BC Business
Wineries require considerable upfront capital investment, but are a significant profit generator with margins of up to 70 per cent according to some estimates.
This compelled Rob Ingram to launch Terrabella Wineries Ltd., a company just shy of completing an $11-million private fundraising campaign that will establish wineries in Penticton, Kelowna, Oliver and Greater Vancouver.
To date, Terrabella has purchased and completed a major renovation on Perseus Winery in Naramata, commenced construction on the 8,500 square foot Helios Winery (to complement its acquisition of an 18-acre vineyard in West Kelowna) and expects its Oliver and Greater Vancouver ventures to be operational by 2015—not too bad for a firm that was launched in 2010.
During this time, Ingram has also acquired some of the best winemakers and viticulturists in the province. But what truly distinguishes Terrabella from other fledgling wineries is Ingram’s business skills: he is a CA, was formerly BCTV’s vice president of finance and not only established the Western Canada division of Cascades Fine Paper Inc., but grew it into a $95-million operation.
Terrabella’s business model is designed to capitalize on the consolidation of multiple wineries. The synergies realized from a multi-winery model further boosts the bottom line in an already high-margin industry that enjoys the security of having most of its assets in historically appreciable land.
As he finalizes plans to raise the remaining $3.5 million, Ingram has advice for anyone curious about entering the wine business. “It is all about sales. There is no sense marketing [your products] until you have enough outlets where your customers can access them. You have to build high-traffic locations, work with great sales agents and build inventories of quality wines. Most importantly, you need to ensure that you have sufficient capital in place to carry out your plan.”