Dry Wine Conversation
Wine is technically called “Bone Dry” if the sugar measures less than 1 g/l (gram per liter) of wine. “Dry” wine is 1 to 10 g/l, “Off-dry” wine is 10 to 35 g/l, “Sweet” wine is 35 – 120 g/l, and “Very sweet” wine is anything over 120 g/l of sugar in wine. This article is not about the levels of sugar, though. It is about the dry conversation surrounding the level of complications which can arise when becoming a legal winery.
I recently took a class on how to open a small winery and was immediately struck by the fact that we are all different and, therefore, governed differently. So, while the information was good, some of it was not accurate for me. My circumstances are as follows:
My goal was to have a Pennsylvania Limited Winery, which means I will sell under 200,000 gallons of wine. I make my wine with grapes from California. My winery is in my garage and I will not have customers here but, instead, I will sell from my VW bus at farmer’s markets and events. I already have an LLC for my wine blog (Vintner’s Canvas) which gives me an EIN (Federal Tax ID), so I only needed papers for doing business as (DBA) Le Garage Winery.
The first step in my feasibility study, before writing my business plan, was my local township. Fortunately, they allow residents to run businesses out of their homes but limit the foot traffic. This works for my business model.
Next, I looked at the state of Pennsylvania’s liquor control board website. It used to be that wineries would not qualify as “limited winery” unless 100% of the grapes are grown in the state, but that rule is no longer valid. This was the piece of information I needed to begin to build my business plan, and to begin the application process.
I applied at the federal level with the Tax and Trade Bureau (TTB) first. Since I’m not making enough wine to pay taxes greater than $50,000 a year, I did not require a bond. This process was rather painless and very fast. I had my permit from them in less than 3 weeks.
My next step was to apply to the State of Pennsylvania Liquor Control Board. Once again, this was painless. I did need to submit drawings, take pictures and have someone come out from the state to check the accuracy of my measurements on my soon-to-be winery.
I made the decision to become a winery in August of 2020, and by September 2020 I had the permits and licenses and made the financial decision to move forward. I got rid of everything in my garage, began to fill it with my equipment for winemaking, and ordered grapes. I’ll share the financials in another article. It can a become significant expenditure if you are not careful.
Some farmer’s markets are part of larger enterprises and they have a stiff application process. It was during this process that I realized I missed a step. I did not apply to the Department of Agriculture who, in Pennsylvania, governs the farmer’s markets, including their growers and producers. A winery is considered a producer/manufacturer of wine even if they do not have a vineyard.
Wine is the easiest of alcohols to govern. The pH of wine is low and the alcohol content is high (13% to 17%). This fact along with the fermentation process means no pathogen can survive in wine. But …. the Department of Agriculture still requires an inspection so that the winery can be registered and licensed by them.
I have already fermented, bottled, and started selling wine which had me worried when I first came to the awareness of my missing this step. This past week I spent hours on the phone getting information to fill out the Department of Agriculture’s application. I spoke with a representative from the department and was told I have to stop selling and finish my garage (literally), but that they are there to help me, not to shut down my business.
I had someone come in yesterday to give me an estimate on work that needs to be done before I have the Department of Agriculture come in for my first inspection. It appears that I am about to embark on an expensive revamp of my winery. I am getting the ceiling drywalled (and insulated), the cinderblock walls sealed, and the garage floor sealed. They also want the winery to have plenty of light so that it’s easy to keep things clean. The good news is that I only have to document my winemaking processes … they do not get involved with the wine itself.
Since I want to serve wine from my bus at events, when the Department of Agriculture is done with me, I still have to go through my county’s health department to get permission.
Each winery will have its own individual complexities based on their chosen business model. My suggestion is to make sure to check with the various levels of departments and bureaus in the state and local government so that the costs can be scoped out early in the business plan. Each step of the way there is also a cost for registration, permits, and licenses.
One day very soon I will be planning a grand opening … this will be much more fun than what I am planning to do within the next month. Thankfully, I have a very supportive crew of family and friends … and I have wine!
