logging in or signing up Napa Cabernet Sauvignon COGS jackryno Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 93 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: October 08, 2010 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Slide 1: Winery Biz 101: COGS: Napa Valley Cabernet Sauvignon A 5,000 Case Winery Perspective Jack Ryno www.WineryThink.com Slide 2: Growing Grapes Winemaking Packaging & Warehousing Bare Land $0/btl Grapes $6.11/btl Bulk Wine $2.71 – $5.42/btl Bottled Wine $10.00 – $20.00 – $37.50/btl Retail Consumer $20.00 – $40.00 – $75.00/btl 2008 Napa Cabernet Sauvignon Value Stream www.WineryThink.com Distribution The Make Up of Wine COGS : The Make Up of Wine COGS Operations Staff Production Facilities Overhead Grapes Harvest Processing Bulk Wine Storage and Aging Bottling Warehousing www.WineryThink.com COGS: Staff and Facility Component : COGS: Staff and Facility Component Highly Variable and Specific Acquisition Costs Type of Wine Produced Equipment and Processes Used HR Needs and Philosophy For This Analysis, Assume: Typical Napa/Sonoma Custom Crush Pricing Adjusted costs under “Other” 5,000 Cases Total Production 1,000 Case per Lot/Variety www.WineryThink.com California State Grape Crush Reporthttp://www.nass.usda.gov/Statistics_by_State/California/Publications/Grape_Crush/Final/index.asp : California State Grape Crush Reporthttp://www.nass.usda.gov/Statistics_by_State/California/Publications/Grape_Crush/Final/index.asp www.WineryThink.com California State Grape Crush Reporthttp://www.nass.usda.gov/Statistics_by_State/California/Publications/Grape_Crush/Final/index.asp : California State Grape Crush Reporthttp://www.nass.usda.gov/Statistics_by_State/California/Publications/Grape_Crush/Final/index.asp www.WineryThink.com Slide 7: www.WineryThink.com COGS: Grape Component Dist 4 Cab Sauv: $4,619.44 per ton Yield: 60 cases produced per ton COGS (Grapes): $76.99 per case produced COGS: Production Assumptions : COGS: Production Assumptions Napa/Sonoma Custom Crush Pricing Variable, Based on A La Carte Menu Assumes “World Class” Production Techniques Winemaking “Problems” Increase Costs Time Period: Harvest Through 12/31/201X Storage/Aging + 18 Months Warehousing 6 Months Bottle Age, 12 Month Selling Cycle Premium Packaging www.WineryThink.com COGS: Harvest Component : COGS: Harvest Component Est/cs Crush & Press – Open Top $11.67 Acid Addition 0.23 Press Cut 0.58 Tank Warming 0.44 Barrel Delivery 0.21 First Rack 0.27 Rack to Barrel 0.32 Barrel Storage 1.37 Laboratory Analysis 1.39 Total Harvest Component $16.46 www.WineryThink.com COGS: Bulk Storage and Aging Component : COGS: Bulk Storage and Aging Component Est/cs Barrel Storage (full) $ 5.70 Barrel Storage (empty) 0.93 Tank Storage 0.72 Rank/Blend to Tank 0.32 DE Filtration 0.42 Pad Filtration 0.44 Laboratory Analysis 0.99 Samples 0.08 Total Storage/Aging Component $ 9.59 www.WineryThink.com COGS: Bottling Component : COGS: Bottling Component Est/cs Bottling $ 4.20 Glass 9.69 Corks 3.04 Capsules 2.13 Labels 3.25 Total Bottling Component $22.31 www.WineryThink.com COGS: Warehousing Component : COGS: Warehousing Component Est/cs 18-Month Bottle Aging/Selling $ 2.10 www.WineryThink.com COGS: Other : COGS: Other Est/cs Winemaking Consultant $10.00 Alternating Proprietor /Admin. 