you take a sample of wine out from the fermentation, you can test the specific gravity of the wine in order to determine if the fermentation is complete, or if you need to make a few adjustments before moving on. The wine hydrometer will help you measure specific gravity with ease, and is a piece of equipment you really can’t go without.
- Acid Test Kit: Using a sample of wine, you can test its acid level with an acid test kit to determine if it’s where you want it to be, or if you need to make a few adjustments. Wines too high in acid taste sharp or tart. Wines too low in acid taste flat and insipid. If you have a reliable wine recipe you are following or are making wine from a wine ingredient kit this may not be necessary, but otherwise, you should absolutely have this on your wine making equipment list.
- Wine Bottles and Corks: You’ll need lots of clean wine bottles and wine bottle corks so you can put your finished wine into bottles and seal them for storage and later consumption! You can get by with using mushroom corks, but if you want to use a standard wine bottle cork you will need a wine bottle corker to press them into the wine bottle.
- Cleaners/Sanitizers: Keeping your wine making equipment free of contaminants is important. Residual amounts of mold or bacteria can potentially grow and spoil a wine. This is why you should sanitize any equipment that come into contact with the wine. Cleaners such as Basic A work will for this purpose.
There are plenty of pieces of home winemaking equipment that we didn’t mention that could also help you in your craft, though acquiring what’s on the list above will allow you to get off on the right foot and create a fantastic homemade wine
White Wine Making Process
Step 1: Harvest
The first decision is when to harvest. The longer the grapes are left to ripen on the vine the more sugars accumulate in the grapes. When to harvest depends on many things. Winemakers use a mix of techniques from physically tasting the grapes to the use of technical analysis. The style of wine being made has a major bearing on when to harvest.
In the northern hemisphere most grapes are harvested between early September and November. Once harvested the grapes are usually sorted to eliminate bunches that don’t make the quality grade required by the winemaker.
Step 2: Crush and Destem
Once sorted, if it is a white wine the grapes are usually destemmed and gently crushed, just enough to break open the skins. Crushing enables the winemaker to extract more juice from the berry during subsequent pressing.
For certain wines, such as Champagne and sparkling wines, this step is avoided, and the grapes undergo instead what is called ‘whole-cluster pressing’.
Step 3: A ‘Cold Soak’
Before pressing, some winemakers elect to do what is called a ‘cold-soak’ or pre-fermentation maceration (PFM). As white wines are fermented off the skins, the PFM is used to extract additional aromas and flavor from the skins into the juice. This was a particular trend for most white wines a few years ago but has somewhat subsided.
Step 4: Pressing the Juice
Next step is pressing the juice from the skins. The gentler the pressing the finer the juice, or ‘must‘ as it is now called.
Once you have the must, it is ready for fermentation. Usually there is a period of cold settling – to allow solids in the juice to fall to the bottom – which are then racked off leaving a clearer juice. Each winemaker has his/her own preference on must clarity.
Step 5: Alcoholic Fermentation
The important bit – converting the sugars to alcohol. Fermentation requires the action of yeasts to convert the sugars to alcohol. These yeasts can be the natural yeasts from the vineyard, or specially selected, cultured yeasts.
Cultured yeasts are much easier to control and ensure a more consistent fermentation. Natural yeasts, on the other hard, ensure a truer manifestation of the vineyard’s terroir, but are less reliable. Fermentations can be more challenging and can sometime be a bit sluggish. Each has its own set of advantages and disadvantages.
Fermentation vessel is a big decision – oak, stainless steel or other inert vessel. Because of its affinity with oak, Chardonnay is often fermented in small oak barrels. In contrast aromatic grapes such as Riesling or Sauvignon Blanc are typically fermented in stainless steel or other inert vessels to preserve their vibrant aromas and flavors.
Fermentation temperature also impacts the wine. Overall, white wines are typically fermented at cooler temperatures than red. The cooler the temperature the more well-preserved the primary fruit aromas and flavors. Warmer temperatures make for a more structured wine.
Typically when the yeasts have converted all the sugars to alcohol the fermentation is over and you have a dry wine. However, if the intended style off dry or medium sweet, the winemaker will stop the fermentation before all the sugars have been converted, leaving the desired amount of residual sugar.
