Issue link: http://read.dmtmag.com/i/230154
ing some of the distributor markup to the wholesale price without having to pay the distributor – and figure that's all they need to know. "It's a lot of work," Greene said. "Do you really understand everything that is involved? Do you want to be doing that all of the time, when you could be doing what you're good at, which is making wine? A lot of the work is marketing. Unless you're a master of marketing, it can be overwhelming." According to Mike Thompson, whose Boulder Creek Winery in Colorado self-distributes about 400 cases of its 2,000-case annual production, that's only a starting point. He has to make sales calls, deliver wine, stock shelves and check retailer and restaurant inventory. Given the small number of cases he self-distributes, however, the extra duties are manageable. Otherwise, he said, "You need to hire a distributor, even with the lower margins. You can't properly service an account on a weekly basis" if you're dealing with many hundreds or even thousands of cases. "You just don't have the time." In this way, self-distribution fits smaller wineries like Boulder Creek better than large producers, though defining "small" is more difficult than it sounds. It's not so much production size that matters, as it is the resources available, according to those interviewed for this story. Questions to ask before embarking on self-distribution include: + Where does most of your Cary Greene, attorney at Davis Wright Tremaine in Washington, D.C., and outside legal counsel for WineAmerica, says wineries need to understand the amount of work involved with selfdistribution. business come from? If the overwhelming majority is sold through your tasting room and wine club, and you have a bit left over to sell, then self-distribution becomes more feasible. About 40% of Kiepersol's 10,000 cases are self-distributed, which is probably the threshold on the high end. "We are very happy with the Puleo Vega 10 Destemmer-Crusher from Carlsen and Associates." "Not only is it extremely quiet, but it is easy to adjust and gives us the whole berries that we desire." Nicole Marchesi-Winemaker Far Niente Winery Oakville, CA Carlsen & Associates 707-431-2000 www.carlsenassociates.com 130 V I N EYA R D & WINE RY M ANAGEM ENT | Jan - Feb 2014 w w w. v wm m e d i a . c o m