3.25 Barrels & Racks (a) 19.40 Total Other $32.65 (a) capitalized expense www.WineryThink.com COGS: Napa Cabernet Sauvignon : COGS: Napa Cabernet Sauvignon Est/cs Staff and Facility $ Incl. Grapes 76.99 Harvest 16.46 Storage & Aging 9.59 Bottling 22.31 Warehousing 2.10 Winemaking Consultant 10.00 Alternating Proprietor 3.25 Barrels & Racks (a) 19.40 Total COGS $160.10 www.WineryThink.com Slide 15: Growing Grapes Winemaking Packaging & Warehousing Bare Land $0/btl Grapes $6.11/btl Bulk Wine $2.71 – $5.42/btl Bottled Wine $10.00 – $20.00 – $37.50/btl Retail Consumer $20.00 – $40.00 – $75.00/btl 2008 Napa Cabernet Sauvignon Value Stream www.WineryThink.com Distribution Slide 16: Growing Grapes Winemaking Packaging & Warehousing Bare Land $0/btl Grapes $6.11/btl Bulk Wine $2.71 – $5.42/btl Bottled Wine $10.00 – $20.00 – $37.50/btl Retail Consumer $20.00 – $40.00 – $75.00/btl 2008 Napa Cabernet Sauvignon Value Stream www.WineryThink.com Distribution $13.34 COGS ($160.10 / 12 btl/cs) 3-Tier Slide 17: Growing Grapes Winemaking Packaging & Warehousing Bare Land $0/btl Grapes $6.11/btl Bulk Wine $2.71 – $5.42/btl Bottled Wine $10.00 – $20.00 – $37.50/btl Retail Consumer $20.00 – $40.00 – $75.00/btl 2008 Napa Cabernet Sauvignon Value Stream www.WineryThink.com Distribution $13.34 COGS ($160.10 / 12 btl/cs) Direct to Consumer COGS: Summary : COGS: Summary Staff Needs and Facility Overhead is Highly Variable and Specific. Grape Costs can Represent 50%, or more, of the Total COGS. Production Costs Decrease as Volume Increases. Winemaking “Problems” Increase COGS. Understanding the Value Stream and COGS are critical in Developing a Successful Winery Business Model. The Third Component is Understanding the Cost of Sales and how the Wine will be Sold into the Marketplace. www.WineryThink.com Slide 19: Jack Ryno www.WineryThink.com See more Winery Biz 101 videos at: www.WineryThink.com You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Napa Cabernet Sauvignon COGS jackryno Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 93 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: October 08, 2010 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Slide 1: Winery Biz 101: COGS: Napa Valley Cabernet Sauvignon A 5,000 Case Winery Perspective Jack Ryno www.WineryThink.com Slide 2: Growing Grapes Winemaking Packaging & Warehousing Bare Land $0/btl Grapes $6.11/btl Bulk Wine $2.71 – $5.42/btl Bottled Wine $10.00 – $20.00 – $37.50/btl Retail Consumer $20.00 – $40.00 – $75.00/btl 2008 Napa Cabernet Sauvignon Value Stream www.WineryThink.com Distribution The Make Up of Wine COGS : The Make Up of Wine COGS Operations Staff Production Facilities Overhead Grapes Harvest Processing Bulk Wine Storage and Aging Bottling Warehousing www.WineryThink.com COGS: Staff and Facility Component : COGS: Staff and Facility Component Highly Variable and Specific Acquisition Costs Type of Wine Produced Equipment and Processes Used HR Needs and Philosophy For This Analysis, Assume: Typical Napa/Sonoma Custom Crush Pricing Adjusted costs under “Other” 5,000 Cases Total Production 1,000 Case per Lot/Variety www.WineryThink.com California State Grape Crush Reporthttp://www.nass.usda.gov/Statistics_by_State/California/Publications/Grape_Crush/Final/index.asp : California State Grape Crush Reporthttp://www.nass.usda.gov/Statistics_by_State/California/Publications/Grape_Crush/Final/index.asp www.WineryThink.com California State Grape Crush Reporthttp://www.nass.usda.gov/Statistics_by_State/California/Publications/Grape_Crush/Final/index.asp : California State Grape Crush Reporthttp://www.nass.usda.gov/Statistics_by_State/California/Publications/Grape_Crush/Final/index.asp