Step 6: Malolactic Fermentation (MLF)
After the alcoholic fermentation, some white wines go through a process called ‘malolactic fermentation’. Technically this is not a true fermentation but rather a conversion of any remaining ‘tart’ malic acid (think green apples) in the wine to the softer lactic acid (think milk). Once again, Chardonnay is one of the main wines to undergo full or partial malolactic fermentation. Ever notice that many Chardonnay wines have a buttery note? Well, in part due to this process.
Fermentation temperature also impacts the wine. Overall, white wines are typically fermented at cooler temperatures than red. The cooler the temperature the more well-preserved the primary fruit aromas and flavors. Warmer temperatures make for a more structured wine.
Typically when the yeasts have converted all the sugars to alcohol the fermentation is over and you have a dry wine. However, if the intended style off dry or medium sweet, the winemaker will stop the fermentation before all the sugars have been converted, leaving the desired amount of residual sugar.
Step 6: Malolactic Fermentation (MLF)
After the alcoholic fermentation, some white wines go through a process called ‘malolactic fermentation’. Technically this is not a true fermentation but rather a conversion of any remaining ‘tart’ malic acid (think green apples) in the wine to the softer lactic acid (think milk). Once again, Chardonnay is one of the main wines to undergo full or partial malolactic fermentation. Ever notice that many Chardonnay wines have a buttery note? Well, in part due to this process.
Step 9: Finishing
The next step is ‘finishing’ before bottling. This involves a number of steps whereby the new wine is clarified and stabilized. Winemakers try to minimize the number of treatments, whilst at the same time ensuring that the wine is physically, chemically and microbially stable. For example wines with residual sugar need to be sterile filtrated to ensure that there is not even one little yeast cell (aka “yeasty-beasty”) remaining that could start a re-fermentation in the bottle.
Step 10: Packaging
Once all the finishing procedures are over, the wine is ready for packaging, in bottle or whatever packaging format is desired for the wine.
After a further period of settling the wines typically start to make their way to market for us to enjoy.
Red Wine Making Process
Step 1: Grow Grapes & Harvest Them
A grape vine produces grapes after its third year. Regardless of the vine’s age, grapes only grow on stalks that are one year old. Because of this, viticulturists prune their vineyards back every year to encourage new growth.
Grapes get harvested for wine when they are perfectly ripe. Unlike other fruits (like avocados or bananas), grapes don’t continue to ripen once they’re picked.
Step 2: Crush The Grapes
Red wine grapes are typically destemmed to reduce harsh-tasting tannin. Additionally, some wineries use sorting table conveyer belts to further remove leaves or bad grapes. By the way, some red wine varieties (like Pinot Noir) do well fermenting with whole clusters!
Grapes go into a fermentation tank with their skins, seeds, and all. Sometimes, the crushed grapes are chilled (called “cold soaking”) so flavor and color in the skins transfers into the juice. Red wines get their deep color from their grape skins.
Step 3: Fermenting Grape Sugar into Wine
The fermentation starts when a yeast culture grows by eating grape sugar and making alcohol. There are many different kinds of yeast variants. Some wineries let yeast happen naturally and we call this a “indigenous” or “native” fermentation. Others inoculate their juice with a special house yeast or purchased commercial yeast to control the flavor.
Red wines typically ferment at warmer temperatures than white wines. Also, red wines commonly ferment until all (or nearly all) the sugar is consumed. This makes red wines “dry” (as in, not sweet).
Step 4: Fining and Racking
After the wine finishes fermenting it’s quite cloudy from the yeast lees and grape bits. So, winemakers let their wines “rest” a while in barrels or tanks and add a clarifying agent (like bentonite – a type of clay) to glom onto dissolved proteins. This process is called “fining” and it leaves the wine clear.
With all the proteins in the bottom of the tank, the clear wine gets “racked” (it’s more like siphoning), into a fresh tank or barrel.
By the way, some winemakers avoid fining and simply wait for the wine to settle on its own with time.
