In the month of February 2009, W.J. Deutsch and Sons, executives from the U.S wine importer, had a meeting in White Plains, New York, in order to achieve a consensus on how to react to changes in the market. Wine consumers had started buying less expensive wines, or "trading down," amidst a worldwide downturn in 2008-2009, reversing a five-year "trading up" tendency. Stocks ballooned in the wine industry supply chain. Some producers and importers, unable to sell stocks, went into default.
John Casella, Managing Director of Casella Wines, suggested repositioning the [yellowtail] brand, priced at $4.99 - $5.99 per 750ml bottle, while Deutsch's creator, Bill Deutsch, and his son, Peter (CEO), could not agree on a strategy.
The-Deutsch-Casella-Joint-Venture-and-Yellow-Tail®-Wines-Trading-Up-or-Trading-Down-case-study-solution® Wines Trading Up or Trading Down case study solution"]
PUBLICATION DATE: January 12, 2015 PRODUCT #: NA0302-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION