A Winery Gone Green!

If passed, House Bill 80 has beneficial application for winery owners looking to use the latest technology in solar or geothermal heating.  Staff writer George Mattar of the Bucks County Courier writes an interesting article on renewable energy and its benefits to a local Bucks County winery.   For more information read: Some grapes are purple, but this winery has gone green.

What Wine Or Hospitality Business Are You Creating? Forming the Sole Proprietorship

In my recent travels along the Pennsylvania wine trail, I met an entrepreneurial minded young lady who expressed an interest in forming a “wine-tasting business”.   We briefly explored her needtype of business formation to create the right business structure.   Thus, I thought I would  discuss the various business structures for those of you who are considering opening your own winery, restaurant, catering, event planning, bed and breakfast or hospitality business.  The type of business structure you choose is determinative of the personal liability and tax consequences you will face. You will need to consider the amount of control you wish to have as well as your business exposure to lawsuits.

There are advantages and disadvantages to each form of legal business structure.   The different types of business entities include: Sole Proprietorship, Partnership, Corporations, and Limited Liability Company. I will discuss the differences in these legal structures in a series of several posts.   As you consider starting your own wine or hospitality based business, think about how you want your business to be structured.   In today’s post, I will begin with the Sole Proprietorship.

Sole Proprietorships

The most simple of business structure is the sole proprietorship.   There are no multiple owners in this form of business structure.   The sole proprietorship is the easiest and least expensive business structure to operate.  In this type of business formation you are in sole control of the management of your business.  This is one of the advantages of operating as a sole proprietorship.   There are no organizing documents to be filed with the State.   First, name your business.   You should determine that the name you select is available for use and that you are entitled to use it.   Any sole proprietorship conducting business under a fictitious name (a name other than your own) must register this name with the Pennsylvania Department of State Corporation Bureau.   In the Commonwealth of Pennsylvania if you operate your sole proprietorship under a name other than your own, you are required to publish an advertisement in two newspapers in the county where your business is located. You must state that you have filed or intend to file a fictitious business name registration. While you are not required to do so, you may want to give consideration to registering your business name as a federal and or state trademark.

Every business subject to employment taxes is required to have a Federal Employer Identification Number (EIN) to identify the business with the Internal Revenue Service (IRS) and Social Security Administration (SSA).  You may apply for an EIN even if you have no employees.   This will make it easier for you to establish your business’s bank accounts.  You should preferably keep your business finances and record-keeping separate from your personal accounts.

While the sole proprietorship is the simplest form of legal structure, do not sleep on your obligations.   As a sole proprietor, you can personally be held liable for all financial obligations of the business.   This also includes any unlawful acts of your employees.  You ask, what does this mean?  It means that if you don’t pay your suppliers, fail to pay your creditors, or you lose a lawsuit, then the business (which is you) has to pay.    If you fail to pay, your creditors could legally come after your home or your possessions.

Tax filing for the sole proprietorship has easy reporting requirements.  Legally, the sole proprietor is not separate from the individual who owns it.   Business income or losses are reportable through the IRS Tax Form 1040, Schedule C with the sole proprietor’s personal income tax return.  Sole proprietorships avoid double taxation often associated with certain corporations.

You should ensure that you have all licenses or permits required to operate your business as most counties or cities require sole proprietorships to obtain local zoning, seller’s permits or business license and tax registration certificates.

In the next post of this series, we’ll consider the other forms of business structures.   What wine or hospitality business are you creating?

What Are You Doing With Those Eco-Friendly Corks?

With all the fan fare these days about “boxed wines”  I love the fact that there are still great arguments to be made on behalf of the cork.    The Huffington Post hosts author Jennifer Grayson, founding editor of theredwhiteandgreen.com. Ms. Grayson, an avid environmentalist has written a great article on the eco-friendliness of corks and why you may want to recycle them.  For more information read: Eco Etiquette: Can I Recycle Wine Corks?

What’s Your Wine’s Pedigree?

