For the first time ever, California legislators recently gathered in downtown San Diego to talk about the state's wine industry.
Their visit signified the increasing importance of local wineries to the state’s overall production.
“The recognition that they want to listen is really important to us as an industry,” said Ed Embly, president of the San Diego County Vintners Association and owner of Hungry Hawk Vineyards and Winery in Escondido.
San Diego County is now home to about 115 wineries, including about 30 urban wineries.
“We'll never be on the scale of Napa, but we'd like to be recognized. We have some great winemakers down here that really care about their craft,” Embly said.
The wine industry is showing tremendous growth in the county with 26 million dollars in sales in 2017.
Yet most wineries are still in the red.
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“There are probably are a few that are making a profit, but in most cases, we're still grasping for that,” said Embly.
The initial cost needed to start a winery business can also be prohibitive.
Embly and his wife Jeannine planted their first grapevines at Hungry Hawk Vineyards and Winery in 2009. They opened a wine tasting room in 2014.
“If you're very lucky, a seven year rule after getting into the business might be where you can expect some profits,” he added. “But you might never be profitable.”
While San Diego's craft beer industry has developed into an economic powerhouse, the boutique wine industry is still in its infancy.
“[Brewers] have a turnaround of three to six months on their product,” explained Embly. “Our product is eight months to three years, and so we have a huge cost of inventory.”
And with their proximity to neighbors, boutique wineries face strict county regulations, which include limits on the size of the tasting room, patios, tables and chairs.
“We would like a little bit of leeway so we can do things that suit the area, that suit the situation and just have some flexibility,” said Embly.
Most winery owners in San Diego generate revenue through wine tastings and wine clubs.
Embly explains that while they want to maintain the one-on-one interaction with customers, many of them would like to expand by also hosting small business events that do not disturb their neighbors.
Currently, expanding upon the county's boutique winery ordinance means applying for an administrative permit.
“The big hurdle there is cost,” added Embly. “We're looking at probably a $75,000 up-front fee to go through that process, and you never really know if you're going to succeed or not and most of the winery owners, we really can't afford that.
Many local wineries produce less than one thousand cases of wine a year.
But vintners have a wide range of grapes to choose from to create their unique blends. About 45 varietals are grown in the area.
“We're a very passionate group of winemaker and entrepreneurs and we know the whole basis of our industry is quality,” said Embly.
Embly said there's a misconception that San Diego's climate is too hot to grow the grapes needed for white wine. However, those grapes can thrive depending on how they're cultivated.
“There are many micro-climates in the county that lend itself to a great variety of types of wine,” he added.
But it's cultivating customers that'll fortify the success of local wineries.
“You mention the name Napa and the first thing that's going to pop in your mind is wine,” said Embly. “San Diego, you mention that to somebody outside the area and it's probably the climate. We want them to say, ‘Well the climate is just great for wine.’”
