Types of Wine Producers: Grower, Co-operative, Estate and Urban Winery

When it comes to the type of wine producers, you might come across terms like grower, merchants, urban winery, co-operatives, estate and even urban winery, a rising trend.

While these terms do not hold legal significance and rarely appear on labels, they play a crucial role in shaping the wines we enjoy. In this blog post, we will explore the differences among these types of producers, understand how they work differently, and how they impact the quality of the wines.

Grower

A “grower” in the wine world is essentially someone who grows the grapes for winemaking. This is often a family affair, where generations pour their heart and soul into the vineyards. They oversee every aspect of grape cultivation, from soil management to harvesting. Growers have an intimate understanding of their lands and vines, their commitment to quality and approaches to viticulture will make significant impacts on the wines being produced.

Merchants (Négociants)

Merchants, also known as “négociants,” have a slightly different approach. Instead of growing their grapes, they purchase grapes or even pre-made wine from various sources. This allows them to curate a diverse range of wines under their label. While they might not have hands-on involvement in grape growing, experienced merchants often work closely with growers and take the lead on the winemaking process from fermentation to blending and ageing, to achieve a specific flavour profile that represents their brand.

Urban Winery: where does it lie?

Urban wineries have become a rising trend in the past decade, bringing wine production to the heart of bustling cities rather than traditional vineyards. Despite their location, they operate as merchants by buying grapes from nearby regions and vinifying them on-site. 

In addition to making wines, urban wineries offer opportunities for urban dwellers to visit, taste, and learn about the winemaking process. Instead of travelling miles, people can visit and taste in their city or even neighbourhood. While it brings dynamic to the city’s wine scene, offering new and often exciting wines to try, it also serve as a community space for people with similar interest (wine!), an event venue and even a tourist spot. Saint Olives in Lyon, Sabelli-Frisch in Los Angelas, Renegade Urban Winery in London, The Red Hook Winery from New York, and Urban Wineries in Sydney are just a few examples of this growing movement.

Saint Olives Urban Winery in Lyon

Custom Crush Facilities & Virtual Winemakers

A more modern evolution in wine production comes with custom crush facilities and virtual winemakers, mostly found in North America, especially in California. These models open the door for individuals or small brands to create their own wines without owning vineyards or investing in expensive winemaking infrastructure.

Custom Crush Facilities

These are shared winemaking spaces that provide access to professional-grade equipment (from pressing to bottling facilities), cellar space, and often technical expertise. Independent winemakers, small labels, or even aspiring enthusiasts can “rent” the facility to produce their wine. This democratizes winemaking, lowering the barriers to entry while ensuring professional standards. For some growers who don’t want to invest in a winery, a custom crush facility allows them to turn grapes into bottled wine.

Virtual Winemakers

Sometimes called virtual wineries, these producers don’t necessarily own a vineyard or a winery. Instead, they purchase grapes and contract production at a custom crush facility, focusing their efforts on brand-building, storytelling, and sales. This model has become particularly popular in markets like California and Australia, where wine lovers want to transition into producing their label without heavy upfront costs.

This approach blends creativity and accessibility. Virtual winemakers can choose grapes from different regions, work with experienced consultants, and design wines that match their preferred style. However, as with négociants, the quality depends largely on the grapes sourced and the skill of the winemaker they partner with.

Co-operatives

Co-operatives, or co-ops, are associations of grape growers and winemakers who pool their resources to produce wine collectively. This approach allows smaller producers to access shared facilities and equipment, lowering production costs. While co-ops might not offer the same level of individual attention as boutique producers, they can share the collective experience and resources of their members, resulting in wines that are often affordable without compromising on quality.

Estate

An estate winery represents a holistic approach to winemaking, where the entire process, from grape cultivation to bottling, takes place on the same property. This tight control over every step of production allows estate wineries to monitor and manage quality. They are deeply connected to their land (some are even up to generations!), having a strong understanding of their terroir – the unique combination of soil, climate, and other environmental factors that influence the grapes’ character. This approach often results in wines that authentically convey the essence of their origin.

Oliver’s Taranga has been grower for 5 generations and now being an “estate”, making their own wine too!

Is estate wine always better than other types of producers?

The answer is NO.
The quality of wine is influenced by multiple factors, and while the producer type can certainly have an impact, it is not the sole determining factor. Grape quality, winemaking decisions, and the growing season all play important roles in producing the final product. Additionally, each producer type has its unique strengths that contribute to the variety of wines available to enthusiasts.

This Blog post is written by Sharon Wong
Consumer Sales and Marketing Manager of Wanderlust Wine 

Sharon is the the driving force behind our website, wine club, marketing activities, and Wanderlust Wine events. 

Next in our wine basics series:  Different Styles of Champagne