Estate Planning: the secret ingredient for the longevity of wineries.

Brazilian vitiviniculture is experiencing a special moment, one of strength and recognition. But behind the award-winning bottles and the enchanting vineyards lies a quiet and decisive element ensuring that this success endures through generations: asset and estate planning.

Wine production is not merely an economic activity. It is the preservation of cultural, family, and territorial heritage. And safeguarding this future requires a strategy that goes far beyond day-to-day operations.

Wineries are, for the most part, family businesses. This brings strength and identity, but also challenges. When clarity, agreements, or organization are lacking, internal conflicts may arise - and they have the potential to seriously compromise the continuity of the business.

• Well-structured governance prevents disputes, protects family relationships, and gives stability to the enterprise.

• Tools such as holding companies, planned donations, and wills reduce the tax burden, preserving more assets for successors.

• Regular asset valuations - land, brands, stocks, equipment - allow for more precise and strategic decisions.

• And there is yet another crucial point: credibility with investors and financial institutions.

The development of a well-crafted succession plan conveys professionalism and organizational maturity, facilitating access to capital for expansion and modernization.

The continuity of a winery depends on its ability to pass through generations without losing its essence. And this only happens when succession is planned in advance.

• Smooth leadership transition: prevents disruptions in production, management, and brand positioning.

• Preservation of legacy and quality: tradition, terroir, and reputation are built slowly — and can be lost quickly without proper care.

• Preparing the next generation: leadership is cultivated, not improvised.

• Resilience in the face of crises: unexpected events, such as the sudden absence of the founder, do not paralyse a business that has anticipated such risks.

A fact that cannot be ignored!

Although 90% of Brazilian companies are family-owned, only 36% reach the second generation, and just 15% survive beyond the third. (SEBRAE, 2024)

Planning is not bureaucracy - it is survival.

Longevity is the exception - not the rule. And the difference between continuity and disappearance lies, almost always, in planning.

“While visiting wineries in southern Brazil, I noticed something that goes far beyond technique or terroir: grapes, wines, and olive oils tell stories. They are the result of decades of work, dreams, and family identity.

But I also saw how fragile this dream can become when organization is lacking. Difficult conversations are necessary. Involving the next generation is essential. Aligning expectations, defining roles, and supporting those who will take on leadership are what separate a preserved legacy from a threatened heritage.

And there is an ideal moment for this: when the business is healthy, the family united, and the founder present.”

Asset and succession planning is not a luxury. It is a strategy for survival - and perpetuation. For your winery to thrive not only today but for decades to come, it must treat this planning as an investment as important as caring for the soil, the harvest, or production - protecting the story, the work, and the legacy of an entire family.

LINK:

https://www.linkedin.com/pulse/estate-planning-secret-ingredient-longevity-wineries-maria-amaral-s7xzf