Step 5: Filtering, Aging, and Bottling
Red wines age for anywhere from 4 weeks to 4 years (or longer!) before being bottled. Aging red wines in barrels gives them rich flavors of vanilla and baking spice from the oak.
Before wines get bottled they’re often filtered one last time. Filtering removes any small microbes that cause wine to go bad. Of course, not all wineries do this because some believe filtering removes what makes a wine taste so great. Well-made unfiltered wines have the potential to age a long time too.
What Are The Top 10 Most Popular Wine
Popular White Wines
Chardonnay:
Chardonnay is a medium to full-bodied white wine that is grown globally but holds its own as the most popular wine varietal in America. The best types of Chardonnay are oaked-aged and have a buttery mouthfeel. Crisp fruit flavors like apple and pear are combined with citrus aromas and hints of spice and vanilla. Drink Chardonnay with creamy sauces or chicken dishes for a perfect pairing.
Riesling:
Riesling is the flagship wine of Germany, originating in the country’s Rhine Valley. Riesling is at first sweet and acidic but balances out with honey flavors and a significant minerality. Riesling is great for pairing with spicy Asian cuisines or rich foods like pork.
Pinot Grigio:
Pinot Grigio is a quintessential Italian white wine. This wine type can be described as light, dry and refreshing with crisp fruit flavors like apple or pear. A different style of cultivation produces more medium-bodied wines that have floral aromas and a hint of minerality. Although both styles can be considered the same wine, the latter style typically bears the name Pinot Gris rather than Pinot Grigio. Both Pinot Gris and Pinot Grigio are best paired with seafood, more specifically shellfish.
Sauvignon Blanc:
Sauvignon Blanc is a light, dry and crisp white wine that has citrus notes and grassy aromas. When aged in oak, the wine has spice and vanilla flavors, as well. Although it tastes great with grilled chicken or vegetables, Sauvignon Blanc is a perfect pair for scallops or other shellfish.
Popular Red Wines
Cabernet Sauvignon:
Cabernet Sauvignon is the gem of Napa Valley. A full-bodied red wine, “Cabs” can typically be described as rich and robust. Most commonly aged in French oak, dark fruit flavors are combined with spices and other earthy aromas. The perfect pair for a glass of Cabernet Sauvignon is a juicy steak or other form of red meat.
Pinot Noir:
Pinot Noir is a light to medium-bodied red wine whose grapes flourish in colder climates. Described as smooth and fruit-forward, Pinot Noir has red-fruit aromas, most commonly cherry, and just a hint of spices and earthiness. A great Pinot Noir typically has a long, lingering finish. Pinot Noir pairs best with wild game or veal.
Syrah:
Syrah is a bold and rich red wine. Notes of dark fruits, pepper and spice are staples of the varietal. Australia’s style of Syrah is known as Shiraz and is much more sweet and jam-like than the “Old World” style of Syrah. Both versions are rich in fruit flavors, yet notably complex. Syrah is perfect for hearty and rich meat dishes, most specifically venison.
Zinfandel:
Zinfandel is one of the only grapes thought to be indigenous to America. Grown exclusively in California, this versatile wine has a range of different styles. Most commonly, Zinfandel is aged in American oak, giving the jam-like ripe fruit flavors an earthy spiciness. Zinfandel is also known as one of the more alcoholic wine types, packing a rich punch. Although it is known to go great with a wide variety of foods, this varietal’s perfect pairing is smoked or grilled meats.
Malbec:
Malbec, although originally produced in France, has been popularized by the Mendoza region in Argentina. This wine is a full-bodied, deep red wine that has dark berry fruit flavors and moderate tannins. Malbec is a great pairing for steak or other grilled meats.
Merlot:
Merlot is a popular wine of America’s western growing regions, while remaining one of the more prominent grapes in Bordeaux. Merlot is much like Cabernet Sauvignon only more fruit-forward. Red fruit flavors and aromas are made complex by smooth tannins, as well as spice and vanilla notes, which are evidence of oak-aging. Merlot tastes fabulous when paired with a hamburger or, more exotically, with lamb or duck.
