It’s not quite as bad to do as one might think. The economics of Napa Cab are in another sphere from Paso or even Russian River or Mendocino.
First, packaging costs are less for Pinot and Syrah because bottles cost $1, corks .75, etc. Winemakers for Pinot generally make way less per consult, typically $30-50K. And the fact is that many Pinot and Syrah makers simply can’t afford to hire anyone. They made and sell the wines themselves, take a small salary (if any) and then keep costs in line that way. So their costs are much, much lower. They make may their wines for $25-30 per and still have a nice margin… IF… they can sell direct. Custom crush in Sonoma is $36-48 per case vs. $48-100 in Napa. The costs are lower for almost everything.
The hard part is that there are far less people who buy Pinot and Syrah direct than Napa Cab. And the amount of people willing to buy Syrah or Pinot, even a 97-point Syrah or Pinot, at $100… is very, very low. At 97-points, Napa Cab often sells out at $175+. They are very different clientele. And there are simply far more who want Cab.
Pinot producers, especially, get into the biz BECAUSE they want to make their own wine. Think about how many high-end Cabs are made by the owner vs. Pinot Noir. Very few. Among Pinot (and many Syrah) makers, they often do it all, or maybe have one helper, at least until 1,000 cases.
When I got in this business I was originally inspired by what Pinot-makers were doing. I almost worked for Kosta Browne in 2004 when they were at 2,000 cases and it was only Michael Browne and Dan Kosta working there. I would have been employee #3. And by Brian Loring, who even now is pretty much a one-man show. And Jamie Kutch, who was at 500 cases with only two vintages under his belt and doing it himself. And particularly by Joe Davis of Arcadian, who I almost worked for, as well, in 2005. I felt I could do this because they had. I just wanted to do it in Napa. It wasn’t until I got here that I saw the cost structure was so brutal.
But even now, there are very few (any?) other people in Napa I know who are doing the whole thing, top to bottom, only on their own wine. I take no salary. Zero. So for me, I cut myself a check only after I have paid off all costs and have money left over. I have a good friend as an investor. I have to both make it and sell it to make it work at just 200 cases. Luckily, it’s exactly what I wanted to do in the first place. It can be done.