Although Southern Oregon wine production is a fraction of that in the

Although Southern Oregon wine production is a fraction of that in the Willamette Valley, growth and stability of existing wineries bodes well for the future, and new investment is narrowing the gap.

"It's mainly from people out of state looking to get into the wine industry, and they are choosing Southern Oregon for their new enterprise; we're starting to see significant investments of $5 (million) to $10 million," Olmo said.

With those substantial investments come estate properties of 100 acres where vineyards are planted, wineries are built and equipment is installed.

"A decade ago, people moved here and began in the garages, looking to grow a very small business," she said. "Now we're starting to see those business become a financial success, encouraging additional investment. They are aiding and attracting new businesses with larger visions and larger initial capital input."

Beyond that, Olmo said, those newcomers often arrive with more than passing business skills.

"We have a new neighbor who is building a winery who has lots of experience with international exports," she said. "He's helping us understand where there is an opportunity for our products not only outside of Oregon, but outside the U.S. For the majority of us in Oregon, those things weren't part of our original business plans."

With growth, however, come obstacles as competition from other wine regions intensifies. Small, family wineries can expect greater difficulty navigating through the wholesale tier in many states.

"The Willamette Valley pinot noir is well known, but particularly for Southern Oregon, there is still lot of work to be done on awareness and visibility," Miller said.

Additionally, the surge of planting between 2005 and 2008 is coming to fruition. History suggests that grape growers and wineries have the most financial difficulties when there are too many grapes.

"Over-supply is always a present danger for the wine industry," Miller said. "It's easy to over-plant. When you get a surge in demand for a variety in the region, everyone plants — they don't pay attention to what others are planting. You have to know how to sell the volume and have a concrete and reasonable plan before you add capacity."
Par authenticlouisvuitto le lundi 18 juillet 2011

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