On Wednesday night, June 17, in Santa Barbara, the MIT Enterprise Forum of the Central Coast hosted an informative panel focused on “Winemaking in Santa Barbara County – A World of Entrepreneurs,” at the Cabrillo Pavilion Arts Center.
Topics of a struggling economy, growing competition, and challenges of the wine business were at the forefront. I was out of town and unable to attend, but the Daily Sound did a great job in covering some of the highlights.
Despite the troubled economy and growing foreign competition, a panel of Santa Barbara County wine experts said while the industry is faced with problems, it will follow a cycle and rebound as it has over the past four decades.
The MIT Enterprise Forum of the Central Coast hosted the Wednesday night panel, titled “Winemaking in Santa Barbara County – A World of Entrepreneurs,”at the Cabrillo Pavilion Arts Center.
While the fourth quarter of last year “was the worst ever” for California’s 2,700 wineries, Central Valley and Santa Barbara and San Luis Obispo sales continued to rise even though Napa and Sonoma counties declined, said Rob McMillan, executive vice president and founder of Silicon Valley Bank Wine Practice.
However, Santa Barbara County’s 90 wineries have only 20,000 acres of wine grapes planted while Napa has twice that, he said. And, vineyard land costs about $50,000 an acre while Napa land goes for $250,000 an acre.
Historically, Napa and Sonoma were once considered the state’s “wine country”since regions such as Santa Barbara did not start large-scale production until 40 years ago when only 200 acres were planted with grape vines.
Several of those wineries are of commercial Napa Valley size. The rest are entrepreneurial enterprises founded by winemakers, growers, retired chief executive officers, gentlemen farmers and others in a bizarre collection of interconnecting relationships.
Making a profit
To make a profit, McMillan said, Santa Barbara-area wineries must sell their products for $25 a bottle. That will yield about a 12 percent profit. Most premium California wines sell for about $15 a bottle. But the biggest problem is getting the wine to the consumer, he said.
Joanie Hudson, Director National and International Marketing, Santa Barbara Winery / Lafond Winery & Vineyards
0 Response to “Santa Barbara County Panel”