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This is similar to a relationship that the wine maker may have with a bank or other lender to the wine maker.

“Granting a lien” in one’s assets means that the wine maker has pledged those assets to the custom-crush provider as collateral if and when the wine maker fails to perform any of its required obligations under the custom-crush contract.įor example, if the wine maker fails to make any payment required under the contract, then by contract, the custom-crush provider would have the right to call the wine maker in default, foreclose on any of the assets of the wine maker located at the custom-crush facility and liquidate those assets to repay any outstanding obligations owed to the custom-crush provider at that time. Such a lien almost always breaches the covenants in the wine maker’s commercial loan agreements. When evaluating potential custom-crush facilities and providers, wine makers should look out for any requirement under the contract that the wine maker grants a lien to the custom-crush provider in all of the wine maker’s assets located at the crush facility, and the products and proceeds of those assets, as collateral to support all charges, fees, and obligations owed to the custom-crush provider. Custom crush is an effective method for vintners to start and grow their label and brand without requiring the capital intensive investment of a dedicated winery.