Vineyard Profitability in California
A small California vineyard can be profitable. Profitability depends on climate, grape variety, soil, sun, nearby vineyards and equipment. The average vineyard price is $150,000 per acre. Location matters. A 35-acre vineyard earning $2,500 per acre yearly sees $88,000 profit. The minimum size for a profitable vineyard is 5 acres. For wholesale, 10 profitable acres are needed. More acres improve economies of scale.
Financial Considerations
Many open wineries despite higher investments and costs since profits are higher. Managers average $94,000 annually. Markups average two to three times wholesale costs. One vine produces 4-6 bottles yearly. Yearly costs per vineyard acre are $5,000. Yields of $11,000 worth of grapes per acre are possible. Safely shipping wine matters.
Starting a Winery
Cabernets have the most global vineyards. Yields of 3-5 tons per acre are best. Planting costs range from $30,000 to $100,000 per acre. A minimum winery start-up today costs $600,000.