10 Steps to Expand Your Winery

Delaney McDonald
August 11, 2020

Looking to enter a new market or bring new wines to the marketplace? Growing any business can be complicated, and the beverage alcohol industry is no exception. Not knowing how or where to begin can be the biggest hurdle. From market research and branding to strategic considerations and compliance, this 10-step guide will get you on the right path in expanding your winery’s footprint.  

1. Assess your current operations

Before trying to expand or launch a new product, it’s important to take a look at your current operations. Make sure you are already meeting all registration and compliance requirements and determine if you have enough staff, equipment and financial resources for an expansion.

2. Evaluate the market

Do extensive research on what varietals are trending, up and coming, and currently popular to help you determine if your product will have demand right away. Determine which states have the highest wine consumption, signalling strong demand. This will help you determine who to target, and how your winery can capitalize on market opportunities.

3. Revisit your branding

In a market with hundreds and hundreds of options it’s important to make your brand and product attract consumers’ attention. Consider how you can present your brand through visual design, aesthetically pleasing or differentiated packaging, a compelling brand story, or any other component that makes your brand unique.

4. Know your audience

For your target audience, identify things like geography, age, psychographics, shopping preferences, and the types of wine and brands frequently purchased. Knowing and applying this information to your product will help it resonate with consumers on a personal level, increasing the likelihood of success.

5. Plan your strategy

Successful expansion relies on meticulous planning. Figure out your distribution strategy for each new area you want to enter and refine your sales pitch. Pin down details like if you are targeting a more local or national audience, and if your messaging and product placement will remain the same regardless of the market you enter.

6. Sort out your logistics

After you’ve planned your strategy, now it’s time to organize the logistics, from supply chain to infrastructure. These factors can change based on location and the type of wine you sell, so it’s important to have a thorough understanding and extensive plan.

7. Choose your distributors

Make sure your distributors will care for your products, and be transparent with them regarding the time and resources you need. Verify that your products will fit in with their sales model and establish clear goals that you can use to measure success in the future. Taking the time upfront to determine if your distributors can meet your needs will save you a lot of time and resources down the road.

8. Get compliant

Now it’s time to obtain all the correct licenses and registrations you need to legally distribute your wine in new states. When it comes to excise taxes, shipping reports, licenses, registrations, price posting, and Certificates of Label Approvals (COLAs) the rules and requirements vary by state, making compliance complicated. Don’t underestimate the time, effort and importance of this step.

9. Remain compliant

Stay on top of your compliance with regularly paying taxes and filing shipping reports. Actively track your data and measure your performance periodically to make sure you’re meeting goals and expectations and remain in good standing in each state where you have sales. If you get behind on state filings you risk penalties, fines or loss of licenses.

10. Assess, reflect, repeat

Assess the process and reflect on your successes and any mistakes you’ve made along the way. Use this information to better your next expansion—whether it’s moving into even more regions or increasing product diversity.

Help your winery get and stay compliant today.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Delaney McDonald

Share This Post
Share on facebook
Share on twitter
Share on linkedin
Share on email

North America ShipCompliant
June 18, 2021
How to Streamline Your Wine Shipping With UPS and FedEx

Wineries that use FedEx or UPS to print shipping labels for beverage alcohol packages can integrate with ShipCompliant to streamline the fulfillment process. This means: No more typing addresses to print labels One click can pull all shipment information from ShipCompliant into FedEx or UPS –  your labels are ready to print Tracking numbers sync […]

EMEA Tax Compliance VAT & Fiscal Reporting
June 17, 2021
Poland VAT Reporting: Draft Amendments to JPK_V7M/V7K Published

In Poland, the Ministry of Finance proposed several changes to the country’s mandatory JPK_V7M/V7K reports. These will take effect on 1 July 2021. The amendments offer administrative relief to taxpayers in some areas but create potential new hurdles elsewhere. Poland JPK_V7M and V7K Reports The JPK_V7M/V7K reports – Poland’s attempt to merge the summary reporting […]

North America ShipCompliant
June 17, 2021
Can Retailers Do Direct-to-Consumer (DtC) Wine Shipping?

The demand among retailers and consumers for interstate direct-to-consumer (DtC) wine shipping is growing, further bolstered in the wake of the COVID-19 pandemic. Retailer DtC shipping is allowed in just 15 states and the District of Columbia, but retailers still saw significant increases in online orders and DtC shipping in the past year. But what […]

EMEA VAT & Fiscal Reporting
June 16, 2021
VAT Trends: A Shift Toward Destination Taxability for Certain Cross-Border Transactions

As detailed within our annual report VAT Trends: Toward Continuous Transaction Controls, there’s an increasing shift toward destination taxability which applies to certain cross-border trades. In the old world of paper-based trade and commerce, the enforcement of tax borders, between or within countries, was mostly a matter of physical customs controls. To ease trade and […]

EMEA Latin America Mexico VAT & Fiscal Reporting
June 15, 2021
Understanding Mexico’s Carta Porte Supplement

On 1 May 2021, the Mexican tax administration (SAT) released one of the most important updates to the electronic invoicing system of the country since 2017. The update was about the new Bill of Lading Supplement (locally known as Suplemento de Carta Porte) that should be added as an annex to the electronic invoice (CFDI) […]