Michael Shaps and United States had developed a reputation as one of Virginia's highest winemakers. He could raise his profits by selling PL wines at higher margins. Nevertheless, it would take time to grow this new company, and any capacity reticent for a "custom crush" operation would diminish the amount of cases of his own MS wines he could make.
The financials of custom crush appeared really promising, because before harvest - a situation of uncommon security in the volatile wine business, revenue from PL would be guaranteed by contracts in addition to higher gross profits. Although his MS wines were popular and regionally of high quality, producing his own labeled wines was more of a high risk company, subject to myriad factors.
Past the short-term fiscal impact, he also needed to contemplate a PL business would change his own MS brand. Finally, Shaps had the prospect to enclose wine in a box at significant savings over bottles and desire to choose how or whether to introduce MS or PL wine in a carton.
PUBLICATION DATE: November 18, 2013 PRODUCT #: W13488-HCB-ENG
Michael Shaps Winery Evaluating the Custom Crush Opportunity Case Study Solution
This is just an excerpt. This case is about SALES & MARKETING
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