What does it cost to run a winery after you buy it?
After closing, a winery’s costs come from fruit or vineyard work, harvest crews, barrels and cellar supplies, bottling and packaging, wine carried while it ages, equipment upkeep and tasting-room staff. Ask the seller to show each category in the statements, season by season, so you can see the pattern.
The purchase price is only the start of owning a winery. Once you take over, the bills arrive in a seasonal rhythm that differs from most shops. Some months are heavy with work in the vineyard, and others with bottling or events. Ask the seller to walk you through a full year of costs, grouped under the headings below.
Fruit, vineyard and harvest
If the winery grows its own grapes, ask what vineyard labour, equipment and upkeep cost across the year, and how the harvest crew is arranged. If it buys fruit, ask about the grower contracts and what happens in a poor season. Costs here can swing from one year to the next, so ask to see more than one.
Cellar, bottling and packaging
Barrels, cellar supplies, bottles, closures, labels and boxes are recurring costs, and some are bought in bulk before they are needed. Ask whether bottling is done on site or by an outside service, and whether any equipment is leased. This page on checking worn equipment lists questions worth asking.
Carrying wine while it ages
Wine in barrel or bottle is money already spent that has not yet been sold. Ask how much stock is held, for how long, and how it is counted. Then ask what you would need to keep funded until it sells. Your lender and accountant can help you plan for the gap.
People and upkeep
Tasting-room staff, seasonal help and a cellar team are a large part of the running picture. Add equipment servicing, buildings and insurance, then ask your advisers what else applies to your own situation.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideHow do I buy a winery in Ontario?
- GuideBuying a winery in Canada
- Expert answerHow is buying a winery different from buying a restaurant?
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Selling
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat is inventory
- 03Business Development Bank of CanadaGovernment4 key steps to plan your cash flow in the coming year
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