As implausible as it may seem, Anchorage, Alaska now has its own winery. In fact, every state in the union hosts at least one winery, most with vineyards attached. In recent years, small vineyards and wineries have made inroads into the wine industry in similar ways that small produce farms have developed markets within the fresh foods industry. Instead of following the large-scale, “agribusiness” model promoted by many California operations, these boutique wineries have followed a pattern that more closely resembles that of the French. France has built its wine reputation on distinctive products developed over centuries by small regional wineries. These wineries are able to command a high price for their wines because of their reputations for quality and the low volume that they produce. Boutique wineries in the United States are focusing on quality and direct marketing in order to develop small farm businesses that are economically viable.

Like small farms of any type, the owners put in lots of hours, wear many hats, and learn as they go. But unlike most small farms, the initial investment is high and a return on that investment takes at least seven years to realize. The vineyard itself costs anywhere from $8,000 to $15,000 per acre to plant, trellis, and install an irrigation system. The winery needs a climate controlled building in addition to about $25,000 worth of wine-making equipment. Obviously this isn’t a venture for anyone without capital or the ability to raise it, but individuals from Oregon to New York are taking the plunge with enthusiasm and largely positive results.

The vineyard
Bill Madison, co-owner of Madison Vineyards and Winery which is just north of Santa Fe, New Mexico, planted his vineyard 17 years ago and he says what every good farmer knows, “You can’t spend enough time in the vineyard.” All winemakers agree that the quality of the wine is in direct correlation to the quality of the grape, and so attention to the vines is key to the winery’s reputation.

Bill and his wife, Elise, have trialed several varietals of grapes on their two acres to find the few that can deal with the high water table that comes with their riverbottom land. Grape varietals are very specific in terms of the microclimates they perform well in. Bill says that finding the right clone out of 34 varietals available, “is a fluke of the gods, as far as I can see.” It takes persistence, research and attention to how the vines perform in your vineyard.

Once established, wine grapes generally take three years to produce a harvestable crop, but in the meantime, there is still plenty of work to do. Every year, the vines must be intensively pruned and trained onto trellises in order to develop plants that grow the ideal wine grape. Market farmers are typically focused on harvesting the highest yield per acre, but in a vineyard the focus is on sugar content and intense flavors. These qualities are developed by keeping the yield down so that the fruit that is left receives all of the vine’s concentrated nutrients. Pruning vines to this end is a true art and a true science, mixing research with intuition. The Madisons constantly experiment with different pruning techniques,looking for the exact mix of undercropping and overcropping that will produce the perfect grape.

In addition to pruning, the vines must be kept relatively free of weeds throughout the growing season, and closely monitored for disease, water needs, and pest problems (mostly in the form of birds and mammals). At harvest time, the grapes must be tested daily for sugars and acidity and when they reach the perfect level they need to be picked within twenty-four hours. Small vineyards rarely need to hire full-time labor, but temporary crews are usually brought in to help out at crucial times: the fall harvest and late winter pruning.

After all of the initial capital, three years with no crop, and lots of time and attention to develop a vineyard, the income gained from just growing and selling wine grapes is hard to justify for growers under 20 acres. Prices for grapes vary from region to region and season to season. The Madisons, who also buy grapes, generally pay anywhere from $450 to $1,500 per ton. Prices in other areas can go as high as $3,000 for good quality grapes. About seven tons of grapes can be produced on an acre of land, but smaller yields (around three tons per acre), are usually better in quality and consequently claim higher prices. At best, growers are looking at about $10,000 per acre, which isn’t that great a return considering that many other small farm enterprises gross in the $20,000 per acre range without the capital investment and lag-time between planting and harvesting. Decent prices for grapes are also dependent on the vineyard’s proximity to wineries, on relationships with these wineries, on competition, and on the weather and vagrancies of the market.

