Why Wineries Fail (Part II)

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Published: Saturday, 24 March 2012 13:59

Written by David DeCiero

Part I dealt with bad product and bad processes/bad management

Earlier, we went through some reasons why wineries fail. Those reasons were bad product, bad marketing, and poor processes.

Another reason why wineries fail is a problem with a partnership. Usually, wineries are formed as a partnership, either between friends, spouses, or other family members. The problem usually arises when there is a problem between the people in the group. This disruption can lead to a dissolution of the partnership and if the remaining partner cannot support the business, the winery will close. Sometimes, this doesn’t cause the winery to close, but creates a major disruption to the business. Partnerships can be very beneficial, but when it doesn’t work out, it tends to end the business.

The final reason I have seen for wineries failing is a loss of interest in the business. Now, it may seem that this will never happen to a person, but it has caused more than one winery to fail. Essentially, when it no longer becomes fun, and more like a business, it may not seem worth the effort.  The fact of the matter is that running a winery is like any other business.  There are a lot of other things that go on besides the winemaking.  (Which, we know is the fun and exciting part).  It is all of that other stuff (managing suppliers, employees, inventory management and marketing) that will consume the majority of an owner’s time.  This can sap a person’s energy pretty quickly and make one lose sight of the main goal, to make great wine.