Winery Start up costs

Receiving Equipment
Cellar Equipment
Material Handling
Refridgeration System
Fermentation & Storage
Cooperage
Tasting Room
Plant & Office
Capital Investment

10,000 Cases 300,000 Cases

141,000
3,525,000
22,500
562,500
65,000
1,625,000
106,000
2,650,000
104,500
2,612,500
342,500
3,500,000
6,000
967,000
21,357,000
1754500
35832000

Break Even Analysis

Winery Assumptions
Cases

Bottles

Gallons

Tons

Fruit-Trucks

750

9,000.00

1,800.00

11.25

0.45

1,200.00

14,400.00

2,880.00

18

0.72

2,500.00

30,000.00

6,000.00

37.5

1.5

5,000.00

60,000.00

12,000.00

75

7,500.00

90,000.00

18,000.00

112.5

4.5

10,000.00

120,000.00

24,000.00

150

15,000.00

180,000.00

36,000.00

225

25,000.00

300,000.00

60,000.00

375

15

50,000.00

600,000.00

120,000.00

750

30

100,000.00

1,200,000.00

240,000.00

1500

60

150,000.00

1,800,000.00

360,000.00

2250

90

200,000.00

2,400,000.00

480,000.00

3000

120

250,000.00

3,000,000.00

600,000.00

3750

150

Cost to
Produce a
Bottle Premium
Chardonnay
with a Price Of
$40/Bottle
Purchase
Price For 750 ml per bottle

Cost to
Produce a
Bottle Premium
Cabernet
Sauvignon with
a Price Of
$60/Bottle
Purchase
Price For 750 ml per bottle

1
1 Ton
Ton Of
Of Grapes
Grapes =
62
Cases
Cost Of Wine Per
Bottle

$4.03

1
1 Ton
Ton Of
Of Grapes
Grapes =
62
Cases
Cost Of Wine Per
Bottle

$6.50

A 12 Bottle case
(inclu: glass, box,

A 12 Bottle case
(inclu: glass, box,
Case
Cost
Number
Of Bottles
In A Case
Labor
(163220)/120000 =
Labor per bottle
TOTAL COST PER
BOTTLE
Age whites one
year
Boxed Wine

3 Boxes 3 liters
per box

$3,000
744 Bottles

$8.90
12

Case
Cost
Number
Of Bottles
In A Case

$7,000
744 Bottles
$9.41
$7.50
$11.40
12

$1.36
$6.17

TOTAL COST PER

BOTTLE
Age reds two years

$14.56

3 boxes = 1 case of
wine 1 box = 4
bottles (750ml)
Cost per case $3
Labor 4*1.36

$5.44

$ per case

$ per bottle

Cost Outlook Five Years

1 (5,000 Cases)
Grapes

108,583.56

Cooperage
Packaging

2 ( 10,000 cases)

3(10,000 cases)

4(10,000 cases)

212,442

216,691

221,025

121,946.11

238,458

243,227

248,091

162,156.98

317,087.41

323,429

329,898

Bottling

26,813.49

51,275

52,301

53,347

Taxes

35,814.82

109,582.02

111,774

114,009

Labor

150,756.18

210,298

214,504

218,794

Marketing
Other(Utilities,
office
supplies, etc)

19,496.29

32,390

33,037

33,698

15,484.14

27,057

27,598

28,150

Total Variable Cost

641051.57

1198589.39

1222561.178

1247012.401

Insurance

6,588.99

10,565.17

10,776.47

10,992.00

Maintenance

3,492.17

6,055.64

6,176.75

6,300.29

Property Tax

14,074.41

22,701.38

23,155.41

23,618.52

Depreciation

169,413.72

299,786.74

305,782.47

311,898.12

Interest

32,450.28

54,394.79

55,482.69

56,592.34

Cost of Equity

37,773.66

36,931.97

37,670.61

38,424.02

Total Fixed Costs

263793.23

430435.69

439044.4038

447825.2919

904844.8

1629025.08

1661605.582

1694837.693

TOTAL COST

Year One Sales

Consumer Price
White:
Consumer Price

19.99

Red:

