Two Rivers Winery + Vineyard

Two Rivers Winery + Chateau Grand Junction, CO

SLIFER SMITH & FRAMPTON C O M M E R C I A L + E N T R E P R E N E U R I A L R E A L E S TAT E Connecting Entrepreneurs through the Business of Real Estate

Presented by Mike Mercatoris 970.618.7092 mmercatoris@sliferrfv.com

About Two Rivers Winery + Chateau RGW Associates Inc. dba Two Rivers Winery and (TRW) is a family-owned boutique winery and event center located just west of Grand Junction, Colorado in the wine growing region of Mesa County. Producing, depending on inventory, approximately 11,000 cases of wine annually and with capacity of 17,000 cases.

The company’s goal since inception has been to produce superior Colorado wines at competitive prices. Additionally, TRW strives to offer exceptional customer service and a uniquely personal wine tasting experience for everyone who visits the winery.

“…as a result of its location and architecture, our property has become a destination winery.”

The winemaking process takes place on the 15-acre property that is recognized for its natural beauty, nestled conveniently between the two portals of the Colorado National Monument. The buildings on the property consist of a 13,000 SF chateau or event center, 3,574 SF winery, 4,034 SF barrel storage and bottling line, 3,605 SF residence, and various farm and cold storage facilities. Although quality grapes are produced on the property, over 160 tons are purchased from other growers.

TRW property also offers two tasting rooms, a chateau/event center capable of accommodating up to 200 people, and 10 guest rooms that afford upscale lodging with gracious hospitality in a French provincal setting. These facilities are open to private and public wine tastings and events such as weddings, winemakers’ dinners and corporate retreats. TRW is the only winery in the Grand

Valley that offers a country inn and guest rooms, and as a result of its location and architecture, our property has become a destination winery.

“…we continually receive the highest mark on social media travel sites like tripadvisor.com and yelp.com”

TRW specializes in selling high quality wine and event services. Revenue is derived from walk-in visitors, event customers, retail wine sales and its distribution to hundreds of restaurants and retail stores across Colorado, bolstering brand recognition. They also produce wine for another Colorado winery, and have a remote sales room in a local upscale restaurant.

TRW’s growth and success has been, and will continue to be, driven by the Company’s outstanding reputation for providing a proprietary offering of highquality wines sold at the winery and through its distributor. In addition, The Company’s on-site special events hosting services, wine tasting dialogue and winery tours round out Two Rivers’ unique experience where we continually receive the highest marks on social media travel sites like Trip Advisor and Yelp. While in recent years TRW no longer sends wines to international wine competitions, noteworthy is the fact that we have garnered 21 gold and double gold medals in competitions.

TRW’s structures were designed by owner, Robert Witham, who also was the developer of the project. It is an approved Planned Unit Development and RGW Associates, Inc. was formed as an S-Corporation in Texas. It has always been the plan to include an upscale restaurant on the property and the thoughtful overall design made accommodations for this possibility.

The Winery production

facilities

TRW was designed and built in 1999 and began operations in 2000. Our production has reached up to 14,000 cases and our current production is about 10,000 with a capacity of 17,000 cases. We have produced for other wineries and are currently in the 6th year of making around 900 cases a year for Pike’s Peak Winery in Colorado Springs. This past year we introduced an additional label, that we call a Salute to Our Warriors and approximates 1,700 cases. This is an effort to thank our veterans for their services and .75 per bottle is donated to veteran programs that are involved with rehabilitation through recreational activities. The image on the label is copyrighted and is further secured in that the wine is Two Rivers Wine whose name is trademarked.

The total property encompasses just over 15 acres and has seven structures in place all of which are used for winemaking activities, hosting events and renting sleeping units. Crush, fermentations, filtration and two sales rooms are housed in the winery. We have a second building that houses our barrels, etching program, library and bottling line. A third building is the event center, sleeping rooms, catering kitchen, offices, boardroom and bars. There is a structure that we call the long shed, which is a cold storage area and a storage area for farm equipment, a shop and glass. There is a separate pump house for irrigation. There is also a residence that will be sold with the project.

bottling customization We etch personalized bottles inhouse, which is a cost center and a revenue center.

