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What is a Virtual Winery

In the world of wine, a growing trend is revolutionizing the traditional concept of winemaking - virtual wineries. But what exactly is a virtual winery, and how does it differ from a conventional winery? Read on to learn more, plus our view on how virtual wineries could be the way of the future for new and up-and-coming winemakers.


Wine bottle


What is a Virtual Winery?


A virtual winery, also known as a "micro-winery" or "negociant winery," is a unique concept where the winery does not own vineyards or a physical winemaking facility. Instead, virtual wineries source grapes or finished wine from independent growers or established wineries and focus on the blending, aging, and marketing aspects of winemaking.


Virtual wineries often operate on a smaller scale compared to traditional wineries, allowing them to be more flexible and experimental in their winemaking practices. This model provides an opportunity for winemakers to showcase their creativity and produce high-quality wines without the significant upfront investment required to own vineyards and a winemaking facility.



How Does a Virtual Winery Work?


Creating wine at a virtual winery typically begins with the winemaker selecting the desired grape varieties or finished wines from partner growers or producers. These grapes or wines are then transported to a shared facility or custom crush facility where the winemaking process takes place.


Virtual winemakers have the freedom to experiment with different grape sources and winemaking techniques to create unique and distinctive wines. They are involved in every step of the winemaking process, from blending and aging to bottling and labelling, ensuring that the final product meets their standards of quality and flavour profile.


"Owning a virtual winery means that entrepreneurs can get incredibly involved in the winemaking process or not.", says the team at the Beverage Trade Networks, "Some owners like to actually drive or fly out to the vineyard and select the Grenache or Cabernet grapes that will go into their product, or even take part in the harvest. For others, the entire transaction gets handled over the phone, and their product is bottled, labeled, and shipped without them ever setting foot on the vineyard."


The Cost of Land Makes Virtual Wineries the Only Choice for Many


As demand for affordable wines continues to rise, so does the price of vineyard real estate. The ability to take the traditional route by sourcing a plot of land and growing your own grapes slowly becomes out of reach for many entering the winemaking space.


In wine regions such as Napa Valley, Bordeaux, and Tuscany, the cost per acre can reach astronomical heights, often pricing out all but the most well-heeled investors.


“We’re not crazy expensive like the Okanagan, but we have a very small area to grow grapes here,” Shiraz Mottiar of Malivoire Wine Company told Lush Life. “For an established vineyard here, you’re looking at $50,000 to $75,000 an acre.”

In the Okanagan, the price per acre for vineyard land reaches amounts close to 1 million dollars Canadian.


The reasons behind the soaring cost of vineyard land are multifaceted. First and foremost, the limited supply of prime vineyard sites plays a significant role. In established wine regions, suitable land for grape cultivation is scarce, driving up prices as producers compete for the best plots.



Benefits of Virtual Wineries


Flexibility:

Virtual wineries have the flexibility to source grapes from various regions and growers, allowing them to create a diverse portfolio of wines.


Lower Overhead Costs:

By not owning vineyards or a physical winemaking facility, virtual wineries can reduce their overhead costs and focus on producing high-quality wines.


Creative Freedom:

Virtual winemakers have the freedom to experiment with different grape varieties, blends, and winemaking techniques, leading to innovative and unique wine offerings.


Cognitive Diversity in Wine:

The concept of a virtual winery makes winemaking and production accessible. This limits barriers for new and up-and-coming winemakers to enter the industry and provide wines that come from their unique perspectives.



A Few Notable Ontario Virtual Wineries to Checkout!


Nyarai Cellars: Crafting elegant and expressive wines showcasing the best of Ontario's terroir.

Bachelder Wines: A masterful expression of Burgundian-style wines, meticulously crafted in the heart of Ontario.

80X Wine Company: Innovatively blending tradition with modern winemaking techniques to produce exceptional wines.

Maenad Wines: Embracing minimal intervention winemaking to produce unique and dynamic wines that reflect the vineyard's essence.


Virtual wineries are reshaping the wine industry by offering a new approach to winemaking that prioritizes diversity, creativity, flexibility, and quality. As traditional winery ownership and land acquisition continue to be hurdles, wine consumers should revel in the thought that regardless of the landscape, they can expect to see new and unique wine expressions on the shelf.

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