Calaveras Vineyard

1. Company Overview Calaveras Vineyard was originally established in 1883 as a family-owned business, since when it expanded to production of table wines to retailers and restaurants. Moreover, their products are categorized into 3 main quality categories in which 5 product categories can be found: Estate wines High-quality products Selected vineyard wines California wines Selected-vineyard-programs Generic wines Lower-quality products Special-accounts Figure1 Product Categorization Throughout the years, the company had changes in the ownership structure, but also improvements in the brand quality and market position through major capital improvements and upgrading of machinery, which lead to an increase in the average wholesale price. The main strategy from 1987 was broadening the company’s position on premium brand category, which was successful. The new strategy consists of recruiting the West-Coast marketer Winston Fendall, who will provide them a strong mechanism to secure cash flow position due to the paying arrangement between those two companies. We based our further analysis of the company on set of assumptions including the historical and forecasted data in which an optimistic sales trend is included. Moreover, sales are forecasted to grow on average 9% over next five years due to the assumption of increase in demand for wine products, increase in real prices and increase in production per ton of grapes and yield per acre. (Figure 1 and Figure 2) The preferences of the US population are expected to shift towards a more consumption of wine, meaning that it is expected that the market will grow at a higher rate than the increase in prices within the market. Based on these assumptions the forecast shows us that some of the product groups will generate sales in a significantly increasing amount whereas other of the product groups will have a smaller share of the sale. Special-programs

Super-premium category

Medium-quality products

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