Most wine-serving establishments in America will have these wine types, but there are many great varietals beyond the ten listed above. Region, cultivation style and climate all make each varietal different, which is why wine is such a fascinating beverage. When looking to branch out and try new types, we recommend you get an idea of what you like in a wine and ask for recommendations based on those certain traits.
Which Wine is Best For Ladies
1. Château d’Esclans Rock Angel, France
This medium-bodied dry rosé from Provence in France really hits the palate with the perfect blend of Grenache and Rolle with intense fruity flavors to give a lasting finish. Rock Angel is aromatic and hits the palate with an authentic citrus taste of strawberries, raspberries, and lemons along with slight hints of lilac. This pale pink wine is highly acidic and pairs well with some good radish, chicken, and ham.
2. Happy Bitch Rosé
Made for women and by women, Happy Bitch Rosé is the quintessential
choice for a night in with your girlies! A perfect fusion of Chardonnay
and Pinot Noir with flavors of overripe strawberry, melons, and rich
orange blossom gives it an off-dry texture that is irresistible.
This rosé works amazingly well with salmon dishes and even chicken wings.
3. Bottega Sparkling Moscato
Made to perfection in the vineyards of the cool climate of Veneto, Italy, this sparkling beauty promises elegance in a glass. The sweetness that is balanced with some crisp acidity is a great finesse. The slight notes of pears, apples, and plums feel fresh and definitely are a treat for your taste buds. For the aesthetic lovers, the posh packaging and the fizzy mousse certainly is a cherry on top.
Some good old salty and crunchy cheddar to counterbalance the sweet acidity and, of course your group of girlfriends are all that is needed to make your Sparkling Moscato taste better.
4. Chocolate Shop, The Chocolate Lover’s Wine
Chocolates are always a good idea, they never fail to turn a gloomy
day into a better one, and wines can never make you sad. Creamy dark
chocolate and firm wines in one single bottle is the ultimate dose of
therapy, this pair is au naturale! A blend of deep reds including Syrah,
Cabernet Franc, Merlot, and Cabernet Sauvignon with rich chocolate is
aged well in a good oak to give it structure. Dense aromas of cherries
and velvety chocolate along with accents of creamy mocha and vanilla
really leaves you lingering for more.
Creme de Cocoa and Chocolate Strawberry are some of the handpicked flavors that need to get into your cellar now!
5. Cabernet Sauvignon
Robust and structured, the earthy flavors of this wine gives it a very hearty finish. The strong taste of black fruits such as thick-skinned grapes, blackberries and black cherries accompanied with the hints of licorice, tobacco and black pepper and just a slight toss of vanilla makes this full-bodied wine is a perfect choice for women who love their oaky wines. This dry wine tastes even better with finely cooked mushrooms and short ribs.
What is The World’s Best Selling Wine
Cabernet Sauvignon is by far the most popular red wine in the world. Cabernet is grown in just about every major wine producing region, and in a diverse array of climates. Cabernet Sauvignon originated in France, as an accidental crossing of Cabernet Franc and Sauvignon Blanc. This happy accident resulted in the popular wine we love today.
Cabernet Sauvignon owes much of its modern popularity to the Napa Valley wine region in California, where producing world quality Cabernets has become an art form. One of the primary drivers of Cabernet’s popularity is its ease of growing.
The grapes vines are naturally hardy and grapes are thick-skinned, ensuring successful growth even in unfavorable conditions. As a result, it is widely cultivated and a very popular wine varietal in Australia, Italy, South Africa and South America.
How to Start a Wine Business
Starting your winery is going to take you quite a bit of time, but if you follow these steps you’ll be off to a good start.
Step 1: Come up With a Name and Choose a Business Entity
Before you get in too deep with creating your wine business or winery, you need a name and a business entity in mind. You should make sure that the name you want for your winery is available and that some other winery out there hasn’t already snagged it. This will be hugely important when it comes to actually selling your wine too because a name can go a long way with branding to make your wine stand out and be memorable.
You can check to make sure that the business name you want is available and you can probably reserve it online. Simply check with the Secretary of State’s office in your state. Keep in mind you also want the domain name for the name you choose to be available so you can create a website and other online marketing tools, like an Instagram account.
