The business of winemaking

378 Pages·2015·20.71 MB·English

by  Lamy

The Business of Winemaking

The
Business
of
Winemaking
Jeffrey L.
Lamy
The Business of Winemaking
Text copyright © 2015 Jeffrey L. Lamy
Wine Appreciation Guild
an imprint of
Board and Bench Publishing
www.boardandbench.com
No part of this publication may be reproduced, distributed, or
transmitted in any form or by any means, including photocopying,
recording, or other electronic or mechanical methods,
without the prior written permission of the publisher.
Editor: Judith Chien
Book design: TIPS Technical Publishing, Inc.
Cover design: Tressa Pack
Library of Congress Cataloging-in-Publication Data
Lamy, Jeffrey L.
The business of winemaking / Jeffrey L. Lamy.
1 online resource.
Description based on print version record and CIP data
provided by publisher; resource not viewed.
ISBN 978-1-935879-64-0 (pdf)—ISBN 978-1-935879-
56-5 (epub)—ISBN 978-1-935879-65-7 (hardback)
1. Wine and wine making—Economic aspects. 2. Wineries—
Management. 3. Viticulture. 4. Wine industry. I. Title.
HD9370.5
338.4’76632—dc23
2015020827
Although all reasonable care has been taken in the preparation of this book,
neither the author nor the publisher can accept liability for any consequences
arising from the information contained herein or from use thereof.
Printed and bound in the U.S.A.
Contents
List of Figures vii
List of Tables xi
1. Are you ready for the challenge?. . . . . . . . . . . . . . . . . . . . . . . . . 1
2. A supportive marketplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
3. Importance of the grape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
4. The solar factor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
5. Managing the vineyard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
6. Vineyard financial analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
7. Alternative fruits and products. . . . . . . . . . . . . . . . . . . . . . . . . 117
8. Winemaking and pivotal role of the winemaker . . . . . . . . . . . . .121
9. Aptitudes for winemaking . . . . . . . . . . . . . . . . . . . . . . . . . . . .187
10. Does the wine sell itself? . . . . . . . . . . . . . . . . . . . . . . . . . . . . .193
11. Recordkeeping and accounting in a regulated industry . . . . . . . 225
12. Winery equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
13. Winery building. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
14. Winery revenues and expenses . . . . . . . . . . . . . . . . . . . . . . . 283
15. Considerations relating to value in an acquisition . . . . . . . . . . . 303
16. Minimum economic size. . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
17. Where do you get the money? . . . . . . . . . . . . . . . . . . . . . . . . 323
18. Management, and expertise of the owner. . . . . . . . . . . . . . . . . . 331
19. A case study: Grand Eagle Estate Winery management meeting. . 335
Appendixes
A. Economic setting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339
B. Wage rates and power costs . . . . . . . . . . . . . . . . . . . . . . . . . . 343
C. Procedures for titration of total acidity using a pH meter . . . . . . 345
In Memoriam: Jeffery L. Lamy 1938–2014 349
Index 351
v

