Definition and Production Levels
A small winery typically produces fewer than 10,000 cases annually. Such wineries are also referred to as “micro-wineries” or “boutique wineries” and are known for their hand-crafted, artisanal approach to winemaking. Small wineries are believed to craft higher quality wines due to their limited production focus. In most cases, micro-wineries may grow their own grapes and use traditional techniques to produce unique wines. Small production wines have limited quantities and are often embraced for their sustainability and ethical practices, including organic, biodynamic, and natural wines.
Starting and Running a Small Winery
Financial Aspects
Small winemakers sell an estimated $1.3 billion in wine, with a substantial 86 percent sold in the domestic market. Given these figures, it’s worth considering how to start a winery:
- Come up with a name and choose a business entity.
- Write a business plan.
- Navigate licensing, permits, and taxes.
- Create a budget.
- Get funding for your wine business.
Despite higher investment and operating costs, many vineyard owners open an onsite winery due to the higher profits it can bring.
Industry Size Standards
By industry definitions, small wineries produce at least 5,000 cases a year and up to 50,000 cases. Very small wineries constitute 40 percent of U.S. wineries, producing between 1,000 cases a year and 4,999. Limited-production wineries are at the smaller end of the scale, producing fewer than 1,000 cases annually.
Furthermore, the typical size for a vineyard considered small is under 10 acres. A significant portion of US wineries fall under this category, producing under 1,000 cases annually and often being multifunctional within the company.
Characteristics and Investments
Small wineries offer a unique experience different from visiting industrial wineries. This is attributed to the level of attention they give to each batch, barrel, and bottle. Smaller wineries generally source the highest quality grapes, leading to exceptional wines due to the winemaker’s higher involvement in the winemaking process.
When discussing barrel sizes, the most common is the Bordeaux barrel, with a capacity of 225 liters or around 25 cases of wine.
Is a vineyard a good investment? Although ‘vineyard’ and ‘winery’ are sometimes used interchangeably, vineyards are where grapes are grown while wineries are where wine is produced from these grapes.
Small production wine, as defined by Wines Vines Analytics, signifies any wine created by a producer that makes less than 49,999 cases per year. These producers often do not own vineyards but buy grapes from trusted winegrowers.