Winery Business Plan Template

Written by Dave Lavinsky
winery business plan template
Table of Contents
Table of Contents

Winery Business Plan

If you want to start a winery or expand your current winery, you need a business plan.

The following business plan template gives you the key elements to include in a winning business plan for your winery.

You can download our winery business plan template (including a full, customizable financial model) to your computer here.

 

Sample Winery Business Plan

Below is a winery business plan example with each of the key sections to help you write a winery business plan for your own company.

I. Executive Summary

Business Overview

In [Year], [Founder’s Name] established [Company Name] with the vision to be a leading winery in the [Location] area. He spent years developing his land with the help of his three sons and daughter. Currently, it grows and bottles red, white, rosé and sparkling wines.

Known for its traditional way of crafting wine, [Company name] ensures that there is very minimal intervention in the winemaking process to ensure the authentic flavor of its products. Aiming to reach the larger national market, [Company name] continues to grow in areas such as marketing, distribution, brand development, research and development and premium bulk wine contracts.

Products Served

[Company Name] grows and bottles the following kinds of wine:

  • Red Wine
  • White Wine
  • Rosé Wine
  • Sparkling Wine

Customer Focus

[Company Name] will primarily serve the residents who live within a 20-mile radius of our winery and workers within a quarter mile radius. The demographics of these customers are as follows:

  • 65,800 residents
  • 2,000 workers (who do not live the neighborhood)
  • Average income of $84,600
  • 48% married
  • 51% in Management/Professional occupations
  • Median age: 35 years

We will also target restaurants, hotels and grocery stores to set up wholesale accounts.

Management Team

[Company Name] is led by [Founder’s name] who has been in the wine-making business for [x] years. In his long experience in the industry, he acquired an in-depth knowledge of the ins and outs of starting a winery business before he started [Company name].

[Founder] graduated from the University of ABC where he majored in Business and received a certificate in agriculture.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

  • There is currently no winery in the community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to purchase our wines when launched.
  • Our wines will be produce with the utmost integrity with no artificial processes or additives, making for a superior product
  • The management team has a track record of success in the winery business.
  • The winery business has proven to be a successful business in the United States.

Financial Highlights

[Company Name] is seeking a total funding of $520,000 to launch its winery. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.

Specifically, these funds will be used as follows:

  • Store design/build: $250,000
  • Working capital: $120,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Year 1Year 2Year 3Year 4Year 5
Revenue$1,080,000 $2,472,768 $2,830,825 $3,240,728 $3,709,986
Total Expenses$962,000 $1,539,107 $1,719,742 $1,901,321 $2,112,641
EBITDA$118,000 $933,661 $1,111,082 $1,339,407 $1,597,344
Depreciation$25,600 $25,600 $25,600 $25,600 $25,600
EBIT$92,400 $908,061 $1,085,482 $1,313,807 $1,571,744
Interest$29,946 $26,202 $22,459 $18,716 $14,973
Pre Tax Income$62,455 $881,858 $1,063,023 $1,295,091 $1,556,772
Income Tax Expense$21,859 $308,650 $372,058 $453,282 $544,870
Net Income$40,595 $573,208 $690,965 $841,809 $1,011,902

 

II. Company Overview

Who is [Company Name]?

[Company Name] is a family-owned winery that is devoted to growing, producing and selling the finest quality wines within [Location]. Currently, it grows and bottles red, white, rosé and sparkling wines.

Known for its traditional way of crafting wine, [Company name] ensures that there is very minimal intervention in the winemaking process to ensure the authentic flavor of its products. This is made possible with the use of advanced technology and the hard work of the [Company name] family.

With the goal of reaching the larger national market, [Company name] continues to focus on marketing, distribution, brand development, research and development and premium bulk wine contracts.

[Company Name]’s History

In [Year], [Founder’s Name] acquired land and decided to plant a vineyard with the vision to be a leading wine supplier in the [Location] area. He spent years developing his land and to produce the best harvest of grapes to turn into wine. With the help of his three sons and daughter, they were able to perfect the [Company Name]’s wine selections.

Since incorporation, the company has achieved the following milestones:

  • Developed the company’s name, logo and website located at [website]
  • Acquired land and planted grapes
  • Determined building, equipment and fixture requirements
  • Began recruiting key employees

[Company Name]’s Products/Services

[Company Name] will be able to provide its customers with the following kinds of wine:

  • Red Wine
  • White Wine
  • Rosé Wine
  • Sparkling Wine

[Company Name] also allows its customers to visit the winery for a unique wine tasting and wine making experience.

