Files
Abstract
The number of operating wineries in the United States has doubled during the
past decade. Most of this growth has been due to a large number of entrepreneurial
landowners developing their own small acreage vineyards and trying to
branch into winemaking. However, wineries are capital-intensive enterprises
which require high initial investment and experience lagged cash flow associated
with the time between the purchase of grapes and initial wine sales. Additionally,
the availability of local grape production often limits the production
capabilities of an entrepreneur’s small winery. As a result, some vineyard owners
consider establishing co-operative wineries. This paper describes a feasibility
assessment tool developed to assist vineyard owners in examining the potential
for a co-operative winery and provides an example of how this tool can be used
to examine a number of co-operative operating scenarios.