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May 2017 WINES&VINES 59 PRACTICAL WINERY & VINEYARD BUSINESS meet the needs of your winery today, tomorrow and well into the future. What are my options? Build/buy: Building or buying a bottling solu- tion for your winery is what many winemakers aim to work toward over time. First and fore- most, if your winery is successful and growing, then owning bottling equipment will require an upfront investment that needs to pay off in a reasonable amount of time. This option also ensures quality control, as you can oversee the bottling process. There is a large investment required in purchasing bottling equipment, not only in the equipment itself but also sourcing and retain- ing quality personnel. Some of the consider- ations include: • Do your current and projected bottling needs justify the cost of installing bottling equipment in-house? • How soon can you recoup your initial investment? • How does the cost of ownership compare to what you are currently paying for outside bottling services? • Can you create additional revenue by bot- tling for other wineries? By asking yourself these questions, you can get to the heart of whether buying a bottling line makes financial sense for your winery. If you answer these questions and still decide that buying is the right option for your winery, then it's time for you to do some research. Points to consider: • Will you require financing? If so, what type of financing is available? • Will a down payment be required and, if so, how much? • Will the debt service associated with the financing be acceptable to your current and projected cash flows? • If the unit must be built, will your lender provide progress payments? Will those payments be interest-only or principal- plus-interest payments during the con- struction period? There is much more to owning and operat- ing a bottling line than simply paying for it. You will also want to determine if you have the skills and staff time required to operate a bottling line. Production considerations: Do you have bottling experience? If not, can you recruit and retain competent personnel with sufficient experience? Does the current winery location allow for an efficient production facility? There are several factors that make a loca- tion less than ideal for bottling. For example, a loud bottling line next to your tasting room might detract from customer traffic. Likewise, exposure to rain or heat can prove detrimental to wine quality and make employees uncom- fortable. Finally, you will want to purchase product-liability insurance if you choose to bottle for other wineries. After carefully considering the above ques- tions, the challenge of selecting bottling equipment begins. Deciding what type of bottling equipment is right for your winery could justify an entire article on its own. Your product offerings, production volume, bot- tling schedule and geographic location all drive the decision whether or not to buy your own bottling equipment. Case studies: owning your bottling equipment Susie Selby is the winemaker and proprietor " By choosing the appropriate (mobile bottling) truck, I can maximize the utilization of equipment and labor." —Susie Selby, Selby Winery Superior protecƟon against oxidaƟon New XtraPure® from XtraChêne is a winemaker's best ally to protect must and wine from destrucƟve oxidaƟon. Sourced from a French forest selected for its anƟ-oxidant capacity, XtraPure® is the result of extensive study, scienƟfic analysis and winemaking trials. Our unique recipe of seasoning and heat treatment maximizes the effecƟveness of XtraPure®. 707.843.4407 • sales@xtraoak.com • www.xtrachene.fr Enemy. Ally. ¨