www.WineryThink.com Slide 7: www.WineryThink.com COGS: Grape Component Dist 4 Cab Sauv: $4,619.44 per ton Yield: 60 cases produced per ton COGS (Grapes): $76.99 per case produced COGS: Production Assumptions : COGS: Production Assumptions Napa/Sonoma Custom Crush Pricing Variable, Based on A La Carte Menu Assumes “World Class” Production Techniques Winemaking “Problems” Increase Costs Time Period: Harvest Through 12/31/201X Storage/Aging + 18 Months Warehousing 6 Months Bottle Age, 12 Month Selling Cycle Premium Packaging www.WineryThink.com COGS: Harvest Component : COGS: Harvest Component Est/cs Crush & Press – Open Top $11.67 Acid Addition 0.23 Press Cut 0.58 Tank Warming 0.44 Barrel Delivery 0.21 First Rack 0.27 Rack to Barrel 0.32 Barrel Storage 1.37 Laboratory Analysis 1.39 Total Harvest Component $16.46 www.WineryThink.com COGS: Bulk Storage and Aging Component : COGS: Bulk Storage and Aging Component Est/cs Barrel Storage (full) $ 5.70 Barrel Storage (empty) 0.93 Tank Storage 0.72 Rank/Blend to Tank 0.32 DE Filtration 0.42 Pad Filtration 0.44 Laboratory Analysis 0.99 Samples 0.08 Total Storage/Aging Component $ 9.59 www.WineryThink.com COGS: Bottling Component : COGS: Bottling Component Est/cs Bottling $ 4.20 Glass 9.69 Corks 3.04 Capsules 2.13 Labels 3.25 Total Bottling Component $22.31 www.WineryThink.com COGS: Warehousing Component : COGS: Warehousing Component Est/cs 18-Month Bottle Aging/Selling $ 2.10 www.WineryThink.com COGS: Other : COGS: Other Est/cs Winemaking Consultant $10.00 Alternating Proprietor /Admin. 3.25 Barrels & Racks (a) 19.40 Total Other $32.65 (a) capitalized expense www.WineryThink.com COGS: Napa Cabernet Sauvignon : COGS: Napa Cabernet Sauvignon Est/cs Staff and Facility $ Incl. Grapes 76.99 Harvest 16.46 Storage & Aging 9.59 Bottling 22.31 Warehousing 2.10 Winemaking Consultant 10.00 Alternating Proprietor 3.25 Barrels & Racks (a) 19.40 Total COGS $160.10 www.WineryThink.com Slide 15: Growing Grapes Winemaking Packaging & Warehousing Bare Land $0/btl Grapes $6.11/btl Bulk Wine $2.71 – $5.42/btl Bottled Wine $10.00 – $20.00 – $37.50/btl Retail Consumer $20.00 – $40.00 – $75.00/btl 2008 Napa Cabernet Sauvignon Value Stream www.WineryThink.com Distribution Slide 16: Growing Grapes Winemaking Packaging & Warehousing Bare Land $0/btl Grapes $6.11/btl Bulk Wine $2.71 – $5.42/btl Bottled Wine $10.00 – $20.00 – $37.50/btl Retail Consumer $20.00 – $40.00 – $75.00/btl 2008 Napa Cabernet Sauvignon Value Stream www.WineryThink.com Distribution $13.34 COGS ($160.10 / 12 btl/cs) 3-Tier Slide 17: Growing Grapes Winemaking Packaging & Warehousing Bare Land $0/btl Grapes $6.11/btl Bulk Wine $2.71 – $5.42/btl Bottled Wine $10.00 – $20.00 – $37.50/btl Retail Consumer $20.00 – $40.00 – $75.00/btl 2008 Napa Cabernet Sauvignon Value Stream www.WineryThink.com Distribution $13.34 COGS ($160.10 / 12 btl/cs) Direct to Consumer COGS: Summary : COGS: Summary Staff Needs and Facility Overhead is Highly Variable and Specific. Grape Costs can Represent 50%, or more, of the Total COGS. Production Costs Decrease as Volume Increases. Winemaking “Problems” Increase COGS. Understanding the Value Stream and COGS are critical in Developing a Successful Winery Business Model. The Third Component is Understanding the Cost of Sales and how the Wine will be Sold into the Marketplace. www.WineryThink.com Slide 19: Jack Ryno www.WineryThink.com See more Winery Biz 101 videos at: www.WineryThink.com