Just how high profit margin is Napa/Sonoma wines? While researching the economic impact of Napa wines to CA economy I came across this North Bay Business Journal article that indicates that while Napa County contributes just 4%, thats right F-O-U-R percent, of the
wine in the state it accounts for 21% of the $45.4 Billion dollar statewide economic impact for wine. Combine that with Sonoma county and you’re now looking at 39% from less than 10% of CA wine producing regions.
Still wondering why Dotcom millionaires, Hollywood stars, and even sports stars keep taking a crack at opening a Napa winery? I did get good advice from two people I know who either own or used to own wineries – one called Testarossa in the San Jose Bay Area and one in the Finger Lakes region of NY – it is FAR far harder then it looks and much less glorious than it is made out to be. Everybody is attracted by what they see – the tasting, marketing, meeting, selling – but 90% of the work is crap – bottling, QA, etc… The other point, the production of the wine is not the profitable part in the value chain of wine so many new winery owners are surprised by the amount of work it takes to make money producing. Makes you appreciate people and families that can do it for generations.