The geographic location where your wine is grown, can often signal quality  or baby grapesadd pricing value to your customers.   Commercial advantage can be gained from a consumer’s appreciation of wines originating from a particular “viticultural area.”    The tagging of a wine from an “American Viticultural Area” or AVA can be an important factor to both the wine buyer and the wine seller.    While viticultural areas are not government endorsements of quality, to the consumer the AVA labeling can mean that the buyer can expect a higher quality of wine for the price.   To the seller, the AVA identification on the label can mean an important recognition of value, distinguishing a winemakers products from wines made in other areas.

An American Viticultural Area is the American system of identifying wines in a manner similar to the French “Appellation d’Origine Contrôlée (AOC) system.   A concept  created in 1978, an American Viticultural Area (AVA) is a designated wine grape growing region distinguishable by geographic boundaries as defined by the U.S. Department of Treasury Alcohol Tobacco Tax and Trade Bureau (TTB). The TTB defines these regions at the requests of wineries and other petitioners who use the AVA designation on the wine label to denote the geographic origin of the grapes used to produce a wine.   To establish a viticultural area, it must be determined by the TTB that the geographic area is different from the surrounding areas.   The TTB designates these region decisions based on an area’s unique characteristics.    These areas include distinctive soil type, topography, climate, elevation and historical evidence that the region’s boundaries are legitimate. The viticultural area as regulated can encompass more than one county or more than one state.   An established AVA indicates that at least 85% of the grapes used to make a wine must be grown in the specified area.

Pennsylvania’s American Viticultural Areas include the following five regions:

Central Delaware Valley (NJ, PA)

Cumberland Valley (PA, MD)

Lake Erie (PA, OH, NY)

Lancaster Valley (PA)

Lehigh Valley (PA)

The next time you’re having a locally produced wine, check out its pedigree and find out whether you’re enjoying a Pennsylvania “AVA ” wine.   If so, what’s your favorite?

Pennsylvania Wineries: Are You Getting Wine Lovers To Your Wine Or Your Wine To Your Wine Lovers?

When marketing your winery’s wine this harvest season, you may be creatively thinking of ways toPhiladelphia Festival 2
get wine lovers to your wine, or your wine to your wine lovers.   If your marketing efforts include the latter, you may wish to plan to host or participate in an event outside your winery’s usual business. That said, what are the requirements for a winery to participate in such an event?

In Pennsylvania, participating wineries in such events, should be properly licensed limited wineries in the Commonwealth of Pennsylvania.  Limited wineries are licensed by the Pennsylvania Liquor Control Board that may produce alcoholic ciders, wines and wine coolers (subject to certain exceptions).  Because the sale of alcohol without a license is illegal in Pennsylvania, limited winery event participants would need to obtain a Wine Exposition Permit. A limited winery licensee may apply for and obtain a Wine Exposition Permit from the Pennsylvania Liquor Control Board (PLCB) in order to participate in wine and food expositions off the licensed premises.

The permit may be issued to a licensed limited winery for expositions, not to exceed five consecutive days. The total number of days may not exceed 40 days in a calendar year.   The permit allows the holder to sell its alcoholic ciders and wine by the glass, bottle or case. Tasting samples of one fluid once or less may be provided for free or for sale.

The exposition may be held indoors or outdoors with the primary purpose of educating the attendees of the availability, nature and quality of the Pennsylvania product wines and alcoholic ciders in conjunction with suitable food displays, demonstrations and sales.   The exposition may include arts and crafts, musical activities, cultural and agricultural exhibits and similar activities. The permit fee is thirty dollars ($30.00) per day.

The next time you’re looking for ways to get your wine to your wine lovers, start with a Wine Exposition Permit and get your wine on!!

