Temecula Valley Winery Management Services FAQ
ALTERNATING PROPRIETORSHIP FAQ’S
Approximately 50% of all wineries on the market today are structured under the Alternating Proprietorship concept. An Alternating Proprietorship (AP) is basically a winery without brick & mortar.
It is a means of having a winery without having to own vineyards and/or a production facility with tasting room. AP’s rely on Host Facilities as a service hub for their wineries. The Host Facility is a managed facility that is licensed to support multiple wineries in the production of wine. Now, as an AP, rather than a conventional winery having to invest millions in real estate and construction to build a winery, you can utilize a Host Facility space for a fraction of the cost with no long-term liability consequences. The Host Facility serves as a co-op space for the wineries operating within its program.
You can buy your fruit from someone else, and make your wine in a contracted facility that has all the support services needed to be successful.
In the typical winery model, you (Mr/Ms Client) are the AP, and Temecula Valley Winery Management is your host facility. With this program, you have access to all the winemaking and marketing services provided by TVWM. To make this easier to understand, let’s answer your questions one at a time.
Q) I can own a winery without vineyards and a production/tasting room facility?
A) Exactly. Once you join the program, all the resources needed to be successful are offered through the TVWM program. All you have to do is get properly licensed and invest in brand development. TVWM will provide a detailed proposal upon completion of an in-take meeting with you.
Q) I have my own vineyards, do they qualify as “vineyards” for my winery?
A) Yes, but because your wine will be not be sold in a tasting room within the Temecula Citrus/Vineyard Zone (C/V Zone), but rather in a co-op tasting room located outside the CV Zone, you can source grapes outside the Temecula C/V Zone if you so choose. Being an AP doesn’t mean you can’t have vineyards, or a facility, it just means you don’t have to.
Q) So where exactly is my winery?
A) You become a client of TVWM Host Facility. You have a dedicated space in the TVWM host facility. That dedicated space is identified and licensed as your legally bonded winery space. You utilize all the onsite services from crushing the grapes to releasing your wine. Next, you have the option of offering your wine in a dedicated space assigned to you in TVWM’s Old Town Temecula co-op tasting room. Offering your wine in the tasting room allows you access to the tens of thousands of guests visiting Old Town Temecula annually. All aspects of your winery are housed in the TVWM host facility and co-op tasting room thus eliminating the need to build your own winery/tasting room!
Q) So my wine is made in the TVWM facility, and sold in the TVWM Old Town co-op tasting room?
A) Yes. The tasting room has been designed to accommodate TVWM’s AP clients exclusively. Each AP client will have a designated section of the tasting room that pours and promotes their wines, including selling wine clubs and wine club member benefits/services to the tens of thousands of visitors each year. Because of the booming AP winery model, co-op tasting rooms are serving as sales outlets for multitudes of wineries. This is being done successfully in most every major wine country.
Q) What is my winery’s potential for case good sales?
A) This is largely up to you and your organization’s sphere of influence. If you believe you can tap into markets that allow more inventory sales than the estate produces, TVWM will work with you to source fruit from other vineyards to round out/increase your program… the sky’s the limit!
Q) So what’s the first step creating my own AP Winery?
A) TVWM has a complete management team to take you through the process of setting up your winery.
• You need to get licensed as a winery
• You need to get established as an AP in the TVWM host facility
• You need to identify your market
• You need to determine your winery concept for branding
TVWM offers all the winery services you’ll need to be successful.
Q) How do I get licensed as a winery?
A) TVWM has a compliance service that will guide you through the process, fill out all the documents, file them, and explain the posting process for getting you licensed with both state and federal entities.
Q) How do I get established as an AP with TVWM?
A) TVWM has a coordinator who will take you through the process. It’s mostly orientation and designating space based on your wine program. As you walk through the facility and see it all in action, it will make sense. Just imagine your wine in barrels and tanks located in the host facility gently aging before bottling and release.
Q) Who makes my wine?
A) As a licensed winery you have to designate a winemaker. This could be you and/or a member from your organization… even if you’ve never made wine before… it’s simply a legal technicality. TVWM has highly experienced and respected consulting winemakers on staff. You and/or your designated winemaker can work closely with the TVWM winemaker to make your wine, or if you are a trained winemaker, you can do the bulk of the work with the TVWM team serving as a support service to you – basically it can range from hand squeezing each grape yourself to having a total hands-off approach… the choice is yours.
Q) If I’m using the TVWM winemaker, won’t my wine/s taste like all the other TVWM client wines?
A) Never! With today’s advances in winemaking, a trained winemaker with the proper resources can craft wines that reflect the styles and preferences of the winery the wine is made for. Differences in oak, time in oak, types of yeast used, blends, etc. all influence the final outcome of the wine. Almost every fully functioning winery with production facilities is making wine for someone else. No two wines need ever taste the same. If you’re still not convinced, TVWM can schedule a comparative tasting so you can see for yourself.
Q) What about branding and marketing?
A) TVWM includes a creative team focused on branding and marketing your wines. This process incorporates classic and proven branding and marketing models that work in the wine business. This is a one stop shop from inception to launch.
Q) What if my wine doesn’t sell?
A) With a wine country drawing from a population of over 28 million people in a 2 hour radius, and a winery tasting room built on the main street of a major tourist area that sees thousands of visitors a week, selling your wine becomes a foregone conclusion. You’d almost have to stand in the tasting room and shoo people away to achieve the goal of not selling your wine!
And let’s not forget the wine club dynamic… people join clubs based on unique experience attributes. You most likely have many unique attributes to offer your members. Imagine offering private tastings and events for wine club members in your private tasting room/cellar that’s nestled in the heart of your vineyards. Imagine your wine club members arriving at the TVWM co-op tasting room, checking in with the wine club concierge and being directed to a private shuttle that delivers them to your estate, with you there to greet them with a glass of wine when they arrive… they’d join for that alone!
It is our hope that these questions accelerate your understanding of this truly exciting development in the wine business. There are established facilities like TVWM in other parts of the state with waiting lists for AP clients to join (and they stop at production, expecting wineries to do the marketing themselves.) We are the first of its kind in Southern California and are excited about the opportunity of supporting you with a successful launch of your winery and very exciting and lucrative market.
Call or email us today for more information:
Patrick Bartlett – Executive Director Temecula Valley Winery Management