What kind of gross margin should I be aiming for in my winery?

Another way of asking this is: what is the average cost of good sold for a winery?

Here I am talking about small, premium wineries, selling less than 10,000 cases a year direct to consumers at premium price points.

What costs are included in cost of goods sold?

The raw materials that go into a bottle of wine:

  • Grapes
  • Additives such as yeast
  • Packaging costs, such as bottles, labels, corks, capsules

The costs of turning those raw materials into a finished product

  • Production labor
  • Cellar costs, such as production supplies, production facilities, depreciation on production equipment and barrels
  • Custom services, such as bottling or filtering services

What is the average cost of goods sold for a small, premium winery?

Most wineries don't invest in real cost accounting, so it's hard to pin down the number. Depending on a lot of factors, what I am seeing is a cost of goods of about 30%, or gross margins of about 70%.

 

 

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