Many wine enthusiasts dream of owning their own winery: Spending the year in the vineyard, enjoying the self-produced wine after bottling. However, the reality is quite different, report career changers, specialized winery brokers, and consultants.
Jakob is in a hurry. First, he has to take care of a few things in the cellar, then go out to spray just in time before the rain. He often has no eye for the old vines on the beautiful gray-blue slate weathered soils of the Moselle. A daily routine for a new winemaker. Jakob Tennstedt has already worked for wineries in Austria, Italy, France, and along the Moselle. But managing his own vineyard is something entirely different. His 1.4 hectares on the Middle Moselle keep him busy every day. Few wine enthusiasts imagine the winemaker's profession to be this stressful.
People like Jakob Tennstedt, who have been working in the industry for years, can currently enter the winemaking profession with relatively low investment. "But it takes ten years until the first profit," explains Michael Acker. The oenologist, who specializes in consulting for new establishments, brings interested parties back down to earth even before the purchase. Moreover, he believes that at least ten hectares of vineyards should belong to the estate. Otherwise, the operation does not pay off, he says. The necessary tractors, presses, and equipment cost almost as much to work half the area. The only difference is that you produce much less wine with it.
The costs can be slightly reduced if the newcomer understands a bit about technology. Bernd Meckel, for instance, used to develop robots for the food industry, "which recognize a bread roll with their camera and cut a pattern into it." He then took over the Gut Obercarlenbach in the Palatinate. He repairs the tractor, which today costs as much as a luxury car, himself. This saves a lot of money. Like many newcomers in his situation, he has not given up his previous profession. Because he knows: It takes ten years.
"The most important thing is marketing," emphasizes Roland Minges. The trained electrical engineer is a specialist in the sale of vineyard operations. "Those who do not bring their wines to customers have lost. Many newcomers do not think about that at all." Alexander Hässler had this in mind when he bought his Burgen vineyard in the eponymous town on the Moselle with a good location in Römerberg. He is responsible for sales in a company that produces fire starters. Anyone who can negotiate with the cutthroat retail sector like he does has developed a thick skin. Nevertheless: "Calling, cold calling, convincing, sending samples, and then getting another rejection. It's not pleasant, but it’s part of it," he says. Therefore, Hässler targeted the wholesale market. "There, I quickly sold many bottles with an initial 1.6 hectares, with investments of under half a million euros."
To do this, he delegated most of the vineyard work to a service provider, as it is difficult to manage the workload alone. Outsourcing the complete management can be organized from about one euro per bottle. That is manageable.
"You can also initially buy wines," advises Michael Acker, "even with good operations, some barrels are currently left lying around." However, those who start early in the year can determine the necessary work steps in the vineyard, make decisions during tastings, and perhaps even later enter a winery.
The newcomer Harald Eberhard, on the other hand, is turning the big wheel. "Out of necessity," admits the practicing orthodontist. Eberhard inherited 45 hectares of agricultural land that was so barren that only a few sheep grazed on it. Then he had the idea to start a winery. With Michael Acker's help, Eberhard developed a plan for planting on 24 hectares of vineyards. "We even calculated the row spacing using GPS," he recalls. Today, he has elegantly renovated the listed barn that belongs to the Bleimer Castle, a castle from the 14th century. Over 1,000 guests enjoy events in the modern cellar under magnificent, old wooden beams.
The consultant and vineyard broker Erhard Heitlinger currently sees good opportunities for newcomers – if the conditions are right.
HeitlingerWhat has all this cost? He prefers not to say. "You should have about three million euros," consultant Minges estimates the investment. But that alone is not enough, he adds. "Good nerves" are just as important, "competence, the entrepreneurial gene, long breath, tolerance." Additionally, there are character qualities. A winemaker must be both a farmer and a business economist.
Furthermore, there are many other traps that newcomers can fall into. Almost all founders want to produce organic wine, preferably with solar panels and electric vehicles. This costs a lot of money, but the organic seal only applies after three years of organic management. As a newcomer, it is also difficult to establish oneself. "What do you have that others don’t?" is a popular killer question from wine merchants.
Every winemaker also occasionally has a tank go wrong. With little vineyard area, this is financially painful. Rainy summers, rotten grapes, and late frosts are now part of winemaking, just like heat waves and hail. To cover all these costs and risks, the new winemaker must call for suitable prices. However, many underestimate this.
"Some newcomers produce against demand," warns wine business consultant and estate broker Erhard Heitlinger, "site Riesling is a fine thing. But one often makes money with cold-fermented Sauvignon Blanc for everyday use." The most experienced broker in the German wine industry owned the VDP winery Heitlinger in Northern Baden, founded by his father, from 1972 to 2003. He categorizes buyers into types: Young people with good education as newcomers are one of them. "They are good and tough but often underestimate the time required when doing everything themselves." The typical investor, on the other hand, wants to make money quickly, come by twice a year, and show off a bit in front of friends. "That type falls by the wayside," says the estate broker.
The consultant specializing in vineyard takeovers has experienced all the highs and lows with wineries up to millions and accompanies them. Therefore, he knows exactly what he is talking about when advising interested parties. "Money, personality, competence, and continuity" – these are the most important prerequisites for him. "I have already had millionaires as interested parties whose most expensive wine in their cellar cost five euros per bottle." Of ten interested parties, at most two succeed in becoming successful with their winery, he emphasizes. Entrepreneurs who keep their finances in check and have a time horizon of ten years are more likely to be the right ones.
The "romantic" dreams of a life in picturesque vineyards. "Most of the time, he is a very emotional man in midlife crisis." In the best case, he belongs to the category of "lifestyle wine investor": "They tell me that they work on some board and have completed the capital formation of their lives. They fly 200,000 kilometers a year, have the first heart problems, and forget their daughter's seventh birthday." Somewhat surprisingly: They have good chances of success for him. "They know that they have to exchange their Italian designer shoes for rubber boots – and they want to do that too."
Furthermore, there are the "preservers" who consciously look for a location for premium wines. The historic winery may be in need of renovation: "They want to be the best in the region immediately, but there is already at least one there." However, "with a lot of money," they can also succeed. Great fame may await them.
However, according to Heitlinger’s experience, even these investors face disillusionment: "A dilapidated winery with neglected vineyards and outdated machinery is not worth it." At least 50 percent equity is required. "Even if the operation is worth a million, the bank only accepts half on the asset side." After that, there are also a few complicated agreements with the notary.
According to Heitlinger, there are still good opportunities for a big hit for newcomers. Currently, prices for vineyards – especially steep slopes – are very low because many older winemakers are retiring without successors. There, brave investors could buy very good locations cheaply and produce top wines with the right effort. However, the vineyard broker still sees one thing missing: "You need the courage to reinvent the business with the right story, communicate the story well, and charge 50 euros per bottle."