I am looking to grow my small farming operation into a winery. Does one need to start with vineyards, or can I begin with a tasting room and have my wine custom vinted?
Answer From Expert Roger Bohmrich MW
There are both practical or logistical questions as well as regulatory or legal issues to be investigated and satisfied, prior to taking action. I have copied below the language from the TTB (Alcohol and Tobacco Tax and Trade Bureau) citing the first steps which are required. As for the actual business model, it is possible to operate in many regions without owned vineyards, provided you have confirmed the availability of raw material, either grapes or bulk wine, from third-party sources. Planting and managing a vineyard is a very different exercise from a so-called negociant operation, and you will need to study this aspect carefully. Is your land within an established AVA (American Viticultural Area)? Or is the available property not at all close to existing vineyards and, if so, have you determined if the conditions are suitable for grape growing? I would say that the fundamentals need to be examined thoroughly, and once you have decided on a viable model, other operational aspects will follow accordingly, such as the buildings and equipment that will be required to execute your plan. I am inferring you want to create your own brand, which of course leads to basic questions about sales and marketing. A tasting room can be a significant outlet for a winery, particularly smaller ones, but it is only one part of the entire business model. I wish you success in realizing your dream, whatever the final form.
"Federal law requires that anyone wishing to conduct wine operations (other than as a home winemaker) must first establish premises, obtain a bond and receive permission from the Alcohol and Tobacco Tax and Trade Bureau (TTB). In addition, law requires that anyone wishing to produce or blend wine in the United States must first obtain a Federal Basic Permit from TTB."
