New wineries operating in a nascent wine region need strategies to build market legitimacy and gain access to resources crucial to the survival and growth of the winery. Since most wineries in the cool climate wine region are less than 10 years old and produce less than 3,000 cases annually, these firms struggle to attract customers and sell their wine outside their own tasting room. Through surveying 113 wineries in Michigan, Missouri and New York, an overview of the current management and marketing strategies were captured in addition to defining eight indicators of legitimacy (the percent of wine a firm sells through formal distribution channels, obtaining external funding, number of employees hired, breath of trading network and having an arrangement with a tour bus company). Through bivariate and multivariate analyses, we found strong correlations among the legitimacy indicators and wineries' management and marketing decisions. The key strategies recommended in this thesis for new wineries is to, use more vinifera grapes, increase production, apply for and advertise awards, offer food products and club promotions, have a gift shop and utilize social media. Since new wineries often lack a performance record, our results show indicate that new wineries are not at a disadvantage in gaining external funding compared to older, more established wineries. The results and strategies are beneficial to new firms, supporting industries, extension efforts and academic research. Finally, the findings and strategies contribute to the literature on legitimacy, developing wine regions and strategies for entrepreneurial ventures in the agri-food sector.
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