The winery
Most people involved in the boutique vineyard and winery business agree that the way to make a profit off of wine grapes is to make wine, a classic case of value-added agriculture. While vineyards may only be able to make a few thousand dollars per acre on their grapes, wineries can take the same grapes and make $30,000 worth of wine from an acre’s crop. However, while a vineyard can be looked at as labor intensive, a winery is certainly capital intensive. A lot of equipment is involved in making wine; everything from presses to barrels to labeling and bottling machinery is necessary for a winery to be operational on even the smallest scale. And making decent wine itself is no small feat.

John Sutcliffe started Sutcliffe Vineyards five years ago in a sunny canyon west of Durango, Colorado. He currently has six acres in vines and is planning to plant four more in the spring. He started selling his wine in 1999 and has had good early success both in making wines and marketing them. He believes that “you’d be crazy to start a winery without knowing or having a big interest in wines,” because of all the intricacies involved in the winemaking process. Just as growing wine grapes necessitates a mix of science and intuition, winemaking demands a combination of compulsiveness and creativity. John keeps meticulous notes on everything he does in the winery and also relies on the palates of friends and experts alike in deciding what is best for the wine.

John also emphasizes the importance of quality in the operation. “The moment you decide to do a boutique winery, you bind yourself to the best, best components.” This applies to everything from vines to grapes to the equipment for making wine. Like other small farming operations, the emphasis is on a quality product, and, as John points out, the standard for American wines is high so competition is great. Fortunately, wine makers who also grow their own grapes can have control over what goes into their wine. “There is no way any genius can make good wine from bad grapes,” John says, but, by starting off with good ingredients, a winemaker is at least off to a good start.

Marketing
Marketing strategies for winery operations are similar to those used by most farmers who direct market. Markko Vineyard owner, Arnie Esterer uses a mix of mail order, on-farm sales, tourist events, and a small percentage of wholesale accounts to annually sell about 24,000 bottles of wine that he produces from his 14 acres of grapes. Markko Vineyard is located inside the city limits of Conneaut, Ohio, about 40 miles west of Lake Erie, in a grape growing region that supports several boutique wineries. His winery is open six days a week and is frequented by tourists who are in the area to tour the local wineries. From these visitors, he has generated a mailing list of about 3,500 customers, to whom he sends about three to four mailing a year. Additionally, he holds one or two big events at his winery each season. These events, which include a Lake Erie Perch Fry and Wine Auction and a Blessing of the Vines, bring customers to his winery and ultimately, names to his mailing list.

Arnie expresses a crucial component to the successful marketing of boutique wines when he says that “wineries can’t move, so tourists have to come to the wineries.” Wineries benefit from either being on a highly traveled road or from being big enough to attract customers on their own. He believes that it is essential to have several wineries near each other in a region in order to draw in tourists.

Other outlets for boutique wines include wine festivals, restaurants and liquor stores, and the local community. John Sutcliffe has been impressed by the sales he has made to friends and neighbors. “I would never have believed the local pride for these wines,” he says.
It is also important to note that selling wine is very different than selling produce or flowers, in one big way: it is a federally controlled substance. Because of this there is a substantial amount of paperwork and license applications that must be filed with the Bureau of Alcohol, Tobacco and Firearms (ATF) and comparable state agencies before wine sales can be made. More paperwork has to be attended to before selling at wine festivals or other locations other than the winery. Interstate (including mail order) sales have another set of regulations that make things even more difficult. As boutique wineries across the country are proving, it is possible to sell wine on a small scale, but you cannot be averse to paperwork and familiarizing yourself with federal and state regulations.

Like most small agricultural enterprises, vineyards/wineries are not the quickest nor easiest way to make a living, but they do offer a reasonable income and independent lifestyle for anyone inclined toward entrepreneurship in a business that requires both hard work and creative thinking. In the end, Bill Madison spoke for direct market farmers everywhere when he explained his motivation for staying in the business.

“I like the lifestyle…” he said, “I have a rather short attention span and it lets me do numerous things at the same time. And I’m willing to live at the poverty level.” Obviously, comparisons between small produce farms and boutique wineries are easy to make at every stage of the game.

Rosie Carter writes and farms in southwest Colorado.