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