It is used for marketing purposes and has become popular with real estate folks, as holiday gifts, with corporations particularly banks, and special occasions like the birth of a child or bridesmaid and groomsmen gifts.

cool storage There are two primary areas where we store the bottled wine in temperaturecontrolled areas. They are easy to access for tasting room activity, local distribution, loading out our distributor and inventory management.

equipment

laboratory

State of the art equipment is in place which allows for us to be totally selfsufficient. This equipment includes a crusher and destemmer, press, Bucher Vaslin Flavy FX crossflow filter, hopper and conveyer belt, grape bins, 17 stainless steel fermentation tanks, 2 chiller units, 2 forklifts, 2 tractors, mower, sprayer, spring tooth rake, Fimer automated bottling line, 2 trucks, van, Tahoe, various ladders, a pressure washer, air compressor and an etching machine. All are in good working condition.

We have an equipped laboratory where we can conduct many of the tests necessary to complete winemaking tasks and manipulations. We also use outside resources provided by the State Enologists and Viticulturists. We use ETS for certified testing on all our grapes and wine. The lab is also the office for our winemaker and is the hub of logistical activities and decisions.

The Vineyards acres Ten acres are planted with two different hybrids, Baco Noir, La Crescent, and Chardonnay. Initially we planted Chardonnay, Merlot and Cabernet Sauvignon. Six years ago, a housing development went in, to the east of our property along with an 8-foot vinyl fence, which impeded the air flow through and out of our vineyards (urban sprawl). Because of the wind patterns the air would flood back into our vineyards, so the hybrids were planted because they do better in the winter.

We also purchase grapes from other growers that we have a strong working relationship with. We make observations of the vineyards and make all our own harvest decisions through routine testing. Toward the end of the season, we apply bird netting just before harvest.

water + irrigation All our vines receive water from an underground installed drip irrigation system.

The water is channeled through a canal coming from the Gunnison River. Property owners are entitled to shares that run with the land. There is one share per acre, so we have 15 shares. We are the largest user on our ditch, but we are third in line for the water which goes into an irrigation pond. We take what we need and discharge what we will not use, back into the ditch, keeping the neighbors happy.

Should something happen with a water shut down we are tied into commercial water, but we have not needed to use it. This same water feeds our lawn and plant areas. Our shares are protected up stream, so if there is a shortage of water coming to us, we can make a call upstream. As mentioned, before we have a pump house, where the water goes through filtration and has zones with timers. We can control amounts of water because of the zones. Our soils are a sandy/loam and we drip 15 hours a week of water normally, but cut back a third, during variation.

management We have a full-time employee and one part-time employee who are skilled and oversee the management of the vineyards, under the supervision of our Winemaker. When there is activity that involves groups of people, such as pruning and harvest, the whole team will chip in. The two guys keep up with irrigation ensuring that our pond is clear of sediment, they will fix lines that rupture and manage weeds. The property is surrounded with deer fencing and from time to time repairs are needed as with the trellis. All our male employees are proficient with driving the forklifts and the tractors. They are crossed trained to assist when necessary, setting up events, hauling trash and stocking wine. They are good hands with cellar work during crush and snow removal in the wintertime.

purchasing grapes From inception as a winery, our intention was to purchase grapes from other growers in the valley who grow grapes but do not make wine. We have been with these same growers for almost 20 years. There have been a very few occasions that we have needed to go outside the state of Colorado as grapes were not available because of weather issues. When we do, if people ask where the grapes come from, we tell them the truth. We source the grapes from Prosser Washington.

This is the location where we secured our original root stock. We have strict adherence to labeling regulations.