Does Drinking Red Wine Have A Protective Effect for Women With Breast Cancer?

healthReporting for Reuters Health News, author Michelle Rizzo wrote a “must read” article on a study of how women with breast cancer are being aided in their radiation treatments by consuming red wine. The article discusses the findings on how drinking red wine can prevent radiation induced toxicity. You may find the article an interesting read on the the numerous therapeutic benefits of red wine consumption for women with breast cancer. Read the full article here: Wine May Curb Toxic Effects of Radiation

So Who’s In Control of Pennsylvania’s Alcohol Beverage Industry?

Have you ever been curious as to why all the liquor stores in Pennsylvania are stated owned and20090730_plcb2logo_190x190 operated?  Have you ever wondered why Pennsylvania is routinely referred to as a “control state?”  You may be surprised to learn that Pennsylvania’s alcohol and beverage industry is run by the Pennsylvania Liquor Control Board (PLCB).

The PLCB is an administrative board consisting of three members each appointed by the Governor of Pennsylvania with advice and consent of two-thirds of the Senate.   The three PLCB members are Chairman Patrick J. Stapleton III, Thomas F. Goldsmith, and Robert S. Marcus.

The PLCB’s acts as both participant and regulator in Pennsylvania’s alcohol and beverage industry. In the beer industry, PLCB acts as regulator only.   As a “control” state, Pennsylvania restricts private retail ownership of distribution outlets in the state.   The PLCB acts as wholesaler, purchasing liquor from manufacturers.   The PLCB then sells liquor to its liquor licensees who in turn sell to the public for on-premise consumption.    As retailer, PLCB sells to the consumer via its state store system for off premise consumption.   These stores are known as “Wine and Spirit” stores. The PLCB is one of the largest purchasers of wine and spirits in the United States.  Sales at state operated Wine and Spirit stores reached a record 1.84 Billion in fiscal year 2008-2009.

Enforcement of Pennsylvania’s liquor laws is handled by the Pennsylvania State Police Bureau of Liquor Control Enforcement (BLCE).   Today the PLCB operates over 600 stores.  The PLCB issues and renews approximately 21,000 licenses annually.

Licensing by the PLCB is based on a quota system.  The PLCB limits the number of liquor licenses based on population.   The license application process is governed by the Liquor Code and Board Regulations.

So who’s in control of the Commonwealth’s liquor industry?   The Pennsylvania Liquor Control Board that’s who!!

Pennsylvania’s Brandywine Wine Trail: A Winery Lover’s Labor Day!

Labor Day weekend’s road trip found us on Pennsylvania’s Brandywine Wine Trail.  There are several wineries on the Brandywine Wine Trail.  Headed down the trail in the rolling hills of Chester County we had a truly special time at the “Summer Under the Stars Jazz Festival” at Chaddsford Winery.  We arrived just in time to catch the lively sounds of The Budesa Brothers jazz band. You could readily sense the warm camarderie of the Chaddsford Winery patrons as they happily tapped their feet, mingled about and experienced the wonderful tastings with catered cheeses, salads and meats.   Despite the fact that proprietors Eric and Lee Miller were on vacation, the event was left in capable hands with Winery Manager Gregory Kuhn at the helm.  An amicable guy, Gregory moved about with hospitality and winery staff in tow, all of whom under his leadership were moving about tending to the needs of the winery patrons.

The very charming tasting room was spacious, elegant and impressively filled with Chaddsford Winery’s award winning wines.  We were warmly greeted by alum Nicole Matregano (a graduate ofIMG_0103 Temple University’s Hospitality School) and festival worker Mary Croak. Nicole and Mary guided us to our wine selection, the Chaddsford’s 2008 Proprietors Reserve.  A very nice blend of Vidal Blanc, Seyval Blanc and Vignoles, the Proprietors Reserve paired wonderfully with our three cheese plate of pepper jack, white cheddar and blue cheese. A straw colored zesty citrus wine with hints of lemon, the Proprietors Reserve nicely complimented our cheese plate and thinly sliced roast beef.