 

III. Industry Analysis

The Winery industry has experienced fairly consistent growth over the past years. As the United States has become an increasingly prominent producer and exporter of quality wines, the industry has established itself as a key player in the global wine market. Additionally, consumer preferences have shifted during the period, with many consumers spending more on high-end alcoholic beverages, boosting demand for the industry’s high-priced products.

Over the next five years, the industry is anticipated to benefit from projected increases in consumer confidence and per capita expenditure on alcohol. Thus, while regulation for the alcohol beverage sector is expected to increase, increased consumer spending is anticipated to outweigh detrimental regulatory shifts. Still, operators will continue to experience pressure on profit margins as growing conditions deteriorate due to the effects of climate change.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will primarily serve restaurants, grocery stores and hotels, as well as households in the [Location] area and the immediate surrounding areas. The area residents we serve are affluent and show an increased demand for home-grown wines.

Customer Segmentation

We will primarily target the following three customer segments:

  • Local residents: Approximately 65,000 residents live in the area, 80% of which are over the age of 21.
  • Wholesale accounts: We will target restaurants, hotels and grocery stores to set up wholesale accounts. These establishments will then sell our wines downstream to end consumers.
  • Businesses: We will target local corporations for company outings

 

V. Competitive Analysis

Direct & Indirect Competitors

Sunset Winery
Sunset Winery is a small family-owned winery offering a variety of small-batch wines created from the fruit of West Michigan farmers. Because of its limited production operation, it limits customers to a maximum of 12 bottles of a given variety per household per visit. Sunset Winery also operates a tasting room on location. It serves wine, beer and cider.

Sunset Winery wines include: Fruit Wines, Dessert Wine, Hard Cider, Specialty Wines, White Wines and Red Wines

The Winery
Founded in 2003, The Winery is a family-owned and operated Winery, Blueberry Farm and Christmas Tree Farm. The Winery is open seasonally Memorial Day through Labor Day. All Young Farms wines are produced, cellared, and bottled on-site.

The Winery operates a tasting room, which hosts live music on Thursday evenings, and food trucks on Friday evenings. The Winery wines include reds, whites, fruit and cider.

Vina Vineyards
Established in 2012, Vina Vineyards is a family-owned boutique winery that produces a variety of black currant, red currant and gooseberry wines made from berries grown on its own farm. All Vina Vineyards wines are produced and bottled on site.

Vina Vineyards also operates a tasting room, which is available to rent as a venue for parties or events.

Competitive Pricing

The cost of wine is highly variable depending on the variety, vintage and other factors.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

  • Client-oriented service: [Company Name] will have a full-time sales manager to keep in contact with our wholesale customers
  • Management: [Founder’s Name] has been extremely successful working in the wine-making business and will be able to use his previous experience to assure clients of the care that [Company Name] will take to create the best tasting wines. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name’s] competitors.
  • Transparency: To continue to assure customers of the quality of [Company Name]’s products, customers are allowed to visit the [Company Name] at a moment’s notice, and enjoy a wine tasting and winery experience.

 

VI. Marketing Plan

You can download our winery business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

  • Offers the finest wines at a competitive price
  • Has a convenient location that offers a place to experience wine-making
  • Provides excellent customer service

Promotions Strategy

[Company Name] expects its target market to be residents and individuals working within [Location] area. The Company’s promotions strategy to reach these individuals includes:

Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other promotions for people to experience our wine offerings.

Public Relations
We will contact all local and area newspapers and television stations and send them a press release describing the opening and unique value proposition of [Company Name].

Advertising
[Company Name] will initially advertise in local newspapers and sponsor community events in order to gain awareness.

Sampling
[Company Name] employees will initially give free wine samples to enable customers to taste the quality of our wines and learn about us.

Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products, and more.

Pre-Opening Events
Before opening the winery, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.

 

VII. Operations Plan

Functional Roles

In order to execute on [Company Name]’s business model, the Company needs to perform many functions including the following:

Service Functions

  • Grape harvesting
  • Grapes pressing and wine making
  • Deliveries and operations
  • Sales and Marketing

Administrative Functions

  • General & administrative functions including legal, marketing, bookkeeping, etc.
  • Hiring and training staff

Milestones

[Company name]’s long term goal is to become the dominant provider of quality wines in the [Location] area. We seek to be the standard by which other providers are judged.

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

DateMilestone
[Date 1]Finalize lease agreement
[Date 2]Design and build out [Company Name]
[Date 3]Hire and train initial staff
[Date 4]Kickoff of promotional campaign
[Date 5]Launch [Company Name]
[Date 6]Reach break-even

 

VIII. Management Team

Management Team Members

[Company Name] is led by [Founder’s name] who has been in the wine-making business for [x] years. In his long experience in the industry, he acquired an in-depth knowledge of the ins and outs of starting a winery business before he started [Company name].

