fielding a cooperative and winery richard fuller so md wine growers cooperative president 2008-2010...
TRANSCRIPT
Fielding a Cooperative and Winery
Richard FullerSO MD Wine Growers Cooperative
President 2008-2010Winery Manager 2010-11
THE COOPERATIVETHE COOPERATIVE• HOW WE STARTED
o Tobacco Buy-outo Local Grape Growerso Amateur Wine makers
• HOW WE DID ITo COMMITTEESo GRANTS o USDA/MD/TRI-COUNTY
THE COOPERATIVETHE COOPERATIVE• WHY
o Local Marketo Eventual Profit Share
• WHOo Memberso Committee
THE COOPERATIVETHE COOPERATIVE• RESULTS
o 16 MEMBERSo FORMED A CORPERATIONo APPLIED FOR GRANTSo WORKED WITH STATE, COUNTY,
TOWNo GREAT EFFORT AND COOPERATION
THE COOPERATIVETHE COOPERATIVE• RESULTS
o REFURBISHED OLD STATE HIGHWAY GARAGE
o LANDSCAPE AND PARKING IN A NEW PARK
o 10,000 GALLON WINERY WITH FULL EQUIPMENT
Everything ElseEverything Else• Members
o Start – 16o Now – 18 but we lost some along the
way
• Vineyards – 14, some are partners• Grape Varieties – over 20
o Mixed blessing for the winemakero Lots of blends
Everything ElseEverything Else
• Productiono Planned – 5000 gallons then step to
10,000o Current – 7100 (reduced by hurricane)
• Incomeo Planned start $250Ko Actual $100K (lots of volunteer hours)o 2010o 2011o Today
Everything ElseEverything Else
• Operationso We have 5500 gallons to bottleo 25000 bottles from 2009/2010 to sello 2011 red wine in barrel for next yearo Low debto Lots of friends
THE WINERYTHE WINERY
• INVOLVEMENT
• COMMITEMENT
THE WINERYTHE WINERY
• GREAT GRAPES
• EDUCATION
• RESPONSIBILITY
GETTING STARTEDGETTING STARTED
• BUSINESS PLAN
oUnderstand your area• LOCAL SUPPORT• DISTRIBUTION• DIRECT SHIPPING• TASTING ROOM
GETTING STARTEDGETTING STARTED• BUSINESS PLAN
o Define the wines that you will produce• Dry wines win awards• Sweet wines pay the bills
o Involve marketingo Generally define your logo and labelso One label or two?
GETTING STARTEDGETTING STARTED• BUSINESS PLAN
o Know your people – do you have:• Winemaker• Marketing genius• Grape growers• Web site and twitter/facebook skills
o If not, hire experts and/or consultantso Use your members, make teams, keep
them involved!!!!!
GETTING STARTEDGETTING STARTED
• BUSINESS PLAN
o Revise or update as information changes
o Non-profit or for profit, one company or two?
GETTING STARTEDGETTING STARTED• Financial Plan
o Fully fund your plan!• One of our most important lessons
o Be very detailedo Build a budget for the first 2 years of
operations
GETTING STARTEDGETTING STARTED• Marketing Plan
o Hire a Professional, but work with themo Understand your marketo Plan Tasting Room staffingo Plan off-site event staffingo Will you support bus tours at the tasting
Room?
GETTING STARTEDGETTING STARTED• Feasibility Study
• Do one, even if not required by your lenders
• Build your “cost of goods produced” information early and revise often
GETTING STARTEDGETTING STARTED• Membership and Incorporation
o Membership Requirements
o Incorporation Planning
IMPLEMENTATIONIMPLEMENTATION• Early planning
• Consultant• Winery• Tasting room
IMPLEMENTATIONIMPLEMENTATION• Early planning
• Kitchen• Barrel Room• Case storage• Grower coordination
o Priceo Qualityo Education
IMPLEMENTATIONIMPLEMENTATION• Marketing
• Hire a marketing/sales manager• Labels should be done professionally • Websites should be built professionally • Volunteers can do twitter and facebook
PRE-PRODUCTIONPRE-PRODUCTION• Operations
o Staffo Transactionso Inventoryo Tax Reportingo Festivals
PRE-PRODUCTIONPRE-PRODUCTION• Marketing
o Pricingo Newsletterso Social mediao Websiteso Paid advertising
PRE-PRODUCTIONPRE-PRODUCTION• Winemaking• Grower Training
START UPSTART UP• Plan Plan Plan• Marketing• Operations• Wine Making
UP AND RUNNINGUP AND RUNNING• OPERATIONS
o Staffingo Volunteerso Reportso Supplies
UP AND RUNNINGUP AND RUNNING• MARKETING
o Retail • tasting room
o Events• Festivals• Off site• Non-profit
o Wholesale
UP AND RUNNINGUP AND RUNNING• Winemaking
o Communicationo Equipment replacement/repairo Supplieso Laboro Expect the Unexpectedo Keep GREAT records