Founded in 1982, and housed in a 17th Century Colonial Barn, the Chaddsford Winery sits in the midst of a very beautiful country setting full of distinct charm.   It is the oldest and largest of the wineries on the Brandywine Wine Trail.  On the 30 acre estate vineyard, Winemaker Eric Miller has produced award winning wines.  We took note of the fact that the winery is winner of eight gold medals and three silver medals in the 2009 PWA Pennsylvania Wine Competition.   Chaddsford Winery holds multiple awards in international wine competitions as well.

Winery lovers may find it a real treat this harvest season to experience the good food, good wine and good company should you make a stop at Chaddsford Winery on the Brandywine Wine Trail.

How Exactly Did Grape Growers Save A Winery?

The Trenton Times has a valuable and interesting article in yesterday’s paper  discussing how grape growers banded together to save New Jersey’s Unionville Vineyards.  As the article states, what looked like the beginning of the end for Unionville Vineyards,  turned out to have a happy ending as grape growers pulled together to save the winery.   For more information read Grape Growers Save Winery.

Who Said It Was Fun Uncorking Pennsylvania’s Wine Trails?

Was that you who asked was it fun to uncork a Pennsylvania Wine Trail?  The answer is “You Betcha!”  Pennsylvania is home to 11 wine trails.  Wine Trails typically include several wineries and vineyards located in close geographic proximity to each other.   The Bucks County Wine Trail includes eight wineries.  For our family weekend road trip we decided to “uncork” the Bucks County Wine Trail.   In our travels, we discovered New Hope Winery!

New Hope Winery located at 6123 Lower York Road (Rt. 202) in New Hope, PA.    Upon our arrival, we  were met by the warm smiles of husband and wife  owners Sandra Price and Jerry Sauls. If you’re looking for good mood, good company, and good wine, this is the place to be.

New Hope Winery’s setting is a 17th century barn that is home to a gift shop filled with exquisiteIMG_0091 gifts that any worthy shopaholic would find hard to exit. Gourmet baskets and hard to find wine related items set the mood. A digital photo frame on the tasting bar reveals the upstairs loft area with sequential photos of a wonderfully decorated event room tucked away and reserved for private wine tastings with candlelight flickers in a rustic setting. The winery also digitally advertises its 175 person ballroom for those special celebratory and corporate events.

Complimentary tastings at New Hope Winery are hosted by tasting room staff person, Glenn Barnard. Let me tell you, looks can be very deceiving. While Glenn appears at first glance to be a young novice, don’t let the Justin Timberlake look alike fool you.  It was clear right away that Glenn possessed both credibility and wisdom as his knowledge of New Hope Wineries’ wines was nothing short of “on point.” I stated to Glenn that I preferred my red’s full bodied and dry. Right away, Glenn steered me to the Proprieter’s Red. It was a deep, dry, oak aged red with a smooth silky finish. Not a madly “in your face” wine, but just the exact presence to let you know the wine would never be tagged as “whimpy”. I was thinking to myself that the Properieter’s Red and a nice rib-eye steak would be a very nice pairing.

For the white selection, Glenn recommended New Hope Winery’s Pinot Gris, a light dry white wine produced from the vinifera grape Pinot Gris. We found it to be crisp, clean and refreshing. It was a perfect choice for a mildly hot and sunny day. Both wines were excellent selections.  When I looked over my shoulder, Glenn’s colleague Denny was well into a serious discussion with my family conversing on the pro’s and con’s of screwtops versus corks.

In addition to the wonderful selection of wines housed away in convenient bins, you’re free to roam about and experience wholesome camaraderie with Sandra and Jerry. Sandra and Jerry made the trip all so worthwhile. What a treat it was to meet this delightful couple. My heart was warmed watching them bring a smile to our faces and sharing their gift of great Pennsylvania Wines.

The next time your family and friends are looking to experience a fun-filled Saturday afternoon adventure, you may want to uncork Pennsylvania’s Bucks County Wine Trail. There you’ll find  New Hope Winery on the trail.  Have some fun indeed!