Case Study: Sandlands Vineyards

Esty, Benjamin C and Saldutte, Greg (2018) Case Study: Sandlands Vineyards. Harvard Business School.

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Abstract

Approximately 80% of the 9,000 wineries in the US breakeven or lose money. An even greater percentage lose money on an economic basis (i.e., after a charge for the capital employed). Tegan Passalacqua, a Californian winemaker who specializes in making "old vine" wine (i.e., wine from grape vines that are at least 60 and up to 100+ years old), appears to have defied these odds. By day, he is the head winemaker at Turley Wine Cellars, a leading Zinfandel producer. In his spare time, however, he makes premium wines under the Sandlands label using Turley's facilities and "forgotten" grape varieties such as Carignane, Mataro, and Chenin Blanc. The objective is to understand what makes the industry so challenging, why Passalacqua has succeeded to date, and whether his success will persist into the future. The case is set in December 2017, as Passalacqua and his wife Olivia were deciding whether to buy a building and develop a winery for the Sandlands wines at a cost of up to $500,000. Because they already owned an old vine vineyard (the Kirschenmann Vineyard in Lodi, CA) and have limited financial resources and time, they must decide whether to make this investment or to save their resources for another investment such as a second old-vine vineyard.

Item Type:	Case Study
Subjects:	600 Technology (Applied Sciences) > 650 Management and Public Relations > 658 General management (Risk Management, Profit and Loss, Logistics) > 658.2 Plant Management 600 Technology (Applied Sciences) > 650 Management and Public Relations > 658 General management (Risk Management, Profit and Loss, Logistics) > 658.5 Management of Production
Divisions:	Faculty of Business > Master of Technology Management
Depositing User:	Administrator UMN Library
Date Deposited:	17 Dec 2020 03:42
Last Modified:	02 Aug 2022 08:58
URI:	https://kc.umn.ac.id/id/eprint/15639

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