So Do You Really Want To Buy A Vineyard?
There are many reasons why people want to buy a vineyard. There are the amateur wine makers who wish to branch out from producing wine as a hobby at home, there are people who want to make money from it, there are people who already have a vineyard but wish to expand and there are people who want to buy a vineyard simply because they like wine. There are 2 main questions you should ask yourself before you even think of considering the challenge further and devote time to research. The first question you should ask yourself is ‘Do you have any experience at producing wine?’ and the second is ‘How much money can I afford to invest into a project?’
Let’s look at the first consideration. You may be the person who has produced wine at home from wine kits and feel that you would like to get into the business. Well there is a huge leap to make to producing it yourself. The location of your winery is of prime importance ensuring that the climate is suited to the type of grapes you are thinking of growing. Secondly the soil has to be taken into consideration as different soil types can vastly affect harvests. If you do not have any scientific background you are immediately going to need to hire experts in this particular field. The second consideration is the money. Vineyard land can cost anywhere between £35,000 to £150,000 per acre before the grapes are even planted. You can assume an average cost of £20,000 per acre to plant the vines and then a maintenance cost of around £10,000 to take you up to your first harvest after three years at which time you will be producing approximately 2 tons of grapes per acre. After five years this should rise to 5 tons at which time you may even make a profit. Up to now, however, your total expense on just one acre has been well over £100,000!
Ok, so you have now got your grapes and it is time to go through the fermentation process. Wine is generally fermented in oak barrels and can take anywhere between 1 and 4 years depending on whether you are producing a fresh white wine or a robust red. The oak barrels are the best form of storage for this process but are quite expensive to buy ranging from £100 for second hand to £500 for new. Once the fermentation process is complete you can begin the bottling of your wine which will cost between £3-£10 per case for the incidentals such as bottles, corks and labels.
Selling your wine is generally done through traditional methods such as holding tasting sessions where customers then pay the retail price for the wines of their choice, or by direct sale to a list of customers on mail order. The best method of selling your wine quickly and in bulk is through a distribution outlet who will market your wine to a number of retail outlets. Be warned, however, that this is by far the most expensive method with distributors taking an average of 40% discount on the retail price. So if you are going to buy a vineyard make sure you have a very friendly bank manager to help you through the first 5 years!
Buy A Vineyard – The Virtual Kind
At the other end of the spectrum, if you still have the urge to buy a vineyard you could take the route of the Virtual Vineyard. Without investing thousands in a winery itself, all you need is a phone , internet connection and some good marketing skills. You develop a range of contacts from whom you would buy the grapes, usually frozen, dispatch them to a production plant where they are crushed, bottled, labelled and held in storage awaiting shipping. You would sell your wine usually through internet marketing. This way may not be as satisfying as the real thing but can generally produce a reasonable income without the risks.
Buy A Vineyard With A Guaranteed Profit
Los Pandos has the perfect solution for all you budding wine enthusiasts. Forget the huge and risky expense of the real thing, and the hard work of the Virtual Vineyard. At Los Pandos where their latest investment opportunities are now available, you can own a share in their 200 hectare vineyard with an outlay of just £5000. All investments are asset backed and offer returns of up to 39% return on investment over a 3 year period. As an investor you will be entitled to sudsidised trips to the Los Pandos complex where you can see the operation in full flow, discuss your requirements and perhaps enjoy a glass or two of wine….get full details at Buy A Vineyard – Without The Hassle.