Launching or expanding a wine brand doesn’t always mean building your own winery or investing in expensive winemaking equipment. For many brand owners, wine contract production—often referred to as a custom crush arrangement—offers a practical, cost‑effective solution to bring wines to market.
What Is a Custom Crush Arrangement?
A custom crush arrangement allows a wine brand owner to partner with an established, licensed winery to produce wine under the brand owner’s label. The winery may handle production activities such as crushing grapes, fermentation, aging, and bottling, while the brand owner focuses on sales, marketing, and brand development.
This structure is popular among:
- Entrepreneurs and start‑up wine brands looking to test the market;
- Vineyards interested in producing branded wines without operating their own winery; and
- Established brands seeking additional production capacity or specialized winemaking techniques.
Benefits of Wine Contract Production
There are several advantages to using a custom crush facility:
- Lower Capital Investment: Avoids the need for purchasing or maintaining winemaking equipment and facilities.
- Expertise and Infrastructure: Leverages the knowledge of experienced winemakers and access to established production systems.
- Scalability: Provides flexibility to produce small batches for market testing or larger volumes for broader distribution.
- Faster Time to Market: Allows brand owners to focus on sales and marketing rather than operational setup.
Key Contract Considerations
A custom crush agreement should be clearly documented in writing. Important provisions often include:
- Production scope and timelines (from grape delivery to bottling);
- Quality standards and winemaking specifications;
- Ownership of grapes, wine in process, and finished goods;
- Intellectual property rights for proprietary blends, processes, and branding;
- Pricing, payment schedules, and cost adjustments;
- Compliance with federal (TTB) and state licensing requirements; and
- Liability, insurance, and indemnification clauses.
A well‑drafted custom crush agreement protects both the brand owner and the winery, ensuring mutual understanding and reducing the risk of disputes. A wine contract production attorney can help structure these agreements to meet regulatory and business needs.
How Lindsey Zahn P.C. Can Help
At Lindsey Zahn P.C., we understand the complex legal and regulatory issues involved in wine contract production and custom crush arrangements. Our firm is experienced in reviewing and drafting custom crush contracts and wine contract production agreements. Some of our services include:
- Draft and negotiate custom crush agreements tailored to your business model;
- Review existing agreements for risk areas and regulatory compliance;
- Advise on federal (TTB) and state licensing requirements; and
- Provide strategies to structure long‑term, successful production relationships.
If you are considering a custom crush arrangement—or want to ensure your current contract protects your business—contact us today to schedule an initial consultation. We’ll guide you through every step of the process and help you launch or grow your wine brand with confidence.
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