Another early step in our “how to start a winery” guide is to choose a business entity for your new wine business. There are plenty of entities to choose from, but you might want to go with a limited liability company, as it offers you certain protections an individual might not receive, while allowing for you to be taxed either as a sole proprietor or corporation.
Step 2: Write a Business Plan
The next step in how to start a winery, is to come up with and write a business plan. You’ll refer to this plan plenty in the following months and years, so it’s best not to skimp on any of the information and to take your time creating it.
When writing your business plan you should include extensive research about the industry and competition. Be sure to include a summary of the business to start, and then a company overview, market analysis, specifics on the product you plan to offer, financial projections, and more.
You can either use a business plan template or come up with your own. Either way, it should be comprehensive and include quite a bit of research. It’s also not a static document—it should be updated as your company grows and your goals change. Try and think of it from a potential investors perspective: What information would you want included if you were looking into investing in a company?
Step 3: Navigate Licensing, Permits, and Taxes
The winemaking industry is heavily regulated, so licensing and permits can get complicated—so complicated, in fact, that there are wine-compliance companies that do nothing else but help winemakers navigate local and federal wine regulations.
When considering how to start a winery, you’ll need to first apply for and acquire a permit to legally operate your winery, but the regulations don’t stop there. You’ll also need to register your business with the FDA, comply with local and state laws, and even have your wine label approved by the Alcohol and Tobacco Tax and Trade Bureau (TTB). And if you’re selling across state borders, it gets even stickier, as some states have their own laws about direct shipment. Once you’ve crossed the licensing and permit logistics off your list, you’ll need to stay on top of your state’s excise and sales taxes on wine, too.
If you’re uncomfortable with keeping all of this in order, we suggest you consult a lawyer with experience and expertise in the winery field. The last thing you want is to get things up and running only to find you registered incorrectly, forgot to get a permit, or haven’t been granted the necessary licenses.
Step 4: Create a Budget
Once you have your business plan and you know what licenses and permits you need—and how much they’ll likely cost—you can create your business budget with all of those costs in mind. Being “all in” often comes with a hefty price tag. William Foley, the founder of Foley Wine Group, says it didn’t take long before he ended up spending $15 million after purchasing 460-acres in California’s Santa Barbara County nearly 20 years ago.
Since then, the vineyard prices have only gone up, especially in regions like Napa Valley where land is scarce. Vineyards in Northern California can cost $11,000 to $30,000 per acre, but in the next 30 years, the price tag is predicted to reach $1 million per acre.
Of course, you don’t need to be in California to start a winery—in fact, there are wineries in all 50 states—and land prices are certainly lower beyond the Golden State. If you have the space and the land quality for it, you can even start a (very small) winery in your own backyard, which cuts real estate costs entirely. In that case, installing your vineyard can cost between $35,000 and $45,000 per acre.
After purchasing or developing your plot of land, you also have to think about the annual establishment costs needed to keep those vines alive, which adds around $15,000 to $20,000 per acre in the first three years. Again, keep in mind that you still don’t have any grapes yet at this point to make your wine. Next, vineyard owners have to invest in machinery and equipment, which doesn’t come cheap. Lastly, most vineyard owners want to build a production facility and tasting room, since 90% of revenue will come through your tasting room.
With all these costs, we recommend opening a business bank account to keep your business finances separate from your personal finances.
Wine Business Startup Costs to Consider
In your first year alone, you’ll need to invest some serious capital into your wine business. In this industry in particular, investing in expensive fixed assets—think land, machinery, and equipment—is non-negotiable.
While your expenses will be ongoing, the vast majority of your investment will go toward establishing your vineyard’s infrastructure and operations during your first two years of business. Jerry White of Cornell University lists the following as expenses to consider within your first two years of starting a wine business alone:
- Land
- Equipment, including refrigeration, cellar equipment, winery buildings, trucks, and receiving equipment
- Vines
- Fermentation and storage
- Cooperage
- Bottling line
- Office
- Tasting room
Other costs to consider include payroll
for your staff, shipping, marketing, and insurance. In all, White
estimates that your first five years require a capital investment of
over $1.5 million.
