Step 2: a vineyard, a winery or both
To be clear, a Vineyard is a farm where grapes are grown. This is different from a Winery where wine is made. An Estate Vineyard or Estate Winery is a location that grows its own grapes and makes its own wine both on the same property. Thus, the main focus of a Vineyard is the production of grapes. To succeed at this one should be educated in agriculture, plant sciences and the like.
If ones ambition is to solely grow grapes and not produce wine, it is important to establish viable outlet(s) for these grapes prior to planting. Some Arizona vineyards have started by growing small areas of grapes and selling them to one of the established wineries. As theses vines become successful, more vines are added. This is a very low risk, low cost way to enter into the wine business. The attractiveness of this approach is that, there is both a market for the grapes and excellent technical assistance available on how to successfully grow them.
A Winery operation can exist without owning any vines. Many wine Brands around the world purchase grapes on the open market or establish contracts with grape farmers (vineyards) to purchase grapes. A winery's sole focus is the manufacturing of wines, not the growing of grapes. It is possible to establish a winery in Arizona and purchase Arizona grown grapes. Several of our wineries are doing exactly this, however, at this time there is a limited supply of Arizona grown grapes. State law requires that wine must have 75% Arizona grown grapes to be marketed as an Arizona Wine.
There are several models to create new Arizona wine ventures. Each model involves various stakeholders. Below are some examples:
MODEL 1: EXISTING FARMERS OR AGRICULTURAL LAND OWNERS
· The Goal: To Produce and Sell Arizona Grown Grapes
· The Plan: Current farmers and or agricultural land owners work together with existing winery owner's to begin new grape production.
MODEL 2: INVESTOR(S) OUTSOURCE TEAM
· The Goal: To Create a New Arizona Winery
· The Plan: Investor's team with current farmers, and or agricultural land-owners to create a new Arizona winery.
MODEL 3: INVESTOR(S) MANAGEMENT
· The Goal: To Create a New Estate Vineyard
· The Plan: Investors purchase or lease land, then build a winery in order to create new Estate Vineyard.
The best model is one that meets your vision, goals and business objectives. The AWGA and the state of Arizona have created excellent opportunities for motivated professional to become involved in our growing wine industry.
Resources:
Arizona Department of Agriculture
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