Wine Cellar Metrics Gary M. Thompson, Ph.D. Professor of Service Operations Management School of Hotel Administration, Cornell University AAWE Annual Conference, Bordeaux FR 22 June 2016

Presentation Outline Intro: why cellar wines Goals for the paper Overview of the metrics Two real cellars and charts demonstrating the items being measured Next steps & wrap-up

How many of you have wine cellars? Why Cellar Wines Isn’t it obvious??? How many of you have wine cellars? Our perspective in this paper is that of an cellar owner/manager who wants a stable, robust cellar: Diversity is valuable

Goals for the Paper Introduce metrics for evaluating the status of a wine cellaring. Illustrate use of the metrics using examples of real cellars. Perform a simulation-based study to identify normative values of the metrics. We hope to help those who cellar wines make better decisions (and so enable them to drink better wine).

Focus on concentration, meaning overrepresentation of wine: The Metrics Focus on concentration, meaning overrepresentation of wine: At a similar point in their maturity (“drink window”) That will reach full maturity at the same time That will reach full maturity around the same time From particular countries or regions From particular varietals

Both cellars contain about 1500 bottles Price = Examples: Two Cellars Both cellars contain about 1500 bottles Both cellars have existed at least 10 years Both are in the USA

Concentration By Time: Where in the Drink Window? Price =

Concentration by Time: End of Drink Window Price =

Concentration by Time: Cumulative Consumption Price =

Concentration by Country Price =

Concentration by Varietals Price =

Calculating the metrics for the cellars Next Steps I have data from two Australian cellars, that I will include as examples Calculating the metrics for the cellars Performing a simulation-based study to establish normative values for the metrics. Important factors are likely to include: Relative capacity of the cellar (in years of consumption) Likelihood of a change in tastes

Q & A Thank you for listening. I’m happy to take questions (time permitting). Please ask! gmt1@cornell.edu.