We currently produce eight different wines, and we grow or purchase six varieties of grapes because we produce two blends. We process Cabernet Sauvignon, Merlot, Chardonnay, Riesling and Syrah. We have a Syrah/Cabernet blend and Rose’ that is a Riesling/Merlot blend plus a port wine that is from Cabernet Sauvignon grapes. Our Warrior Wines are the same wines with different labels.

The Chateau gazebo

breakfast

This structure sits on the edge of our large lawn and is the place of choice for outdoor weddings during the season. It is a part of our licensed premises and can be used by our guests from the tasting room and the chateau at their leisure.

We also hold numerous music venues in this structure during the year as well as receptions. It has wonderful views of the National Monument, a bar and a fireplace.

TRW has signage just outside the gate of the eastern portal, which brings lots for folks to the winery.

Our guests are served a wonderful breakfast, handmade and produced in house.

It is clearly one of the highlights for those people staying and many tell us it is the reason for their repeated business. The breakfast kitchen is just next to the breakfast room. There is also a beautiful outdoor sitting area when you can look down on the expansive vineyards. Guests can use the refrigerator and obtain ice. There are always two newspapers available and a television. The employees making the breakfast also serve as our housekeeping staff. They are well liked, and they are full of knowledge about our wine and things to do in the area. The average tenure of employees working full time is 14.5 years.

terrace This area is large and is used for an extension of the main event center or it can be used for small groups. It is open on two sides and has restrooms and a bar close by. During nicer weather it is a great reception area, overlooking the vineyards.

The Chateau

accommodations Our Chateau has ten nicely appointed sleeping rooms. These rooms are open to the general public and we require that they be rented as part of a package during events like weddings. Outside guests would not be able to sleep if a wedding party is celebrating. Often, we see an event like a celebration of life, in which case we simply let the folks staying in the rooms know in advance and they are satisfied, as these types of activities end in good time rather than late into the evening.

We often have day events as well, but guests are not disturbed by this. We have many repeat customers and great reviews on Trip Advisor from our guests.

The Chateau wine bars The event center has two wine bars that are a part of the overall winery premises. In fact, the entire center except for the upstairs guest rooms and breakfast area are a part of our premises. We can serve 175 people for a sit-down dinner and 200 through a buffet line. Large groups can convene for conferences or dinner. We require that guest’s for any event sign our contracts. They are required to make a deposit to hold their event and it not refundable 90 days out, unless we are able to book a similar event. These events vary significantly; from Weddings to Celebration of Lives. We have music venues, political gatherings, birthdays, Physician’s Graduations, holiday parties etc.

catering kitchen On the lower level is a full catering kitchen capable of prepping meals for 200 guests. It is licensed annually by the Health Department and has never experienced a deficiency. The equipment consists of an ice machine, commercial refrigerator and freezer, commercial dishwasher line, beverage storage area, two proofing ovens, preparation tables and glass racks. Catering using the prep kitchen must be licensed and they are required to clean-up after themselves.

The Chateau offices There are three functioning office areas within the event center. They currently are used by a receptionist in the front of the building, our Bookkeeper and our Operations Manager. During events, two of the offices are not in use which creates additional space.

av/equipment/tech Internally we own and have available tables, chairs and dishware, and Wi-Fi, all of which is available to clients to use as a part of their rental agreements. TRW has an event manager who is responsible for marketing events, contracting, organizing set-ups and take-downs. This person also interfaces with the clients and their agents such as, catering, florists, bakers, musicians and other vendors. We also supply dishware, glasses and utensils.

conference room There is a Conference room with 10 chairs around a single round table that can be used for a variety of purposes. We use it for staff meetings, for example. It is also used by clients who are seeking privacy.

wine club We have 150 or so wine club members. There is not a charge to join, but we send them 12 bottles a year and we provide for a discount when they purchase wine through-out the year. We also invite them to pick-up parties once a year and provide them with recipes and other swag.

distribution We use Republic National Distribution Company as our distributor. They are large and well known wine distributor.

premises We have provided a map showing our premises. All areas in red, including the green lawn areas outlined in red are our licensed premises, where wine is permitted to be sold by the glass or bottle and consumed. This includes the bottom floor of the Chateau.

