Niagara is well known for its fine selection of wines, which many growers have spent their lives trying to perfect. Not only is the wine industry a large part of what fuels tourism in the region, it’s also a large contributor to the local economy.
Overview of the Wine Industry in Niagara
Wine grapes, made up mainly of what are known as Vitis Vinifera grapes, became popular back in the early 90s, when farmers began to realize their high quality. Now, there are approximately 92 wineries currently located throughout the Niagara Region and consist of nearly 55% of the VQA market. Just recently, Foregin Affair Winery was sold to Corby Sprit and Wine Ltd. for $6.2 million. This constantly growing industry fuels a large part of both the Ontario and local Niagara economy. In 2016, the farm gate value of Ontario grapes exceeded $95 million and nearly 97% of grapes grown within the province of Ontario are used in the production of wine.
International Investment in Niagara Wineries
A large portion of the investment in the Niagara wine industry comes from international investment. From China to the United States, many international investors see the value of the constantly growing Niagara wine industry. Chinese businesses invested over $30 million dollars on purchasing wineries within the Niagara region. China does not have a large wine industry and many individuals in China will purchase expensive imported wines, such as a Niagara VQA as a status symbol. The desire for Niagara wines in the international market assists with fueling the region's wine industry and assists in boosting the investment that is placed on our wine industry.
Owning Vacant Land or Starting a Winery
If you have vacant land and are looking for a way to make a profit, consider renting out the vacant property. Many grape growers are constantly looking for vacant land to rent in order to increase their existing crop or to build a new crop. Wineries and growers looking for additional space may want to rent out your vacant land if they are at full capacity. Or, if you are passionate about the wine industry you may decide to begin your own winery. This can be a great start to a lifelong career. Establishing a new brand may be costly and time-consuming, so if owning a winery is your ideal lifelong goal, keep an eye open for potential listings.
Whether you’re looking for an investment property or looking to start a lifelong career in the wine industry, purchasing vacant land or an already established winery is bound to provide various benefits. Wine is a product that seems to always be in demand, making it a foolproof investment.
If you are in the market for a well-established winery that was recently listed for sale,click here. The Mike Weir Winery has recently been listed and a great investment for someone looking to create their own brand or possibly continue the great work this winery has produced.