Step 5: Get Funding for Your Wine Business
Most aspiring vintners, especially those just learning how to start a winery, can’t cough up $1.5 million all on their own, so they’ll need to turn to some form of outside financing. Like any startup, the newest vineyards may have trouble securing debt-based small business loans, so initial funding will likely come largely through a combination of equity financing, friends and family loans, and bootstrapping. That said, vineyards may still have a shot at approval for a traditional small business loan—they just have to know how to navigate the lending landscape.
Also know that, regardless of which type of loan you apply for, you’ll have the best chances of approval with a high personal credit score, profitability, time in business, and a strong cash flow, so the best time to apply for a loan will most likely be after your busy season
How to Make Money in a Wine Business
To ensure maximum profit, we will take you through the starting points in developing your own fine wine collection, from which wines to pick up, to how to store them.
1 Do your research. Pick a wine that is likely to increase in value – not just a wine that you personally enjoy drinking. Speak to your local independent merchant who is likely to be knowledgeable about what might be a good investment.
2 | Whether you plan to sell it on or not, storing your wine safely and correctly is the only option to protect your investment.
A consistent temperature of around 13˚C is ideal for wine, so forget the spare bedroom. You also need a good amount of humidity to stop the corks drying out and compromising the seal. 80% is ideal, whereas standard humidity in a London home is around 45-55%.
3 If you want to sell on your wine as a serious investment, then provenance – in other words the ability to prove where you wine has come from and most importantly the conditions in which it has been stored over the period of time you’ve owned it – is essential.
4 Point 2 and 3 mean that the only option if you’re serious about your wine is to use a specialised storage facility, such as Octavian Wine Vaults, with climate control, full insurance, 24-hour security, and the necessary tools to help you prove and authenticate your wine’s provenance.
It’s an additional cost, but one that’s a fraction of the wine’s value, and moreover, it ensures your wine maintains its value. After all, you won’t be able to resell a case of semi-evaporated wine from the cellar-cum-box room at anywhere near its full potential value.
5 The most important rule: Refrain from expensive dinner party raids on your most treasured wines that aren’t ready to drink yet – a mistake that has led many a wine collector towards a far worse headache the morning after than they (or their bank manager) ever anticipated.
How Much Can You Make With Traveling Vineyard
As a Wine Guide you can make 15% – 35% in commission based on monthly sales volume and payouts happen 3 times a month via direct deposit. Wine guides also receive 20% discount off of wine and these sales count towards your monthly volume.
With wines priced between $12-18 and other accessories for purchase, tastings bring in about $417 in sales per event, but you can certainly make more. Some Wine Guides bring in an average of $500-$1000 per event.
Orders can be shipped to the host or directly to the consumer, so you could make $62-$145 a night in sales based on a party that totaled $417 in sales, but of course you can also potentially build a sustaining business with reorder, or have larger parties that bring in more.
How Much Does it Cost to Make Your Own Wine Brand
According to a study at Washington State University, operating a winery costs between nearly $600,000 and $2.3 million. The investment depends on the size (amount of cases) you plan to manage. The hard part comes in the years of blood, sweat, and tears. That’s what it takes to get the business even close to what you dreamed of. Still dead set on making your winery dream a reality? Take this advice with you during your planning.
A winery owner will invest much more than they gain at first
Expect high numbers for how much does it cost to start a winery. That holds true whether you purchase an established one or build one from the ground up. What used to $100,000 per acre is now around $300,000. Later on, you can still look forward to annual maintenance of close to $20,000 per acre. Add in machinery and the cost to build a production building and tasting room.
There’s receiving equipment, cellar equipment, and material handling. For storage you need a refrigeration system, fermentation, and cooperage. Building a tasting room isn’t a requirement. Most people still chooses to. Not doing so leaves a bulk of money on the table from missed sales. 90% of your total sales to be exact. You also have to think about the funds you’ll have to kick out for permits. This means you shouldn’t expect to gain or even see a return in the first several years.
What is The Profit Margin on Wine
In 2018, the total U.S. wine market value was $70.5 billion. 67% of that was domestic wine, and 33% imported.