24.99

Year Two Sales

Year Three

Costs By Case
5(10,000 cases)

5,000

Cost By Bottle

10,000

5000 Cases

225,445

21.716712

21.244222

1.809726

253,053

24.389222

23.845767

2.032435167

336,496

32.431396

31.708741

2.702616333

54,414

5.362698

5.127507

0.4468915

116,289

7.162964

10.958202

0.596913667

223,170

30.151236

21.029833

2.512603

34,372

3.899258

3.238954

0.324938167

28,713

3.096828

2.705713

0.225476083

1271952.649

128.210314

119.858939

10.65159992

11,211.84

1.317798

1.056517

0.088043083

6,426.29

0.698434

0.605564

0.050463667

24,090.89

2.814882

2.270138

0.189178167

318,136.09

33.882744

29.978674

2.498222833

57,724.19

6.490056

5.439479

0.453289917

39,192.50

7.554732

3.693197

0.307766417

456781.7977

52.758646

43.043569

3.586964083

1728734.447

180.96896

Year Four Sales

Year Five Sales

162.902508 Cost Per Bottle

14.238564
5,000 cases

Cost By Bottle
10000 Cases
1.770351833
1.98714725
2.642395083
0.42729225
0.9131835
1.752486083
0.269912833
0.225476083
9.988244917
0.088043083
0.050463667
0.189178167
2.498222833
0.453289917
0.307766417
3.586964083
13.575209
Cost Per Bottle
10,000 Cases

Cost Outlook Five Years

1 (200,000 Cases)
Grapes

2 ( 225,000 cases)

3(250,000 cases)

4(275,000 cases)

4,430,880.00

5,084,986

5,650,474

6,214,493

4430880

5084985.6

5650473.6

6214492.8

4430880

5084985.6

5650473.6

6214492.8

Cooperage
Packaging
Boxing
Taxes
Labor
Marketing
Other(Utilities, office
supplies, etc)
Total Variable Cost
Insurance
Maintenance
Property Tax
Depreciation
Interest
Cost of Equity
Total Fixed Costs
TOTAL COST
Cost of Grapes 1
Ton
Cost of Grapes
Washington 2013
Each case = 3
boxes

$1,411.59
Carbernet
Sauvignon

1,440

968
Red

Costs By Case
5(300,000 cases)

300,000

Cost By Bottle

Avg Over 5 years

5000 Cases

6,647,040

6647040

6647040

0 Cost Per Bottle

5,000 cases

Cost By Bottle
10000 Cases
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Cost Per Bottle
10,000 Cases

Small Winery Bottled

1 (5,000 Cases) 2 ( 10,000 cases) 3(10,000 cases) 4(10,000 cases)
2014
2015
2016
2017

Revenues:
Red wine (24.99)
White wine (21.99)
Tasting room
Total Revenues
Grapes
Cooperage
Packaging
Labor
Marketing
Other (Utilities, office supplies, etc)
Total Variable Cost
Insurance
Maintenance
Property Tax
Depreciation
Interest
Cost of Equity
Total Fixed Costs
TOTAL COST

Net Income Before Taxes

Income Tax expense
Net Income After Taxes

0
0
0
0

501,372
5,497.50
506869.5

1,752,192
1,027,812
6,135.21
2786139.21

1,796,775.60
1,054,614.00
6,553.02
2857942.62

108,583.56
121,946.11
162,156.98
150,756.18
19,496.29
15,484.14
578423.26
6,588.99
3,492.17
14,074.41
169,413.72
32,450.28
37,773.66
263793.23
842216.49
0
0
0

212,442
238,458
317,087.41
210,298
19,496.29
27,057
1024839.05
10,565.17
6,055.64
22,701.38
299,786.74
54,394.79
36,931.97
430435.69
1455274.74
-$948,405.24
-$379,362.10
-$569,043.14

