How do I check a winery’s barrel inventory and cellar equipment before buying?
Do your own count in the cellar. Match every barrel and tank to the cellar log: what it holds, which vintage, and how old the barrel is. Then inspect pumps, tanks and cleaning gear for condition. The sale agreement should list what is included, not describe it loosely.
Barrels are both equipment and stock. Walk the cellar with the seller’s records and check that each barrel or tank on the list is in the room and holds what the log says. Ask the barrel age, number of fills, cooperage and any that have been retired. Old barrels can still hold wine but may not suit every style. Ask the winemaker’s view on each lot.
Look at tanks, pumps, hoses, presses, temperature controls and cleaning tools. Look for dents, worn seals, rust and signs of past leaks. Ask for service records, and ask which items are owned, leased or financed. A lender may hold a claim on equipment, so your lawyer should check for liens before you rely on the list.
Ask how the cellar was kept, including cleaning routines and how contamination problems were handled. An independent cellar hand can walk through with you. Attach the final inventory to the agreement and recount just before closing, since stock moves right up to that day. Ask about spare parts, spare hoses and cleaning supplies, which are easy to leave out of a list and annoying to replace. Also ask whether any barrels belong to someone else and are only stored there. Photograph the cellar as you count.
Key takeaways
- Count the cellar yourself and match it to the log.
- Ask which equipment is owned, leased or financed.
- Recount just before closing and attach the list.
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat is inventory
- 02Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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