You have inherited the “Old Winery” from your grandfather, a winery that has been family-owned for five generations and can be dated back to the 16th century.
Half of the eleven hectares are used to grow white grapes, the other half to grow red grapes. They are grown in a conventional way, i.e. they are not organically farmed and certified. The vine stocks are in a good condition regarding age and care. Overall, the only ¼ of the harvest is made into wine by the winery itself; the rest is sold.
Your grandfather never wanted to change the image of the winery and left the managerial and administrative task to a young and energetic wine-maker. Due to the not so well-known brand, the demand for the “Old Winery” wine is currently rather low.
You do not intent to run the winery operatively, given your limited knowledge of winemaking, but find the idea of owning a winery exciting. Your plan is to give the winery some fresh impetus.
The case is divided into three main tasks. The aim of the first is to estimate the yield of the winery in order to gain a first understanding of the specificities of the wine-making process. For the second task, the interviewee will quantify the costs of running the winery based on a business case and compare these to the market. Measures to increase the profitability should be discussed. The third task consists of developing an image and marketing strategy, to sell a higher-priced wine to “Generation Y” customers, i.e. persons in their late 20s or early 30s.