Commodity Grapes

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Grapes: Pinot Noir : 

Grapes: Pinot Noir Production, Operations and Distribution Janet Andoe, Ryan Baker Frankie Cvetovac, Susan van Goor December 9, 2003

Grapes: 

Grapes Building block of wine Used as a source of sugar to ferment into alcohol Enhances the color, flavor & character of the wine Strategic importance is related to: variety, appellation and quality

Materials needed for Production: 

Materials needed for Production Trellis parts: stakes, endposts, wire, clips Irrigation parts: PVC pipe, drip tubing & drip emitters Plant Material Soil Water Fertilizers Pesticides Herbicides

Timeline of annual production: 

Timeline of annual production

Pinot Noir: Presence in the Marketplace: 

Pinot Noir: Presence in the Marketplace

Pinot Noir regions: 

Pinot Noir regions Areas with the best potential for quality and availability: Sonoma County: Sonoma Coast, Russian River, Green Valley and Carneros Redwood Valley-Mendocino County Monterey County (southern half) San Luis Obispo County Santa Barbara County

Specifications: 

Specifications Pinot Noir label of 100,000 cases requires: 1,600 tons of Pinot Noir grapes 85% must be from the Sonoma County appellation 95% must be from the upcoming 2004 harvest Brix level of 24 – 25 Grapes must be of sound quality and without defects

Sourcing Options: 

Sourcing Options Insourcing: the winery grows their own grapes Outsourcing: the winery buys the grapes from a grower or a broker Alternatives: ~ purchase grape juice concentrate ~ purchase bulk wine and bottle it directly

Tonnages and Prices of Available Pinot Noir Grapes for Harvest 2004: 

Tonnages and Prices of Available Pinot Noir Grapes for Harvest 2004 Sonoma County – Available: 2,615 Needed: 1,376 Monterey County – Available: 1,450 Needed: 224 Total tons available: 4,065 Needed: 1,600

Slide10: 

Gallons and Prices of Available Sonoma County Pinot Noir Bulk Wine Summary of availability: 6,160 Total 2003 Sonoma County 80,994 Total 2002 Sonoma County 92,000 Total 2003 Central Coast 79,834 Total 2002 Central Coast

Grape Purchasing Alternatives: 

Grape Purchasing Alternatives

Cost Analysis of Purchasing a Vineyard: 

Cost Analysis of Purchasing a Vineyard

Sourcing Strategy: 

Sourcing Strategy

Sourcing Strategy: 

Sourcing Strategy

Sourcing Strategy: 

Sourcing Strategy

Sourcing Strategy: 

Sourcing Strategy

Sourcing Strategy: 

Sourcing Strategy

Recommendations: 

Recommendations Option #1: least expensive and increased flexibility