216,691
243,227
323,429
214,504
19,496.29
27,598
1044945.905
10,776.47
6,176.75
23,155.41
305,782.47
55,482.69
37,670.61
439044.4038
1483990.309
$1,302,148.90
$520,859.56
$781,289.34

221,025
248,091
329,898
218,794
19,496.29
28,150
1065454.898
10,992.00
6,300.29
23,618.52
311,898.12
56,592.34
38,424.02
447825.2919
1513280.189
$1,344,662.43
$537,864.97
$806,797.46

5(10,000 cases)
2018

Boxes

1,894,042.08
1,147,198.68
6,926.85
3048167.61
225,445
253,053
336,496
223,170
19,496.29
28,713
1086374.07
11,211.84
6,426.29
24,090.89
318,136.09
57,724.19
39,192.50
456781.7977
1543155.867
$1,505,011.74
$602,004.70
$903,007.05

3*300,000=
900,000 boxes

900,000
2014

Large Winery Boxed

900,000
2015

Red wine (15.79)

White wine (15.79)

2,842,200.00
6,150,870.00
0
8993070

5,542,290.00
6,212,378.70
0
11754668.7

25% purchase/quality discount

3,115,800.00
1,829,190.00
900,000.00
753,780.90
78,463.56
309,682.80
6986917.26
32,944.95
17,460.85
70,372.05
847,068.60
162,251.40
188,868.30
1,318,966.15
8305883.41
687,186.59
274,874.64
412,311.95

3,115,800.00
1,829,190.00
900,000.00
753,780.90
58,847.67
309,682.80
6967301.37
32,944.95
17,635.46
71,075.77
855,539.29
163,873.91
190,756.98
1,331,826.36
8299127.732
3,455,540.97
1,382,216.39
2,073,324.58

Total $1 per Box of wine

Cost Per Box

23.19818338

7.732727793
6959455.014

Cost Per Box

4.483150223
27.6813336
Cost per box >

1.494383408
1344945.067
8304400.081
9.227111201

Large Winery Boxed

900,000
2016

900,000
2017

900,000
2018

6,934,968.00
6,274,502.49
0
13209470.49

6,305,420.70
6,337,247.51
0
12642668.21

6,368,474.91
6,400,619.99
0
12769094.89

3,115,800.00
1,829,190.00
900,000.00
753,780.90
39,231.78
309,682.80
6947685.48
32,944.95
17,811.81
71,786.53
864,094.68
165,512.65
192,664.55
1,344,815.18
8292500.656
4,916,969.83
1,966,787.93
2,950,181.90

3,115,800.00
1,829,190.00
900,000.00
753,780.90
39,231.78
309,682.80
6947685.48
32,944.95
17,989.93
72,504.39
872,735.63
167,167.78
194,591.20
1,357,933.88
8305619.358
4,337,048.85
1,734,819.54
2,602,229.31

3,115,800.00
1,829,190.00
900,000.00
753,780.90
39,231.78
309,682.80
6947685.48
32,944.95
18,169.83
73,229.44
881,462.98
168,839.46
196,537.11
1,371,183.77
8318869.248
4,450,225.65
1,780,090.26
2,670,135.39

Marketing costs

Small Winery

Branding
Advertising
Direct marketing
Events
Total marketing
costs

Marketing costs

2014

2015

2016

2017

5848.887

7798.516

8773.3305

11697.774

9748.145

8773.3305

4874.0725

7798.516

5848.887

4874.0725

3509.3322

3899.258

7798.516

9748.145

19,496.29

19,496.29

19,496.29

19,496.29

Large Winery
2014

2015

2016

2017

19615.89

15692.712

13731.123

11769.534

11769.534

13731.123

17654.301

19615.89

Direct marketing

5884.767

5884.767

5884.767

5884.767

Internet
marketing
Total
marketing
costs

1961.589

3923.178

3923.178

3923.178

39,231.78

39,231.78

39,231.78

39,231.78

Branding
Advertising

2018
9748.145
3899.258
2924.4435
14622.2175
19,496.29

2018
9807.945
23539.068
5884.767
3923.178
39,231.78