Issue link: https://read.dmtmag.com/i/705606
w w w. v w m m e d i a . c o m J u l y - A u g 2 016 | V I N E YA R D & W I N E RY M A N A G E M E N T 1 7 At press time, more than $2.3 billion had been pledged to Kickstarter projects, and 104,141 projects were successfully funded. Hermit Woods Winery is one of those success stories. The partners set a goal of $28,000 to complete the winery's tast- ing room, and ultimately raised $28,980 in 30 days. Kickstarter recommends 30-day campaigns and caps the length of all campaigns at 45 days. If the monetary goal isn't reached by cam- paign's end, the project doesn't receive a dime. "It was an enormous amount of work, but worth every minute of it," Manley affirmed. One hundred and seventy-one people con- tributed between $5 and $2,500. Most Kickstarter cam- paigns offer incentives for contributors. But Kickstart- er doesn't allow alcohol as an incentive, so Hermit Woods publicized a host of rewards, from stickers with its winery logo to T-shirts s the saying goes: The best way to make a small fortune in the wine business is to start with a large one. Wine isn't only costly to produce, it's also expen- sive to market. From the vineyard to the tasting room, the dollar signs are dizzying. In recent years, some cash-strapped wineries have grown creative in how they secure money for everything from paying their vineyard workers to building a tasting room. Crowdfunding, the practice of fund- ing a project or venture by raising smaller monetary contributions from a large num- ber of people, is connecting these winer- ies with more than money: It's introducing them to loyal consumers. In 2013, Bob Manley and his Hermit Woods Winery partners, Ken Hardcastle and Chuck Lawrence, had completed 80% of the renovation at their new winery loca- tion in downtown Meredith, N.H., when they ran out of money. Going back to the bank wasn't an option, so they decided to run a Kickstarter campaign. "Kickstarter," the website touts, "can be used to create all sorts of things: art and gadgets, events and spaces, ideas and experiences. But every project needs a plan for creating something and sharing it with the world." Crowdfunding Cabernet Cash-strapped wineries get creative with campaigns that raise money and build brands. + Hone your authentic story and tell it compellingly through a video. + Expect your crowdfunding campaign to consume all of your time for 30 to 45 days. + Analyze your social network prior to launch and have a plan for spreading the word. + Create rewards that offer contributors the chance to be a part of the winemaker lifestyle. AT A GLANCE WINE WISE MARKETING JENNIFER STRAILEY Crowdfunding is connecting wineries to both money and loyal customers.