Our Innovint Recap: How to Improve Winery Operational Health
A few weeks ago, we shared how much we’ve been enjoying Innovint’s new YouTube webinar series on financial, operational, and cultural health in the wine industry.
If you haven’t seen it yet, we highly recommend checking it out:
In our previous post, we covered their insights on improving your winery’s financial health and how to keep your business steady, even when times get tough.
Now, we want to take a moment to discuss ways to improve winery operational health, which, as it turns out, has a big impact on your bottom line too.
Here are the key messages we took away from the webinar about how improving your winery’s day-to-day operations can lead to better financial results.
How would you rate your winery’s operational health?
The webinar starts with a survey Innovint did with over 450 people working in wineries of all sizes. They asked, “How would you rate your winery’s operational health?”
If you’re thinking your operations are in “good” or “excellent” shape, you’re not alone. The survey showed that 66% of winery owners believe their operations are in good or excellent health, while only 26% rated themselves as average.
This is great news, considering that many news and opinion pieces across industry media would suggest otherwise. Despite what you may be hearing, more than half of winery owners feel like they have a good handle on their winery operations.
This is a good indicator of the bottom line as well.
As shown from the survey responses, there is a strong correlation between operational health and financial health—they are intrinsically linked.
Which, as accountants, piques our interest greatly.
So, let’s dive deeper into what “operational health” means for a winery in the first place.
What does it mean to be “operationally healthy”?
Being operationally healthy isn’t just about cutting costs. It’s about working efficiently—getting the most out of your resources while maintaining quality.
Ryan Pennington from L’Ecole, for example, discusses the important of running a lean operation. L’Ecole produces around 50,000 cases and distributes to 49 states and 15 countries. He said, “We need to be efficient to keep our margins healthy.”
But operational health goes beyond just efficiency. Another panelist, Juan Muñoz-Oca, COO at Marchesi Antinori emphasized the importance of growth.
He shared, “Operational health isn’t only about reducing costs but also about growth. This could mean growth in volume and revenue but also in how you approach your business.” He explained that a healthy operation is resilient, with the flexibility to adapt to both nature's challenges and changing market demands.
Juan added, “A solid foundation is essential, but the plan has to be fluid. In the wine industry, you have to adjust to what Mother Nature gives you, but also to what the market is asking for. We need to be ready for the unexpected, like changes in consumer preferences.”
In essence, operational health means having both a solid foundation and the ability to adapt and grow. Whether it's responding to unexpected challenges or embracing opportunities, staying flexible is key to keeping your business on a healthy path.
This leads us to our next key point: planning in your winery.
How to plan ahead in your winery
With so many unpredictable factors in the wine industry, how should you approach planning?
According to Juan and Ryan, the key is to have a solid foundation but keep the plan flexible enough to adapt when necessary.
Juan explained, “I feel like the foundation has to be solid, but the plan itself needs to be a little more flexible. The grapes we’re growing this summer will become wine at the end of the year, but that wine won’t hit the market until much later. It’s important to have structure and planning that account for that timeline.”
Planning helps set the pace of your business, and having a clear vision—your “North Star”—helps guide the daily decisions. Juan admitted that early in his career, he didn’t pay much attention to mission statements or visions. Now, he understands how a clear direction helps answer the everyday questions that come up in running a winery.
Having a strong plan also gives you the flexibility to adjust. “As farmers, we have to be good planners,” Juan added. “But the real challenge is finding the balance between sticking to the plan and knowing when to adjust.”
Ryan agreed, pointing out that having a plan gives you the flexibility to adapt.
Of course, the size of your operation affects how much flexibility you have—larger organizations are harder to move, like steering an aircraft carrier versus a small boat.
But just having the mindset of wanting to be flexible is the first step toward creating a healthy planning cycle.
“I love the idea that planning anchors you,” Ryan said. “It gives you context so you know where you’re headed, and that allows you to be smarter when it comes to being flexible and taking shortcuts when needed.”
