Fielding a Cooperative and Winery Richard Fuller SO

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

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

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

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

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

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

Everything Else • Operations o o o 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

THE WINERY • INVOLVEMENT • COMMITEMENT

THE WINERY • GREAT GRAPES • EDUCATION • RESPONSIBILITY

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

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

GETTING 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 consultants o Use your members, make teams, keep them involved!!!!!

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

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

GETTING STARTED • Marketing Plan o o o 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?

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

GETTING STARTED • Membership and Incorporation o Membership Requirements o Incorporation Planning

IMPLEMENTATION • Early planning • Consultant • Winery • Tasting room

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

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

PRE-PRODUCTION • Operations o o o Staff Transactions Inventory Tax Reporting Festivals

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

PRE-PRODUCTION • Winemaking • Grower Training

START UP • • Plan Marketing Operations Wine Making

UP AND RUNNING • OPERATIONS o o Staffing Volunteers Reports Supplies

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

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