Chalice Wines Case
Chalice Wines Case
The Chalice Wine Group (CWG) is a wine producer has a prestigious reputation for producing consistently elegant wines. The CWG owns two vineyards (Chalice and Cimarron) and half of a third (Delta), and also owns three wineries (Chalice, Cimarron, and Alicia) and half of a fourth (Opera Valley). Chalice winery is the flagship of the four wineries, and founded in 1969. In June 1993, Chalice was the only publicly-held company in the United States whose principal business is the production and sale of premium wines. The four California wineries are located in different place. Each of them has their own president, typically the winemaker, and separate profit center separately.
The Chalice Wine Group has long story with a prestigious reputation for producing great wine. From the information that from the article, I calculated the price that the retailer will sell to the end consumer is $141.88, which means their target customers are the people who has some purchasing power. So, the CWG is a strong competitor in the mid-high end wine market. Because as we read from the article, CWG keeps lose money from 1992, but the other market competitor named Lyford Winery has good profit margin, and ROA ratio.
According to the financial report of CWG, at 1992 and 1993, the group had a net loss of $741,000 and $700,000 separately. In order to find out why the company is losing money, and where did this money lost, and how can the other similar industry companies make money, I will trace the paths followed by the 1991 Cimarron Meritage White from the vinery, winery, distributor to retailor to analysis the numbers in this value chain and find out the reason why the company lost their money.
The Vineyard In order to produce the Cimarron Meritage White, the Cimarron winery needs to buy two kinds of grapes for total 89.17 tonnages at $812.36/ton. Because these two kinds of grapes are grown outside of the Cimarron Vineyard, so they need to pay the hauling
The Chalice Wine Group (CWG) is a wine producer has a prestigious reputation for producing consistently elegant wines. The CWG owns two vineyards (Chalice and Cimarron) and half of a third (Delta), and also owns three wineries (Chalice, Cimarron, and Alicia) and half of a fourth (Opera Valley). Chalice winery is the flagship of the four wineries, and founded in 1969. In June 1993, Chalice was the only publicly-held company in the United States whose principal business is the production and sale of premium wines. The four California wineries are located in different place. Each of them has their own president, typically the winemaker, and separate profit center separately.
The Chalice Wine Group has long story with a prestigious reputation for producing great wine. From the information that from the article, I calculated the price that the retailer will sell to the end consumer is $141.88, which means their target customers are the people who has some purchasing power. So, the CWG is a strong competitor in the mid-high end wine market. Because as we read from the article, CWG keeps lose money from 1992, but the other market competitor named Lyford Winery has good profit margin, and ROA ratio.
According to the financial report of CWG, at 1992 and 1993, the group had a net loss of $741,000 and $700,000 separately. In order to find out why the company is losing money, and where did this money lost, and how can the other similar industry companies make money, I will trace the paths followed by the 1991 Cimarron Meritage White from the vinery, winery, distributor to retailor to analysis the numbers in this value chain and find out the reason why the company lost their money.
The Vineyard In order to produce the Cimarron Meritage White, the Cimarron winery needs to buy two kinds of grapes for total 89.17 tonnages at $812.36/ton. Because these two kinds of grapes are grown outside of the Cimarron Vineyard, so they need to pay the hauling