Terrabella Wineries acquires wine estate in West Kelowna, British Columbia
Terrabella Wineries, a British Columbia-based group that is involved in acquiring and establishing wineries to centralize production, management and distribution, has acquired an 18 acre vineyard property in West Kelowna, British Columbia.
The purchase is the second for the group, following the acquisition of Perseus winery and vineyard of Penticton in July 2011.
Located at 3189 Boucherie Road in West Kelowna, the sun-soaked vineyard is well-known for neighboring British Columbia's most often visited wineries.
Terrabella plans to build a new 15,000ft² wine production facility and a 3,000ft² tasting room at the vineyard property, where the new winery will be named Helios.
According to Terrabella Wineries manager Rob Ingram, the small and medium sized wineries in British Columbia are faced with a daunting task of finding enough finances and gaining profits from the business.
"There is a significant outlay of capital required in a winery's formative years, and success in the industry requires growth in inventory levels. This combined with a winery's high percentage of fixed costs, makes it difficult for many of B.C.'s existing wineries," Ingram added.
"We recognize that aggressive marketing, as well as access to financing, and broad access to sales channels are critical to a winery's success. The wine industry is one of the few industries that grew during the recession and is predicted to continue its growth in the years to come."