According to the 2019 SVB Wine Industry Report, U.S. wine consumption has gone steadily up from around 370 million gallons in 1994 to just under 800 million gallons in 2018. That’s about a 116% increase in volume. Of course the U.S. population increased 22% over the same span. Nevertheless, an impressive overall growth in gallons consumed.
The overall wine industry growth rate is predicted to be between 4% to 8% in 2020 and beyond. Premium wine sales went through the roof and restaurant sales of wine have been consistently higher compared to the years before.Those who earn one of the levels of sommelier certification and other trained wine professionals are expecting a 9% growth outlook through 2026, according to the U.S. Bureau of Labor Statistics.
To fully understand why the wine industry is so profitable, let’s look at wine profit margins and markups.
The wine bottle pricing and profit margin depends on where it’s sold. Restaurants and bars have around a 70% profit margin on wine, while retailers are typically between 30–50%. Distributors and wholesalers tend have a wine profit margin of around 28–30%, and producers and vineyards will make about 50% gross margin.
The U.S. wine industry has a three-tier sales structure. Each tier imposes its own markups and retains a certain profit margin upon selling a wine bottle to the next tier. The system consists of the following:
Producers
They are mostly wineries, but can sometimes be importers as well. Let’s use a winery that operates on a 50% gross margin as an example. That winery sells a case of wine for $100, which is around $8 or more per bottle. They make $50. That covers administrative costs, taxes, and profits.
Distributors
As the middle person in the three-tier structure, distributors make profits by obtaining the wines from the producers. They then sell them to retailers and other buyers. Most distributors work on a 28 to 30% profit margin. But the actual number depends on the retailers’ buying power and their relationships with the producers.
Retailers
At this tier, you will notice a significant increase in profit margins. While many retailers generally aim for their margins to be between 30 to 35%, the range can sometimes go up to 50%. At this tier, wine can be sold on premise and off premise.
In general, the wine industry as a whole is very profitable, as the wine industry growth rate suggests. For restaurants and bars, wine is easily the most profitable item on the menu. And wine, in large part, drives a lot of the profitability of bars. Compared to food, it has the same cost of sales but doesn’t require as much on labor and operating expenses needed to present it.
How do Wine Brokers Get Paid
A wine broker is an independent contractor who acts as the agent in the sale of wine products. Typically, wine broker’s services are contracted by smaller wineries and wholesalers who cannot maintain their own in-house marketing representatives.
A wine broker means every person, other than a salesman who is regularly employed by a licensee, who engages as an agent in the sale or purchase of wine for or on behalf of another or others for a fee or commission
As of Jun 3, 2020, the average annual pay for a Wine Broker in the United States is $57,398 a year.
Although you might see annual salaries as high as $125,500 and as low as $15,500, the majority of Wine Broker salaries currently range between $32,000 (25th percentile) to $72,500 (75th percentile) across the United States. The average pay range for a Wine Broker varies modestly (up to $40,500), which suggests there may be fewer opportunities for advancement based on skill level, but increased pay based on location and years of experience is still possible.
How Much Does a Wine Shop License Cost
The cost of obtaining a liquor license can vary greatly depending on the state. Full liquor licenses can range from $12,000 to $400,000, while beer and wine liquor licenses can cost as low as $3,000. The best way to estimate the cost of a liquor license is by chatting with bars and restaurants in your local area that are similar in size and scope to yours.
Is Wine Shop a Profitable Business
Wine store business is one of those lucrative businesses that have been around for quite some time now.
The reason for this can be attributed to the fact that, unlike most businesses, there has been a time when the business was choked up by dealers.
In other words, people don’t usually venture into it. And the reason for this might be because of the high cost of starting the business.
How do You Price a Bottle of Wine
How do you decide on the best wine bottle price for your wine price list?
- First, do a little soul searching. What kind of restaurant or bar you are will tell you how to price your wines.
- Then, determine which bottles on your wine list or wine list app get which markup.
- And finally, be flexible and commit to dynamic pricing.
A Wine business can be very lucrative if you have the capital and the knowledge required to excel. The information presented in this article if followed properly can get you started in your wine career.