How do you document and communicate your plan?
When it comes to documenting and communicating your future plans, one approach mentioned is to review your yearly plan every winter.
Ask yourself key questions like:
How many wines did we plan to make?
What did Mother Nature give us?
Did we hit our target production, or did we need to adjust?
These conversations set the stage for the next season and help ensure your plan aligns with the current market conditions.
It’s also smart to revisit your plan quarterly. Juan explained, “These quarterly check-ins help us stay smart about what’s happening this year and what to expect in the next few years.”
This allows you to stay flexible and adjust to changes as needed.
Long-term thinking is essential, too. “We think about the current year, the next three, five, and even ten years ahead. We also consider future generations,” Juan noted. While long-term planning might seem unusual, especially in the U.S., it’s crucial for a winery with a long-term vision.
Ryan also emphasized the importance of using data to guide decision-making.
““Instead of just aiming to sell more than last year, take a strategic, data-driven approach to planning. Understand the market, look at what competitors are doing, and identify your winery’s strengths and weaknesses.” ”
This proactive approach helps ensure your business isn’t just reacting to the past but is positioned for future success.
As Ryan put it, “It sometimes feels like we’re building the plane while flying it, but hopefully, we’re building a better plane each time we take off.”
How an ERP system can improve your winery’s operational health
Another big takeaway from the webinar was how specific projects, like implementing an ERP (Enterprise Resource Planning) system, can greatly improve a winery’s operations.
Both Ryan and Juan pointed to ERP systems as the "crux" of operational health.
Ryan shared that migrating to Microsoft Business Central has completely changed the way they analyze and understand their business. With everything centralized—sales, shipments, inventory—they now have a clearer, real-time view of their operations.
An ERP system connects your winery’s data across departments, eliminating the “silos” that often lead to inefficiencies. Ryan pointed out that before they implemented their ERP, they were making decisions based solely on shipment data. Now, by combining shipment and depletion data, they have a much more complete picture of how their winery is performing.
This kind of visibility allows you to make smarter, quicker decisions.
“It’s not just about tracking data—it’s about using that data to plan effectively for the future,” Ryan explained.
Having all the necessary information in one place means you’re no longer guessing—you know exactly how efficient your operation is.
Does this matter for small wineries?
Since we work with several small wineries, we thought this point was equally important: ERP systems aren’t just for large wineries—they can benefit smaller operations, too.
No matter the size of your team or business, having all your data in one place helps you run a more efficient, healthier business. Tracking every step of the process, from pruning the vines to selling your wine, gives you a clearer sense of how efficiently your winery is operating.
Without measurable data, it’s hard to know where improvements can be made.
Juan explained it clearly:
““I have to say, ERP and the software that supports your operations, the data gathering and analyzing capabilities that they give us are probably foundational to having a healthy organization. I wouldn’t be able to do what we do better every day if I wasn’t able to measure the results.
And that goes from pruning and how much we spend per acre or how long it takes us to do an acre in the vineyard, all the way to the warehouses we use to distribute our wine on the East Coast and West Coast. If we don’t have data we can analyze and benchmark, it would be impossible for us to be an efficient and healthy organization.””
Streamlined tools, like an ERP system and accounting software, help you track everything and allow you to identify inefficiencies, reduce costs, and stay competitive.
“To sum it up, you’ll never drive growth and operational success without being data-driven,” Ryan emphasized.
This is where tools like an ERP system and your accounting software can truly make a difference.
What are some of the biggest operational mistakes you can Make?
One of the most common mistakes in the wine industry is getting stuck in old ways of doing things.
Juan pointed out that a major challenge he’s seen—and even experienced himself—is the tendency to isolate the wine industry and assume it's completely different from other businesses.
“For a long time, I told myself that wine was unique because of its cadence, the planning process, and all the nuances of the market. But the truth is, there’s a lot we can learn from other industries,” he explained.
