Since the 1970s, America’s reputation as a wine-producing country has done nothing but grow. The good ol’ U.S. of A is now on the level of France and Italy, countries that have been growing and producing wine for millennia. Who can hear the words “Napa Valley” and not think of wine?
Over the last four decades, wine consumption in the U.S. has grown exponentially. Few years during that time have seen a year-over-year decrease in consumption. So what does this mean for the self storage industry? There’s a growing market for wine storage. As wine consumption grows and the prices for premium and super-premium wines increase, buyers of wine are requiring proper storage.
For the average wine collector, installing a home wine cellar is rather cost-prohibitive. High-quality home wine cellars with smaller to medium capacity range from $1,500 to over $5,000. Home units built for wine storage may be an option, but they tend to be low on capacity and security.
The solution? Wine aficionados are turning to storage facilities with temperature-controlled units to store wine, which means you need to position your self storage facility to succeed.
Climate Control Is a Must
The proper storage of wine makes a temperature-controlled environment a non-negotiable requirement. Wine of any quality will go bad when exposed to extreme temperatures. Higher priced bottles, the kind your target market for this service usually purchases and adds to their collection, are even more sensitive.
According to an article at WineSpectator.com, “Temperatures higher than 70˚F will age a wine more quickly than is usually desirable.” The article also says that exposure to higher temperatures can “cook” the wine, leading to less aroma and a dulled taste, something wine connoisseurs definitely are looking to avoid.
While there are expensive, high-quality white wines, it’s red wines that are usually the more sought-after by collectors and aficionados. A temperature closer to 55˚F is optimal for most vintages, both white and red. Chilling white wines is best done several hours to several days before serving, though overchilling can damage white wine. Red wines are best kept at temperature close to the slight chill of a crisp autumn day.
Location, Location, Location
This market opportunity does come with one caveat: Your location has to be in an area with the right demand. Your facility must be near the right target market and surrounded with the most favorable prospects for climate-controlled wine storage. A facility located in an area near affluent people who collect wine is perfectly situated to take advantage of this marketing opportunity. So what does that look like?
There are couple of options. First is a suburban location near higher-priced housing. Newer residential developments with higher-priced homes are going to be where you want to be if offering this unique kind of storage facility. Unless a homeowner has an extensively large collection, most homeowners aren’t considering a built-in wine cellar or storage area to keep their wine. Wine aficionados who have 20 to 100+ bottles they want to store make the perfect customers for your facility, though.
Another location option for a facility offering wine storage is near condominium development. Areas of condo development near water, tourist attractions, or in population-dense urban settings make another optimal setting for a wine storage facility. Areas with two or more of these qualities are even better.
The reasons? Prices for the real estate are going to attract the more affluent buyers, and condos also have limited storage space. Additionally, many condo owners rent out their homes at least part of the time. A smaller in-home wine fridge/unit to store bottles they own would lack the necessary security. Co-op apartment dwellers are another target for out-of-home wine storage for many of the same reasons, but it may a bit tougher to pin down areas where there high numbers of them.
Amenities and Events
If you’re going to offer wine storage at your facility, there are some amenities you’ll want to have. Drive-up access helps your customers pick up one or several bottles quickly. 24-hour access won’t limit your clients’ festivities. Security should be at a premium, too, as wine collectors have invested a large sum in their collections. The décor and atmosphere should be tasteful and fit with the aesthetics of the typical wine collector, too.
Space for holding events geared toward wine appreciation would work to build your name in the community, as well as work to market to potential clients. Other than private collectors, restaurants, gourmet stores, and even wine stores are candidates for future customers. Holding these events are great ways to get word out about your facility and allow you network with and learn about potential clients as well.
When your facility offers wine storage, you open yourself up to unique and profitable opportunities. And your opportunity for offering a successful facet to your operation could be closer than you think.
