Fielding a Cooperative and Winery

1. Fielding a Cooperative and Winery Richard Fuller SO MD Wine Growers Cooperative President 2008-2010 Winery Manager 2010-11

2. THE COOPERATIVE • HOW WE STARTED • Tobacco Buy-out • Local Grape Growers • Amateur Wine makers • HOW WE DID IT • COMMITTEES • GRANTS • USDA/MD/TRI-COUNTY

4. THE COOPERATIVE • WHY • Local Market • Eventual Profit Share • WHO • Members • Committee

6. THE COOPERATIVE • RESULTS • 16 MEMBERS • FORMED A CORPERATION • APPLIED FOR GRANTS • WORKED WITH STATE, COUNTY, TOWN • GREAT EFFORT AND COOPERATION

8. THE COOPERATIVE • RESULTS • REFURBISHED OLD STATE HIGHWAY GARAGE • LANDSCAPE AND PARKING IN A NEW PARK • 10,000 GALLON WINERY WITH FULL EQUIPMENT

10. Everything Else • Members • Start – 16 • Now – 18 but we lost some along the way • Vineyards – 14, some are partners • Grape Varieties – over 20 • Mixed blessing for the winemaker • Lots of blends

12. Everything Else • Production • Planned – 5000 gallons then step to 10,000 • Current – 7100 (reduced by hurricane) • Income • Planned start $250K • Actual $100K (lots of volunteer hours) • 2010 • 2011 • Today

14. Everything Else • Operations • We have 5500 gallons to bottle • 25000 bottles from 2009/2010 to sell • 2011 red wine in barrel for next year • Low debt • Lots of friends

16. THE WINERY • INVOLVEMENT • COMMITEMENT

17. THE WINERY • GREAT GRAPES • EDUCATION • RESPONSIBILITY

18. GETTING STARTED • BUSINESS PLAN • Understand your area • LOCAL SUPPORT • DISTRIBUTION • DIRECT SHIPPING • TASTING ROOM

19. GETTING STARTED • BUSINESS PLAN • Define the wines that you will produce • Dry wines win awards • Sweet wines pay the bills • Involve marketing • Generally define your logo and labels • One label or two?

20. GETTING STARTED • BUSINESS PLAN • Know your people – do you have: • Winemaker • Marketing genius • Grape growers • Web site and twitter/facebook skills • If not, hire experts and/or consultants • Use your members, make teams, keep them involved!!!!!

21. GETTING STARTED • BUSINESS PLAN • Revise or update as information changes • Non-profit or for profit, one company or two?

22. GETTING STARTED • Financial Plan • Fully fund your plan! • One of our most important lessons • Be very detailed • Build a budget for the first 2 years of operations

23. GETTING STARTED • Marketing Plan • Hire a Professional, but work with them • Understand your market • Plan Tasting Room staffing • Plan off-site event staffing • Will you support bus tours at the tasting Room?

24. GETTING STARTED • Feasibility Study • Do one, even if not required by your lenders • Build your “cost of goods produced” information early and revise often

25. GETTING STARTED • Membership and Incorporation • Membership Requirements • Incorporation Planning

26. IMPLEMENTATION • Early planning • Consultant • Winery • Tasting room

27. IMPLEMENTATION • Early planning • Kitchen • Barrel Room • Case storage • Grower coordination • Price • Quality • Education

28. IMPLEMENTATION • Marketing • Hire a marketing/sales manager • Labels should be done professionally • Websites should be built professionally • Volunteers can do twitter and facebook

29. PRE-PRODUCTION • Operations • Staff • Transactions • Inventory • Tax Reporting • Festivals

30. PRE-PRODUCTION • Marketing • Pricing • Newsletters • Social media • Websites • Paid advertising

31. PRE-PRODUCTION • Winemaking • Grower Training

32. START UP • Plan Plan Plan • Marketing • Operations • Wine Making

33. UP AND RUNNING • OPERATIONS • Staffing • Volunteers • Reports • Supplies

34. UP AND RUNNING • MARKETING • Retail • tasting room • Events • Festivals • Off site • Non-profit • Wholesale

35. UP AND RUNNING • Winemaking • Communication • Equipment replacement/repair • Supplies • Labor • Expect the Unexpected • Keep GREAT records