Good Practice - Project
Andersen Winery
Developing a Danish winery from being a hobby to becoming a successful business venture.
General information
RDP Priority
- P6. Social inclusion and local development
RDP Focus Area
- 6B: Local development
RDP Measure
- M19: LEADER/CLLD
Beneficiary type
- Small-Micro Enterprise
Summary
Andersen Winery is a local business located in Knebel, Denmark. It started in 2015 with a collaboration between three friends whose aim was to create a high-end sparkling wine made from Denmark’s plentiful supply of apples and berries. CAP investment support was used to upgrade the winery's production capacity from approximately 50 000 bottles to 250 000 - 300 000 bottles per year to continue growing the business and to keep up with demand.
Results
- The fully automated production allowed for a reduction in production costs of around EUR 65 422 to EUR 87 229 per year.
- An increase in production volume of 150 000 bottles per year was achieved.
- An increase in gross value added of nearly EUR 1 million in the first year after project implementation was accomplished.
- Five full-time positions were created.
Promoter
Andersen Winery Aps
Funding
Total budget: 131 000 (EUR)
RDP support: 49 600 (EUR)
Private/own: 81 400 (EUR)
Ressources
Documents
Good Practice Report - Andersen Winery
(PDF – 1.48 Mo)
Context
Andersen Winery is a local winery in Knebel, Denmark, that was founded by three friends in 2015. Winemaker Mads Groom Andersen, food specialist Frantz Maurice Scott Lundby and entrepreneur Morten Rinder Stengaard had the business idea to produce a high-end sparkling wine made from Denmark’s plentiful supply of apples and berries.
An important aspect of the company’s mission is to inspire customers to pair their sparkling wines with food. Typically, champagne is served before the meal itself - to open the senses and prepare the taste buds. While the sparkling wines from Andersen Winery can be served as an aperitif in the same way as champagne, the three business partners were keen on creating a high-end product that would be particularly suitable for being enjoyed with food too.
Since its beginning in 2015, the business has received several grants from the local LEADER LAG Djursland to professionalise the production line and to help the venture grow from a hobby into a successful business.
In 2020, five years after start-up and in view of an increasing demand for the product, the production capacity at Andersen Winery needed to increase further (approximately 50 000 bottles per year).
Objectives
Aims of this LEADER project were to upgrade the winery's production capacity to support the company’s growth ambitions and to exploit the existing market potential. A further aim was to promote the sparkling wine from fruit and berries as a world-class product.
Activities
The main focus of the project was on replacing the manual production processes with fully automated equipment. The project featured the following activities:
- Replacing the manual filling process (bottling) with a fully automatic ‘tirage monobloc’ (bottle filler). Based on the previous manual process, three trained persons could bottle approximately 450 bottles per hour, corresponding to a production price per bottle of approximately EUR 0.13. With the new fully automatic bottle filling process, the output could be quadrupled to approximately 1 800 bottles per hour and thus achieve a production cost of EUR 0.03 per bottle, thereby saving EUR 0.10 per bottle.
- Automating the washing, labelling and packing processes. This reduced the previous resource consumption for labelling and packing to the extent that all three processes can now be done with the resources that were hitherto required for just washing the bottles. The manual work of two persons packing 120 bottles per hour, corresponding to a production cost of EUR 0.34 per bottle, was now saved through the investment in a 'bottle washer', an 'alucap’ and a labelling ‘monobloc'.
- Expanding the existing fully automatic riddling plant with additional capacity by investing in a 'riddling machine extension'.
Main results
The investments enabled the winery to grow from a small niche business of three staff to a professional business venture with more than eight full time employees. Andersen Winery is now a local household name and renowned in international circles, having won several awards for their sparkling wines.
- The company sells mainly to high-end restaurants, wine shops and directly to customers online via the company website. There is also a small shop attached to the production facility.
- The project achieved a reduction in production costs of around EUR 65 422 to EUR 87 229 per year, equivalent to EUR 0.44 per bottle on a capacity of 150 000 to -200 000 bottles.
- An increase in production volume of 150 000 bottles per year was gained.
- An increase in gross value added of nearly EUR 1 million in the first year after project implementation was accomplished.
- Five full-time positions were created.
Key lessons
- LAG Djursland played an important role throughout the making of Andersen Winery, being among the very first to invest in the project. The continued support of the LAG over the years helped the business to build confidence and achieve greater results much more quickly than would otherwise have been possible. It also contributed to putting Andersen Winery “on the map” of high-end local food production.
- Dealing with all the European funding rules was perceived as straightforward and easy, provided advice and assistance is made available by the LAG and adhered to from the beginning. Keeping the project on track is also recommended.
- Adjusting to fast growth rates in sales can be a challenge in viticulture due to the long duration of the production cycle. Winegrowers need to think ahead and invariably will need to take certain risks.
Andersen Winery Aps