With a growing demand for high-end wine and an ever-shrinking pool of available land in premium California locations, vineyard leasing and joint ventures are becoming an excellent alternative for small to medium-sized boutique wineries looking to avoid the large upfront capital expenditures involved in purchasing and maintaining their own vineyard. As the industry continues to grow, it will be options such as land leasing and joint ventures that will allow new entrants into the market and a greater stability to the entire field.
The California Wine Institute is your best source of current information for all matters affecting the California wine industry and grape growers.
The taste of a wine depends not only on the grape species and varietal blend, but also on the ground and climate (known as terroir) where it is cultivated. Terroir refers to the unique combination of natural factors associated with any particular vineyard. These factors include such things as soil, underlying rock, altitude, slope of hill or terrain, orientation toward the sun, and microclimate (typical rain, winds, humidity, temperature variations, etc.) No two vineyards have the exact same terroir.
Vineyard & Wine Producing Economics
Vineyard and wine producing economics can vary widely from region to region and property to property. Always seek professional advice on specific properties and verify all information for your own purposes.
Vineyard planting can run between $15,000 and $50,000 per acre, depending on how much soil prep and grading is needed. Contract vineyard planting and maintenance services are available in all wine producing regions.
General yield can be 2 – 6 tons per acre, subject to Mother Nature and pruning techniques. Some vineyards will prune the vines down to 1 – 3 tons per acres for a higher sugar content and/or other reasons relative to the desired end product.
It takes about six to eight clusters, or approximately 600 to 800 wine grapes (2.4 lbs) to make a bottle of wine. One barrel of wine contains approximately 740 lbs of grapes, equivalent to 59 gallons or 24.6 cases of wine.
Vineyard maintenance can range from $100 to $300 per acre per month or more, depending on end product objectives.
Wholesale grape prices can range from $100 per ton in glut years to $1,000+/- per ton and up for premium grapes.