logging in or signing up Napa Cabernet Sauvignon Negociant 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: 98 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: October 11, 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 100,000 Case JIT Negociant 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 Slide 3: 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 JIT Negociant Wine COGS : The Make Up of JIT Negociant Wine COGS Operations Staff Production Facilities Overhead Grapes Harvest Processing Bulk Wine Storage and Aging Bottling Warehousing www.WineryThink.com Bulk Wine COGS: Staff and Facility Component : COGS: Staff and Facility Component Winemaker costs $1.00 per case All Other Production Staff costs Included in Custom Crush Pricing. For This Analysis, Assume Facility Costs as: Typical Napa/Sonoma Custom Crush Pricing Captured in Custom Services Pricing 100,000 Cases Total Production 25,000 Case per Lot/Variety Bottle each variety 4 times a year www.WineryThink.com Slide 6: www.WineryThink.com COGS: Bulk Wine Component Turrentine Wine Brokerage Market Update http://www.turrentinebrokerage.com/newsletter/ Napa Valley Cabernet Sauvignon: $21.00/gallon Note: Consider the Source of Bulk Wine Slide 7: www.WineryThink.com COGS: Bulk Wine Component Minimum requirements to label a wine “Napa Valley Cabernet Sauvignon” 85% Napa Valley Appellation 75% Napa Valley Cabernet Sauvignon Extended Blend Percentages Napa Valley Cabernet Sauvignon 75% $21.00 $15.75 Napa Valley Merlot 10% 10.00 1.00 California Ruby Cabernet 15% 3.00 0.45 Weighted Average per Gallon $17.20 $17.20/gallon X 2.5 gallons/case = $43.00/case COGS: Production Assumptions : COGS: Production Assumptions Napa/Sonoma Custom Crush Pricing Variable, Based on A La Carte Menu Assumes Standard Production Techniques Time Period: Storage/Aging 4 – 6 Months Warehousing 1 Month Bottle Age, 3 Month Selling Cycle Standard Packaging www.WineryThink.com COGS: Harvest Component : COGS: Harvest Component Est/cs Total Harvest Component $ 0 www.WineryThink.com COGS: Bulk Storage and Aging Component : COGS: Bulk Storage and Aging Component Est/cs Tank Storage 2.15 Oak Chips 0.21 Micro Oxidation 0.24 Rank/Blend to Tank 0.51 DE Filtration 0.29 Pad Filtration 0.29 Laboratory Analysis 0.12 Samples 0.01 Total Storage/Aging Component $ 3.82 www.WineryThink.com COGS: Bottling Component : COGS: Bottling Component Est/cs Bottling $ 2.30 Glass 6.83 Corks 2.43 Capsules 2.13 Labels 1.95 Total Bottling Component $15.64 www.WineryThink.com COGS: Warehousing Component : COGS: Warehousing Component Est/cs 4-Month Bottle Aging/Selling $ 0.90 www.WineryThink.com COGS: Other : COGS: Other Est/cs Alternating Proprietor /Admin. $0.13 www.WineryThink.com COGS: Napa Cabernet Sauvignon : COGS: Napa Cabernet Sauvignon Est/cs Staff and Facility $ 1.00 Bulk Wine 43.00 Harvest 0 Storage & Aging 3.82 Bottling 15.64 Warehousing 0.90 Alternating Proprietor 0.13 Total COGS $64.49 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 $ 7.50 – $10.00/btl Retail Consumer $15.00 – $20.00/btl 2008 Napa Cabernet Sauvignon Value Stream - Negociant www.WineryThink.com Distribution $5.37 COGS ($64.49 / 12 btl/cs) 3-Tier COGS: Summary : COGS: Summary Just In Time Negociant Wineries generally purchases bulk wine rather than grapes. Bulk wine is available because of excess supply and/or quality selection processes at other wineries. Buying wine further along the development continuum frequently decreases production cost and time required before bottling. Typically higher production volume decreases cost further. Understanding the Value Stream and COGS are critical in Developing a Successful Winery Business Model. www.WineryThink.com Slide 18: 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 