This narrow view can limit growth and prevent wineries from adopting best practices. By looking at how other industries, especially related ones like manufacturing and farming, manage their operations, wineries can find valuable insights to improve efficiency. Juan shared how he’s now paying more attention to what top-performing companies in other sectors do and figuring out how to apply those lessons to winemaking. "There’s a whole world out there, and it’s a missed opportunity if we don’t learn from it," he said.
Another big mistake Juan mentioned is sticking to tradition simply because "that’s the way it’s always been done."
In family-run wineries, this can be particularly challenging. He noted that following the same processes generation after generation can prevent innovation. “If we don’t allow ourselves to see our day-to-day through a different lens, we’ll never learn how to do it better,” he emphasized.
Ryan echoed this sentiment, adding that complacency is another risk. “Sometimes people assume their tasting room will always be busy, their wine club will keep growing, or their distributors will always sell more wine than last year,” he said. But relying on past success can blind you to potential problems.
In an industry as unpredictable as wine, it’s crucial to keep looking ahead and preparing for challenges, whether they come from the vineyard or the marketplace.
The key takeaway? Don’t let tradition or past success keep you from evolving.
The wine industry is constantly changing, and staying flexible, open to learning, and willing to adapt is essential for long-term operational health.
How can you measure operational success?
Measuring operational success can be tricky, especially in the wine industry, where so many factors are at play.
But it’s essential to have a solid approach to tracking progress and identifying areas for improvement.
Ryan and Juan both stressed the importance of using data and benchmarking to gauge how well your operations are performing, which is something we use here at NorthWest Wine Accounting as well.
Ryan shared that a big part of their process involves looking ahead—planning for supply, demand, product mix, and pricing years into the future. But on a more immediate level, they rely heavily on benchmarking.
“I’m fortunate to have a network of colleagues who share data confidentially, and that’s incredibly valuable for benchmarking,” Ryan explained. By comparing data with other wineries, you can see how your operations stack up and identify areas for improvement.
Juan added that another key to measuring success is looking at your data and finding actionable insights.
“For example, how many times do you touch the wine from grape to bottle? Is that too many times?”
Each touch has a cost—not just financial, but also in terms of time and resources.
Reducing unnecessary steps can free up your team to focus on higher-value tasks. By tracking these touches and benchmarking them year after year, you can continuously improve your process.
In short, measuring operational success isn’t just about tracking numbers. It’s about using that data to make smarter decisions, benchmarking against others in the industry, and always looking for ways to improve efficiency.
When it comes to operational health, you’re never really “done”
Last but not least, one final message we took away from the webinar was that operational health is something you’re always working on. You’re never at 100%.
It’s not a box you can check off and be done with—there’s always something new to learn or improve.
As a winery operator, you’re constantly getting feedback, learning from your own experiences, and paying attention to what others are doing in the industry. It’s not just about growing in size or revenue. It’s also about internal growth—finding better ways to run things, shifting your mindset, and staying open to change.
A common challenge, especially for family-run wineries, is the habit of doing things the way they’ve always been done. Bringing in fresh ideas or new perspectives can make a big difference, helping you see your operation in a new light and spot areas for improvement.
It’s important to stay flexible and keep learning. The wine industry has a long production cycle, but the market can change quickly. We’ve all seen how fast things can shift over the past few years. This means you need to stay nimble and be ready to adapt, balancing the slow process of winemaking with the fast pace of the marketplace.
By always being open to learning and adjusting, you can keep your winery healthy and ready for whatever comes next.
Check out Innovint’s webinar on operational health
We hope you’ve found this recap helpful.
As we’ve mentioned before, we highly recommend watching the full webinar for all the insights and information that we couldn’t fit into a single blog post.
And if you haven’t yet, check out our previous post on Financial Health, there are a lot of good lessons to take out of that hour as well.
If you have any questions about your winery’s operational or financial health, planning, benchmarking, or anything else we’ve discussed, feel free to reach out.
You can get in touch with us by heading over to our contact page here.
Until next time!