The Chateau Residence Just stone’s throw from the Winery is the owner’s home. It is approximately 3,600 square feet and its style matches the architect of the project. There are three bedrooms, three and one-half baths, a three-car garage and two offices that are used by the owner for the business. It is an open plan and we have often thought about using it for a restaurant. If not that, it could fit in nicely as a rental house as an adjunct to the chateau sleeping rooms.

About Our People Brandon Witham |

winemaker

Brandon is our Winemaker, having successfully completed eight harvests. He has worked alongside Rob Hammelman, a master degreed oenologist, and receives consultation from a well-known winemaker, Jackie Thompson. Previously, Brandon was the Manager of Sales and Marketing and, as distribution liaison, is responsible for customer relations with the wholesale and retail outlets throughout Colorado. He continues to share those responsibilities with His wife Allyson. Brandon is a graduate from the University of Colorado with a Bachelor of Arts and Science degree in English Literature and Business Administration.

Brandon and his family moved to Grand Junction, where he is becoming more involved with the day-to-day activities at the winery. He loves reading, writing, playing the guitar and spending quality time with his family and friends.

Rob Crowell |

special projects manager

Rob wears many hats with the business. He is the Special Projects Manager, manages the beverage activities at the Chateau, and is the artist in residence for the etched bottle program. He is married to the daughter of Bob and Billie.

It was a circuitous route that landed Rob in the State of Colorado. Born in 1973 to linguists/missionaries, Rob was raised in Brazil prior to a family move to Texas when he was in middle school. He honed his Spanish speaking skills and worked as a Landscape Supervisor for David Wilson Design, while attending the University of Texas. Rob has had a life-long passion for cooking, and customers are often quite happy to be able to taste his deliciously crafted hors d’ oeuvres.

His outgoing personality and creative energy contribute to multiple aspects within the business.

Brittany Witham-Crowell |

special events manager

Brittany is the Events Manager at the Chateau. She returned to her native Colorado, leaving her past profession as a Regional Make-up Artist for Lancome & Estee Lauder, and calling upon her unique retail and customer service experience to assist in the family business. She utilizes these skills, along with a positive attitude, to coordinate the many weddings and special events at Two Rivers Winery & Chateau. Brittany is excited about Western Colorado’s burgeoning wine industry and is proud of the quality products at Two Rivers Winery. She enjoys literature, cooking with her husband, Rob, and interior design.

Leigh Ann Lard |

general manager

A native of Grand Junction, Leigh Ann is the General Manager, a role in which she is able to utilize her excellent multi-tasking abilities. She takes care of the business’ bookkeeping and has cross-trained in many aspects of the project, including inventory management, hospitality coordination and Human Resources.

She and her husband, Lynn, also own a successful salon, where she continues to be actively involved. A busy mother of four, with two girls still at home, Leigh Ann still finds time to enjoy cooking, boating, fishing and literature.

Allyson Witham |

operations manager

Allyson is the Operations Manager at Two Rivers Winery, which enables her to put her detail-oriented focus to great use. She is involved in managing inventory, daily activities throughout the project, and the tasting room where she enjoys visiting with customers from all over the world. Allyson graduated from the University of Colorado with a Bachelor of Arts and Science degree in Geography, including focuses in Business and French. Her career has involved management positions in engineering, sales, and production. She enjoys time with family and friends, outdoor activities, continued learning, music and travel.

Two Rivers Winery + Chateau Grand Junction, CO

SLIFER SMITH & FRAMPTON C O M M E R C I A L + E N T R E P R E N E U R I A L R E A L E S TAT E Connecting Entrepreneurs through the Business of Real Estate

Presented by Mike Mercatoris 970.618.7092 mmercatoris@sliferrfv.com