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CO VER S T OR Y Selling Fruit Versus Selling Wine Grower options Selling grapes Dollar return per ton $1,000 Selling wine that sells at $10 per gallon $1,000 Selling wine that sells at $15 per gallon $1,800 Selling wine that sells at $20 per gallon $2,600 Sample figures by Mike Draxton and Ciatti & Co., using 170 gallons per ton, $600 per ton production cost, 2% broker commission and eight months storage at 8 cents per gallon per month. "There was risk," he says, "but many growers were willing to take that gamble." Vinters_GrapePress_Jun09.qxp 5/8/09 11:47 AM Page 1 BUY YOUR NEXT GRAPE PRESS MEMBRANE FROM A COMPANY THAT KNOWS PRESSES! Custom wineries like Bin to Bottle can offer a variety of wine-process- ing services, including sorting techniques popular with high-end wines. He says that making wine extended the sales cycle by many months and opened up the wider market of smaller wineries. "Now they could sell in lots from 100 gallons to 5,000 gallons. The growers could hold off for a better deal. They weren't desperate anymore." Working with Ciatti Co., a leading wine and grape brokerage in San Rafael, Calif., to determine the typical prices, Draxton created a financial model that worked. As an example he quoted Alexander Valley Cabernet Sauvignon. "We looked at the minimum we would get for bulk wines. It was $10 to $11 per gallon." How did that compare to getting $1,000 per ton for Alexander Valley grapes? It turned out that $10 per gallon yielded the grower the same return as $1,000 per ton, based on 170 gallons per ton and after subtracting a $600 per ton production cost, 2% broker com- mission and eight months storage fee at 8 cents per gallon per month. So $15 per gallon equaled $1,800 per ton and $20 per gallon equaled $2,600 per ton. Owned and operated by third generation grape growers, S & L Vineyards supplies bulk grapes, juices and wines to large and small wineries. Vintners Supply Company has been supplying replacement wine press membranes since 1996. Our membranes are manufactured in Germany by technicians with years of experience in manufacturing and servicing grape presses.We stock replacement membranes for most any make and model of grape press. Please contact us for a no obligation quote. If we do not have it, we can make it! Grown in Lodi/Woodbridge and the Sierra Foothills where the climate is warm and dry in the summers and cool and moist in the winters, our premium wine grapes are harvested at optimum brix levels, custom processed based on customer preference and placed in cold storage. Hand selected grapes are packed in half- ton cardboard containers and shipped in refrigerated trailers directly to your facility via your preferred method and carrier. Toll Free: 800-366-6809 • Fax: 707-584-7955 E-mail: membranes@vintnerssupply.com www.vintnerssupply.com St. Helena, CA 94574-0153 P.O. Box 153 S & L Vineyards can be reached at 866.214.7273 or sales@slvineyards.com 26 Wines & Vines JUne 2012