Negociant 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: 98 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: October 11, 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 100,000 Case JIT Negociant 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 Slide 3: 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 JIT Negociant Wine COGS : The Make Up of JIT Negociant Wine COGS Operations Staff Production Facilities Overhead Grapes Harvest Processing Bulk Wine Storage and Aging Bottling Warehousing www.WineryThink.com Bulk Wine COGS: Staff and Facility Component : COGS: Staff and Facility Component Winemaker costs $1.00 per case All Other Production Staff costs Included in Custom Crush Pricing. For This Analysis, Assume Facility Costs as: Typical Napa/Sonoma Custom Crush Pricing Captured in Custom Services Pricing 100,000 Cases Total Production 25,000 Case per Lot/Variety Bottle each variety 4 times a year www.WineryThink.com Slide 6: www.WineryThink.com COGS: Bulk Wine Component Turrentine Wine Brokerage Market Update http://www.turrentinebrokerage.com/newsletter/ Napa Valley Cabernet Sauvignon: $21.00/gallon Note: Consider the Source of Bulk Wine Slide 7: www.WineryThink.com COGS: Bulk Wine Component Minimum requirements to label a wine “Napa Valley Cabernet Sauvignon” 85% Napa Valley Appellation 75% Napa Valley Cabernet Sauvignon Extended Blend Percentages Napa Valley Cabernet Sauvignon 75% $21.00 $15.75 Napa Valley Merlot 10% 10.00 1.00 California Ruby Cabernet 15% 3.00 0.45 Weighted Average per Gallon $17.20 $17.20/gallon X 2.5 gallons/case = $43.00/case COGS: Production Assumptions : COGS: Production Assumptions Napa/Sonoma Custom Crush Pricing Variable, Based on A La Carte Menu Assumes Standard Production Techniques Time Period: Storage/Aging 4 – 6 Months Warehousing 1 Month Bottle Age, 3 Month Selling Cycle Standard Packaging www.WineryThink.com COGS: Harvest Component : COGS: Harvest Component Est/cs Total Harvest Component $ 0 www.WineryThink.com COGS: Bulk Storage and Aging Component : COGS: Bulk Storage and Aging Component Est/cs Tank Storage 2.15 Oak Chips 0.21 Micro Oxidation 0.24 Rank/Blend to Tank 0.51 DE Filtration 0.29 Pad Filtration 0.29 Laboratory Analysis 0.12 Samples 0.01 Total Storage/Aging Component $ 3.82 www.WineryThink.com COGS: Bottling Component : COGS: Bottling Component Est/cs Bottling $ 2.30 Glass 6.83 Corks 2.43 Capsules 2.13 Labels 1.95 Total Bottling Component $15.64 www.WineryThink.com COGS: Warehousing Component : COGS: Warehousing Component Est/cs 4-Month Bottle Aging/Selling $ 0.90 www.WineryThink.com COGS: Other : COGS: Other Est/cs Alternating Proprietor /Admin. $0.13 www.WineryThink.com COGS: Napa Cabernet Sauvignon : COGS: Napa Cabernet Sauvignon Est/cs Staff and Facility $ 1.00 Bulk Wine 43.00 Harvest 0 Storage & Aging 3.82 Bottling 15.64 Warehousing 0.90 Alternating Proprietor 0.13 Total COGS $64.49 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 $ 7.50 – $10.00/btl Retail Consumer $15.00 – $20.00/btl 2008 Napa Cabernet Sauvignon Value Stream - Negociant www.WineryThink.com Distribution $5.37 COGS ($64.49 / 12 btl/cs) 3-Tier COGS: Summary : COGS: Summary Just In Time Negociant Wineries generally purchases bulk wine rather than grapes. Bulk wine is available because of excess supply and/or quality selection processes at other wineries. Buying wine further along the development continuum frequently decreases production cost and time required before bottling. Typically higher production volume decreases cost further. Understanding the Value Stream and COGS are critical in Developing a Successful Winery Business Model. www.WineryThink.com Slide 18: Jack Ryno www.WineryThink.com See more Winery Biz 101 videos at: www.WineryThink.com