The supply chain begins with agriculture. No matter what the size of the winery company is–micro, small, small/medium, or medium–each must invest in grape growers and suppliers. Some wineries source grapes from outside growers whereas others use only their own grapes for production. The fluctuation in supply of grapes in the past few years has “resulted in a volatile market for growers” (Monday-Wood-Harper, 22). Some growers look for alternative markets, but others have found it beneficial to establish a business relationship with a winery to ensure quality and satisfaction.
Grape pickers are also a necessity in the agricultural stage. Because grape picking is a seasonal activity, the employees are only needed for a short time each year. Nonetheless, they need to be reliable and have flexible schedules due to weather. Wineries can either hire their own pickers or use an agency that provides them. Those who hire personal pickers must train them and ensure safe working conditions to create a positive environment and encourage them to come back during harvest time. On the other hand, hired agencies are responsible for the training and reliability of the pickers they provide.
Although certain aspects may differ between wineries–such as choice of growers and pickers–the methods of grape production remain fairly conserved. The grapes must be planted, cultivated, harvested (pest control may be needed), picked, sorted, transported, de-stemmed, and prepared for the wine production phase. These activities are universal for grape production; it is the details in business that makes each winery unique. The budget, markets, suppliers, employers, environmental conditions–these are the factors that make a micro winery different from a medium one.
Below is a portion of the supply chain that includes the steps in grape production:
Vol.11-1-2010-Monday-Wood-Harper (pg. 19)