The mortgage must be paid by each bottle sold
The incredible advantage that custom crush wine brands have over “big ego” winery owners is apparent each time the bill is presented at the restaurant, club, or fine wine shop
In recent years, the wine industry has seen a rise in wineries with extravagant homes, castles, or wineries on their property. While this may seem like a symbol of success and luxury, it can actually put these wineries at a distinct disadvantage when compared to brands that use rented winery space as needed. This is referred to as “custom crush” in the business and we have several of our producers who use this model.
Firstly, the cost of owning and maintaining a luxurious winery can be astronomical. Expensive homes, castles, and wineries require a significant investment in construction and upkeep, leaving winery owners with high operating costs that must be factored into the price of their wines. This can make it difficult for them to compete with brands that operate out of rented winery space, which often has lower overhead costs.
Moreover, owning a winery with a grand estate can also limit the flexibility of the winemaker. When a winery has its own estate, it can be tempting to focus solely on producing wine using grapes grown on that property. This can be limiting for the winemaker and may result in a lack of variety in the wines produced. On the other hand, wineries that rent space have the freedom to source grapes from various regions, giving them a wider range of flavors and styles to work with.
Additionally, wineries with extravagant homes or castles may face challenges in attracting a broader customer base. These wineries often appeal to a niche market of wine enthusiasts with a taste for luxury, but may not attract the average consumer looking for a good bottle of wine at a reasonable price. This can make it difficult for these wineries to expand their customer base and grow their brand.
In contrast, wineries that operate out of rented space have more flexibility to cater to a wider range of customers. They can focus on producing high-quality wines at affordable prices, which can attract a broader audience. They can also experiment with different grape varieties and winemaking techniques without the constraints of owning their own estate.
In conclusion, while wineries with expensive homes, castles, or wineries may seem like a symbol of success and luxury, they may actually put wineries at a disadvantage. The high operating costs, limited flexibility, and niche appeal of these properties can make it difficult for wineries to compete with brands that use rented winery space. Therefore, it may be advantageous for wineries to consider the benefits of operating out of rented space in order to stay competitive in the ever-evolving wine industry.
