So You Want to Own a Vineyard

Taste of Italian Wines

 

By Frank Mangio

 

Over the years I have talked to a ton of owner/operators of vineyards and wineries about their decision to get into the wine business as growers and bottlers. A good number came from families that had been doing this for generations and in far away European countries. More than a few have come from careers that have been as far from farming as you can get, especially the technology and engineering industries.

 

Most of the reaction I got from that subject is “I wanted to do something I love.” Then, when the day to day operations are brought up, I found that it is a consuming and expensive love.

 

Recently the Wall Street Journal found a couple who were willing to lay it out for readers. They have a 38 acre tract near Santa Barbara that they bought in 2004 for 1.5 million, including a tiny “fixer upper” house. When they planted their vines, they soon found out that capital improvements on things like a well for irrigation sopped up many more hundreds of thousands of dollars. By their account, maintaining the vineyard takes upwards of $8,000 an acre annually. The typical yield of grapes is about 2 to 4 tons per acre, which they can sell for about $4,000 per ton to neighboring wineries. They plant mostly Pinot Noir which is in high demand, as long as the harvest is kind to them. Unfortunately, the '08 harvest was plagued by frost early on and almost wiped out their crop. They only harvested 3 ½ tons total. In this business, as small operators, they have to wait until somebody else comes along that wants to “do something I love,” and buys them out at a handsome profit. In the meantime, they don't drop their day jobs.

 

Frank Mangio is a renowned wine connoisseur certified by Wine Spectator.  He is one of the leading wine commentators on the web.  View his columns at www.tasteofwinetv.com.  Reach him at mangiompc@aol.com.