Why Wineries Should Own Their Tasting Rooms

I'm a firm believer in vertical integration as much as possible. Here's another example of why:

When Sal Cullari decided to hang up his academic regalia he planted a small vineyard at his home in 2000 and become a full-time winemaker. Still, he "never pictured it lasting for 20 years." But last it did, and over time what started as a hobby he built a loyal following with Cullari Vineyard & Winery.

He had, he says, the perfect location – right in downtown Hershey, Pa., at 1251 E. Chocolate Ave. He got customers from Hersheypark, the giant amusement complex; the Giant Center, and a lot of customers who stopped by every day for a bottle or two of his wine.

Then, in 2023, the landlord decided to bring in an ice cream shop. And now Cullari is looking to sell his business – the winemaking equipment and labels. The vineyard and houses he owns on a 25-cre lot four miles from the tasting room aren't up for sale, but he'll entertain offers, separately.

Why not simply find another spot in town? He could, he says, but landlords all want a five or seven year lease, and, at 74, "honestly, I'm just too old to sign a lease like that."

It's easy to Monday Morning quarterback, of course, but if he owned he retail property, he wouldn't needed to close down. Or, if he did decide to close the shop be might be the landlord renting to the ice cream shop.

In the meantime, he's collected more than 20 years worth of rent receipts, and has probably paid much more in rent than he would have in mortgage payments and associated expenses.