Fielding a Cooperative and Winery Richard Fuller SO MD Wine Growers Cooperative President Winery Manager

THE COOPERATIVE HOW WE STARTED o Tobacco Buy-out o Local Grape Growers o Amateur Wine makers HOW WE DID IT o COMMITTEES o GRANTS o USDA/MD/TRI-COUNTY

THE COOPERATIVE WHY o Local Market o Eventual Profit Share WHO o Members o Committee

THE COOPERATIVE RESULTS o 16 MEMBERS o FORMED A CORPERATION o APPLIED FOR GRANTS o WORKED WITH STATE, COUNTY, TOWN o GREAT EFFORT AND COOPERATION

THE COOPERATIVE RESULTS o REFURBISHED OLD STATE HIGHWAY GARAGE o LANDSCAPE AND PARKING IN A NEW PARK o 10,000 GALLON WINERY WITH FULL EQUIPMENT

Everything Else Members o Start – 16 o Now – 18 but we lost some along the way Vineyards – 14, some are partners Grape Varieties – over 20 o Mixed blessing for the winemaker o Lots of blends

Everything Else Production o Planned – 5000 gallons then step to 10,000 o Current – 7100 (reduced by hurricane) Income o Planned start $250K o Actual $100K (lots of volunteer hours) o 2010 o 2011 o Today

Everything Else Operations o We have 5500 gallons to bottle o bottles from 2009/2010 to sell o 2011 red wine in barrel for next year o Low debt o Lots of friends

THE WINERY INVOLVEMENT COMMITEMENT

THE WINERY GREAT GRAPES EDUCATION RESPONSIBILITY

GETTING STARTED BUSINESS PLAN o Understand your area LOCAL SUPPORT DISTRIBUTION DIRECT SHIPPING TASTING ROOM

GETTING STARTED BUSINESS PLAN o Define the wines that you will produce Dry wines win awards Sweet wines pay the bills o Involve marketing o Generally define your logo and labels o One label or two?

GETTING STARTED BUSINESS PLAN o Know your people – do you have: Winemaker Marketing genius Grape growers Web site and twitter/facebook skills o If not, hire experts and/or consultants o Use your members, make teams, keep them involved!!!!!

GETTING STARTED BUSINESS PLAN o Revise or update as information changes o Non-profit or for profit, one company or two?

GETTING STARTED Financial Plan o Fully fund your plan! One of our most important lessons o Be very detailed o Build a budget for the first 2 years of operations

GETTING STARTED Marketing Plan o Hire a Professional, but work with them o Understand your market o Plan Tasting Room staffing o Plan off-site event staffing o Will you support bus tours at the tasting Room?

GETTING STARTED Feasibility Study Do one, even if not required by your lenders Build your “cost of goods produced” information early and revise often

GETTING STARTED Membership and Incorporation o Membership Requirements o Incorporation Planning

IMPLEMENTATION Early planning Consultant Winery Tasting room

IMPLEMENTATION Early planning Kitchen Barrel Room Case storage Grower coordination o Price o Quality o Education

IMPLEMENTATION Marketing Hire a marketing/sales manager Labels should be done professionally Websites should be built professionally Volunteers can do twitter and facebook

PRE-PRODUCTION Operations o Staff o Transactions o Inventory o Tax Reporting o Festivals

PRE-PRODUCTION Marketing o Pricing o Newsletters o Social media o Websites o Paid advertising

PRE-PRODUCTION Winemaking Grower Training

START UP Plan Plan Plan Marketing Operations Wine Making

UP AND RUNNING OPERATIONS o Staffing o Volunteers o Reports o Supplies

UP AND RUNNING MARKETING o Retail tasting room o Events Festivals Off site Non-profit o Wholesale

UP AND RUNNING Winemaking o Communication o Equipment replacement/repair o Supplies o Labor o Expect the Unexpected o Keep GREAT records