as we reflect back on our year, we have had our fair share of success and frustration.
Our sales continue to climb and we are up another 48% year over year. We have moved to bigger shows, and we liked making a LOT for a one day show (which would have been more, but we ran out of wine). People are still viewing our wines favorably and we continue to try new blends to keep our line up fresh. We are learning more about economies of scale and have hit maximum density of producing in our "wine cellar".
Our attempt to purchase the 30 acre farm has been at a stand still due to the neighbor filing the lawsuit to challenge the variance. He has deep pockets and continues to delay the process, which we know will eventually go our way, but is delaying our actions until this is settled. We have heard that he intends to fight us the entire way. In the meantime, the seller of the property has changed her terms from a 5 year, no interest payment, to a full payment up front. The costs for a new building were viscously under estimated. A friend put up a pole building for $100K, but we were told ours would cost 8 times that amount. PA now has a law that requires no liquid waste from a winery, brewery or distillery can be put down a septic system. This has proven to be a stumbling block which will require some thinking to solve. We are now seeking alternative locations.
We also have considered a store front/retail location to get us over the hump of people wanting to purchase wine. Although this would provide a stop gap to sell our wine, this has not been received well by our customers who are asking for a location to come and purchase/drink wine. we now have alternative locations for a winery, each having positives and negatives. Our county has started a Pour Tour to promote wineries, breweries and distilleries. We are called daily asking for our hours, which we had hoped to have in the spring. Needless to say, tough decisions and much thought will have to be made (along with writing some big checks).
We continue to seek additional wines to add to our line up. We have rotated our wines from spring and summer to fall and winter wines. This allows us to temporarily retire some wines and stock up on them in the off season, then bring them back in season as a newer wine. Our dry red blend that used to take 2 years to sell out a batch is now selling out in 3 months. We have increased our tank sizes and our bottling equipment. Space continues to be at a premium.
we now have an operation website, though we are not taking orders from the site. Our site is in its infancy and needs to be further developed.
We expanded this year to 2 farmer's markets. Our sales increased dramatically, causing some issues in production (resulting in some long nights to be ready for those markets). We are seeking a third market for 2020. These farmers markets have done wonders on our cash flow.
Our bank account is healthy, and the winery is self supporting. We have been able to pay ourselves back all the seed money which was used to start the winery, along with any money used along the way. The winery has purchased 2 pickup trucks (paid for in cash) and we continue to flow more to our bottom line. It has taken 5 years, but the winery is totally debt free, running on its own merits and is ripe for expansion.
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