List of Figures
Figure 1 Wine Consumption in America, 2000–2013 . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Figure 2 explosive growth of Winery Licensees National Total, 1995–2014 . . . . . . . . . . . . 7
Figure 3 Number of Wineries 1975, 1995, 2005, 2010 and 2012 . . . . . . . . . . . . . . . . . . . 9
Figure 4 California Winegrape Crush 2000 –2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Figure 5 Wine Cost and Price Trends, Consumer Price and Producer indices . . . . . . . . . . .16
Figure 6 Alternative Ways To Analyze Solar radiation . . . . . . . . . . . . . . . . . . . . . . . . . 27
Figure 7 Solar radiation Vectors on South-facing Slope at Noon, Available to Site and
impacting Site . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Figure 8 Available Direct Solar radiation Vectors impacting Site . . . . . . . . . . . . . . . . . . 29
Figure 9 Solar radiation Components Striking Bare ground, 16-hour day . . . . . . . . . . . . 30
Figure 10 radiation Striking Bare ground . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Figure 11 effect Of Slope inclination, Sum of Direct Solar radiation Vectors . . . . . . . . . . . 33
Figure 12 Annual Degree-Days, Forest grove, Aurora, and Medford, Oregon . . . . . . . . . . . 35
Figure 13 Oregon’s New Vineyard Plantings in 2005–2011 . . . . . . . . . . . . . . . . . . . . . . .37
Figure 14 Washington’s New Vineyard Plantings in 2006–2010 . . . . . . . . . . . . . . . . . . . 38
Figure 15 Vine Spacing and Headlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .44
Figure 16 Optimum Spray Track for 30-foot Headlands and 9-foot Aisles . . . . . . . . . . . . . 45
Figure 17 Sub-Block Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45
Figure 18 Marking Sub-Block Corners on a Constant elevation Plane . . . . . . . . . . . . . . . . 47
Figure 19 Planting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
Figure 20 Planting by Shovel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49
Figure 21 Typical Disposition of Solar radiation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Figure 22 Photosynthetically Active radiation (PAr) Compared with “Top of Atmosphere”
Beam radiation and Beam radiation at ground Level . . . . . . . . . . . . . . . . . . . 55
vii
viii THe BuSi NeSS OF Wi NeMAki Ng
Figure 23 Absorption of Solar radiation by Leaf Pigments . . . . . . . . . . . . . . . . . . . . . . . 56
Figure 24 Photosynthesis: A Simplified Schematic . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Figure 25 Vertical and east–West Vectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Figure 26 east–West and North–South Vectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
Figure 27 Oregon upright Double guyot Training System . . . . . . . . . . . . . . . . . . . . . . . 61
Figure 28 Burgundy Single guyot Training System . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
Figure 29 Oregon radiation and Heat Vectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Figure 30 Burgundy radiation and Heat Vectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65
Figure 31 Oregon and Burgundy Compared, Capture per Lineal Meter of row . . . . . . . . . .66
Figure 32 Oregon and Burgundy Compared, Capture per Square Meter of Vineyard Land . . 67
Figure 33 Oregon and Burgundy Compared, Capture per Vine . . . . . . . . . . . . . . . . . . . . 67
Figure 34 Oregon and Burgundy Compared, Capture per Pound of grapes Produced . . . . . 67
Figure 35 energy Capture per Pound of grapes, Burgundy Compared to Varying Yields for
Dundee Hills AVA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Figure 36 Alternative Trellis Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Figure 37 Vineyard Layout for Post Calculations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Figure 38 example Purchase Order using Annual Purchase Contracting . . . . . . . . . . . . . . 75
Figure 39 Typical Vineyard Activity Schematic, Willamette Valley, Oregon . . . . . . . . . . . . .76
Figure 40 Vineyard Spray Targets, NW Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Figure 41 Vineyard Spray Targets, Ohio river Valley . . . . . . . . . . . . . . . . . . . . . . . . . . . .80
Figure 42 Timing of Fungicide Sprays, Ohio river Valley, near Cincinnati . . . . . . . . . . . . . .81
Figure 43 Yield Progression, Several Winegrape Varieties . . . . . . . . . . . . . . . . . . . . . . . . 86
Figure 44 Yield Progression, Pinot Noir, VSP versus Burgundy Training . . . . . . . . . . . . . . . 87
Figure 45 20 Selected Viticultural Areas in 18 States . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Figure 46 grape Juice Constituents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Figure 47 Changes during grape ripening, Sugar and Acids . . . . . . . . . . . . . . . . . . . . . 127
Figure 48 Cross-section of grape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Figure 49 Density of Aqueous ethanol Solution, Oz/gal versus Percent ethanol by Weight . . 130
Figure 50 Stages in Yeast Fermentation of Sugar to Alcohol and Carbon Dioxide . . . . . . . 133
Figure 51 Sweet reserve Procedure, White riesling Wine . . . . . . . . . . . . . . . . . . . . . . . 149
Figure 52 Typical Barrel Aging Times for red Wines, Bordeaux and Burgundy Barrels . . . . 162
Figure 53 rough Filtration Aids, Comparison of effective Particle retention range . . . . . . 164
Figure 54 Free Sulfur Dioxide required To Provide 0 .8 ppm Molecular Sulfur Dioxide . . . . 167
Figure 55 Sulfur Dioxide Levels for Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Figure 56 Finishing Filtration Aids, Comparison of effective Particle retention range . . . . 172
Figure 57 Traditional Bottle Shapes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Figure 58 Some Popular Label Shapes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Figure 59 Anatomy of a Wine Label . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178
Figure 60 Bottling line with 9-spout Monobloc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Figure 61 Final Filtration Setup . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Figure 62 Product Flow Through Channels of Distribution . . . . . . . . . . . . . . . . . . . . . . 195
Figure 63 Changing Population Distribution By Age groups, 1970–2010 . . . . . . . . . . . . 209
Figure 64 enplaned Airline Passengers, All u .S . Airports, 1990–2014 . . . . . . . . . . . . . . . 211
Figure 65 estimated 2014 Table Wine Consumption, Top 25 Metro Areas,
ranked by Volume . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214
Figure 66 Oregon Winery Licensings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Figure 67 Winemaking records example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 228
Figure 68 Amos Destemmer-Crusher kiessel Pomace Pump underneath . . . . . . . . . . . . 235
Figure 69 Types of Pomace Pumps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
Figure 70 DeJonge Shaker Table & Conveyor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
Figure 71 Press Types . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237