Willamette Valley Vineyards K URT B ERNING D EMI W ILKINSON A MANDA A PLET R YAN K EY Z ACH S TEINKAMP Inspired and Aided By: Kevin O’Brien
Winery Roadmap Industry Overview FreeWheel Wines Alternatives and Recommendation Implementation Risk Assessment and Five Forces Financials
U.S. wine consumption surpassed that of France in 2010, with dollar sales reaching $36.2 billion Growth of US market Consumer interest Industry Overview
Freewheel Problem Solution
Recommendation Start a new product line through the Astrapouch packaging.
Alternative 1 –traditional glass bottles Alternative 2 – boxed wine Alternative 3 –plastic bottles Alternative 4 –Tetra packaging Alternatives
Implementation New Product Line Riesling and lower priced wine Develop Website and social media Phone and IPod apps
5 Forces and Risk Analysis Threats –Entry-> Medium –Rivalry->High –Substitution->High –Powerful Suppliers->Low –Powerful Buyers-> Low Risks – Supply/Demand – Acceptance – Oxygen Permeable
Financials – Assumptions
Cash Flow Statement
Industry NI/NS Data
Specific Astra Pouch Market
Mintel: U.S. Dollar Sales and Forecast $million% change Index (2006 = 100) Index (2011 = 100) , , , , , (est.)36, (fore.)37, (fore.)37, (fore.)38, (fore.)39, (fore.)39,
Mintel: Volume Sales of Wine Year 9-liter cases% change Index (2005 = 100) Index (2010 = 100) , , , , , (est.)305,
Green Data AstraPouch has an 80% reduced carbon footprint compared to glass. “Eco-friendly” has become a major trend in packaging: there were over 600 food and beverage products launched in 2008 that featured environmentally- friendly packaging claim Mintel predicts that there will be 9% more Super Greens in the population by 2015 Consumers will support sustainability in food and beverage packaging as long as they do not have to pay for it 36% of people would buy the Eco-Friendly option over a bottle if all else was equal
Australia & New Zealand BUD Naked, an Australian Wine Company, sold 60,000 cases over the past year, meaning 360,000 pouches sold (six per case).This development occurred in two years. CLIF Family Winery has started is only using the Astra Pouch. (Makers of CLIF Bar)
Shipping and Operating Costs 33% Reduction in Shipping Costs Dramatic reduction in bottling costs because it is a one step process and equipment.