Winemaking co-operative

A winemaking cooperative is an agricultural cooperative which is involved in winemaking, and which in similarity to other cooperatives is owned by its members. The members in a winemaking cooperative are usually vineyard owners, who deliver grapes to the cooperative, which is involved in production of wine from the grapes and the subsequent marketing activities.

Winemaking cooperatives are responsible for a significant proportion of the total wine production in many major wine-producing countries, including most of the classical European wine countries, but their importance varies much between different wine regions within these countries. Cooperatives tend to be more important in regions where the wine’s selling price is relatively low and average size of vineyard holdings is small.

While some winemaking cooperatives were established in the 19th century, the majority were established in the early 1930s following the Great Depression.

The advantage to members of a cooperative, in comparison to pursuing winemaking and marketing on their own, consists in pooling resources and sharing costs for winemaking and marketing, which call for costly equipment and technical expertise. There are also other financial advantages, including certain European Union subsidies for cooperatives located in EU countries.

Wines from cooperatives are often allowed to be described as producer-bottled according to the wine laws of the country in question, which is sometimes an advantage in marketing. The French term corresponding to this is mis(e) en bouteille à la propriété, while the German is Erzeugerabfüllung.

Producing and marketing the wine on his or her own is usually not a realistic possibility for many vineyard owners with small holdings. However, being a member of a winemaking cooperative is not the only option available. Selling grapes on the open market, entering into long-term contracts with negociants or other winemaking companies and leasing out the vineyard to certain negociants are other options. The relative attractiveness of these options vary greatly between regions. As an example, in regions characterised by constant overproduction of wine, the market price of grapes is often depressed to a very low level, while grapes in Champagne command much higher prices as long as they fulfill some basic criteria.

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