[Founder] graduated from the University of ABC where he majored in Business and received a certificate in agriculture.

Hiring Plan

[Founder] will serve as [Company name]’s manager. In order to launch the winery, we need to hire the following personnel:

  • Grapes harvesters (4)
  • Winery manager (1)
  • Delivery personnel
  • Administrative assistant (1)

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come from the sale of wines to its customers.

The major costs for the company are packaging costs, salaries and supplies. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

[Company Name] is seeking a total funding of $520,000 to launch its winery. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.

Specifically, these funds will be used as follows:

  • Store design/build: $250,000
  • Working capital: $120,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

Number of customers per dayNumber of wholesale contracts per year
FY 145FY 15
FY 255FY 210
FY 365FY 315
FY 475FY 420
FY 585FY 525
Average order price$28.00Average order$250
Annual Lease (per location)$60,000

5 Year Annual Income Statement

Year 1Year 2Year 3Year 4Year 5
Revenues
Product/Service A$151,200 $333,396 $367,569 $405,245 $446,783
Product/Service B$100,800 $222,264 $245,046 $270,163 $297,855
Total Revenues$252,000 $555,660 $612,615 $675,408 $744,638
Expenses & Costs
Cost of goods sold$57,960 $122,245 $122,523 $128,328 $134,035
Lease$60,000 $61,500 $63,038 $64,613 $66,229
Marketing$20,000 $25,000 $25,000 $25,000 $25,000
Salaries$133,890 $204,030 $224,943 $236,190 $248,000
Other Expenses$3,500 $4,000 $4,500 $5,000 $5,500
Total Expenses & Costs$271,850 $412,775 $435,504 $454,131 $473,263
EBITDA($19,850)$142,885 $177,112 $221,277 $271,374
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
EBIT($56,810)$105,925 $140,152 $184,317 $234,414
Interest$23,621 $20,668 $17,716 $14,763 $11,810
PRE-TAX INCOME($80,431)$85,257 $122,436 $169,554 $222,604
Net Operating Loss($80,431)($80,431)$0$0$0
Income Tax Expense$0$1,689 $42,853 $59,344 $77,911
NET INCOME($80,431)$83,568 $79,583 $110,210 $144,693
Net Profit Margin (%)-15.00%13.00%16.30%19.40%

5 Year Annual Balance Sheet

Year 1Year 2Year 3Year 4Year 5
ASSETS
Cash$16,710 $90,188 $158,957 $258,570 $392,389
Accounts receivable$0$0$0$0$0
Inventory$21,000 $23,153 $25,526 $28,142 $31,027
Total Current Assets$37,710 $113,340 $184,482 $286,712 $423,416
Fixed assets$246,450 $246,450 $246,450 $246,450 $246,450
Depreciation$36,960 $73,920 $110,880 $147,840 $184,800
Net fixed assets$209,490 $172,530 $135,570 $98,610 $61,650
TOTAL ASSETS$247,200 $285,870 $320,052 $385,322 $485,066
LIABILITIES & EQUITY
Debt$317,971 $272,546 $227,122 $181,698 $136,273
Accounts payable$9,660 $10,187 $10,210 $10,694 $11,170
Total Liabilities$327,631 $282,733 $237,332 $192,391 $147,443
Share Capital$0$0$0$0$0
Retained earnings($80,431)$3,137 $82,720 $192,930 $337,623
Total Equity($80,431)$3,137 $82,720 $192,930 $337,623
TOTAL LIABILITIES & EQUITY$247,200 $285,870 $320,052 $385,322 $485,066

5 Year Annual Cash Flow Statement

Year 1Year 2Year 3Year 4Year 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)($80,431)$83,568 $79,583 $110,210 $144,693
Change in working capital($11,340)($1,625)($2,350)($2,133)($2,409)
Depreciation$36,960 $36,960 $36,960 $36,960 $36,960
Net Cash Flow from Operations($54,811)$118,902 $114,193 $145,037 $179,244
CASH FLOW FROM INVESTMENTS
Investment($246,450)$0$0$0$0
Net Cash Flow from Investments($246,450)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$317,971 ($45,424)($45,424)($45,424)($45,424)
Net Cash Flow from Financing$317,971 ($45,424)($45,424)($45,424)($45,424)
SUMMARY
Net Cash Flow$16,710 $73,478 $68,769 $99,613 $133,819
Cash at Beginning of Period$0$16,710 $90,188 $158,957 $258,570
Cash at End of Period$16,710 $90,188 $158,957 $258,570 $392,389

 

Download our Winery Business Plan Template

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