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2 considerations before buying a California winery or vineyard

Many winery owners started out as wine enthusiasts before turning their love of the beverage into a successful business endeavor. Appreciation of wine attracts many to the industry, but the chance of high earnings is often what keeps them there.

Like others, you may be thinking about buying a vineyard or winery so you, too, can make money in an industry you enjoy. The wine business can indeed return lucrative rewards, but there are a few things to consider before you take the plunge.

Is the environment right?

Many components must be in harmony to produce grapes that create truly fine wines. Unless you’re also a climatologist or soil scientist, you probably cannot determine if the ground and other conditions are right for growing grapes.

Consider having someone experienced with cultivating grapes may help you learn more about the property.

Can you meet the operating requirements?

Wine operations in the U.S., including California, are heavily regulated. In addition to special tax requirements, you must also keep careful records and file timely operations reports. You must even follow specific regulations when naming and labeling your wine products.

Make sure you are prepared to comply with federal and state wine laws and regulations before you complete the purchase.

You may overcome these and other obstacles with a team of professionals supporting you in your search for a suitable vineyard or successful winery. Putting someone with legal experience on your team may help to ensure your purchase does not expose you or your money to undue risk.

For example, they can review your purchase agreement and associated documents to identify unfavorable terms before you buy the property.