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• Teaching Note | HBS Case Collection | March 2018

  Sandlands Vineyards

  Benjamin C. Esty and Greg Saldutte

  Teaching Note for HBS No.718-438.

  Keywords: wine; winery; vineyard; competitive advantage; market attractiveness; Porter's 5 Forces; capital investment; industry attractiveness; Vertical Integration; entrepreneurship; performance analysis; Napa Valley; Agriculture; Entrepreneurship; Business Strategy; Competitive Strategy; Competitive Advantage; Vertical Integration; Segmentation; Food; Supply Chain; Industry Structures; Retail Industry; Food and Beverage Industry; United States; California; Napa Valley;

  Citation:

  Esty, Benjamin C., and Greg Saldutte. "Sandlands Vineyards." Harvard Business School Teaching Note 718-505, March 2018.  View Details

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• Case | HBS Case Collection | February 2018 (Revised March 2018)

  Sandlands Vineyards

  Benjamin C. Esty and Gregory Saldutte

  Approximately 80% of the wineries in the U.S. break even or lose money. An even greater percentage lose money on an economic basis (i.e., after a charge for the cost of equity). Tegan Passalacqua is a successful, young, Californian winemaker who specializes in making “old vine” wine (i.e., wine from vines that are at least 60 and up to 100+ years old). By day, he is the head winemaker at Turley Wine Cellars, a leading Zinfandel producer. In his spare time, however, he runs his own winery called Sandlands, which produces premium wines using historic, out-of-favor grape varieties such as Carignane, Mataro, and Chenin Blanc. Despite the odds, Sandlands appears to be succeeding. The question is why and whether his performance is sustainable. The case is set in December 2017 as Passalacqua was deciding whether to buy a building and develop a winery at a cost of up to $500,000. Because he already owns an old vine vineyard, and has limited resources, he must decide if this is the right investment to make next.

  Keywords: wine; winery; vineyard; competitive advantage; market attractiveness; Porter's 5 Forces; capital investment; industry attractiveness; Vertical Integration; entrepreneurship; performance analysis; Napa Valley; Agriculture; Entrepreneurship; Business Strategy; Competitive Strategy; Competitive Advantage; Vertical Integration; Segmentation; Food; Supply Chain; Industry Structures; Five Forces Framework; Retail Industry; Food and Beverage Industry; United States; California; Napa Valley;

  Citation:

  Esty, Benjamin C., and Gregory Saldutte. "Sandlands Vineyards." Harvard Business School Case 718-438, February 2018. (Revised March 2018.)  View Details

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• Supplement | HBS Case Collection | March 2018 (Revised March 2018)

  Sandlands Vineyards

  Benjamin C. Esty and Greg Saldutte

  Approximately 80% of the wineries in the US breakeven or lose money. An even greater percentage lose money on an economic basis (i.e., after a charge for the cost of equity). Tegan Passalacqua is a successful, young, Californian winemaker who specializes in making “old vine” wine (i.e., wine from vines that are at least 60 and up to 100+ years old). By day, he is the head winemaker at Turley Wine Cellars, a leading Zinfandel producer. In his spare time, however, he runs his own winery called Sandlands which produces premium wines using historic, out-of-favor grape varieties such as Carignane, Mataro, and Chenin Blanc. Despite the odds, Sandlands appears to be succeeding. The question is why and whether his performance is sustainable. The case is set in December 2017, as Passalacqua was deciding whether to buy a building and develop a winery at a cost of up to $500,000. Because he already owns an old vine vineyard, and has limited resources, he must decide if this is the right investment to make next.

  Keywords: wine; winery; vineyard; competitive advantage; market attractiveness; Porter's 5 Forces; capital investment; industry attractiveness; Vertical Integration; entrepreneurship; performance analysis; Napa Valley; Agriculture; Entrepreneurship; Business Strategy; Competitive Strategy; Competitive Advantage; Vertical Integration; Segmentation; Food; Supply Chain; Industry Structures; Retail Industry; Food and Beverage Industry; United States; California; Napa Valley;

  Citation:

  Esty, Benjamin C., and Greg Saldutte. "Sandlands Vineyards." Harvard Business School Spreadsheet Supplement 718-802, March 2018. (Revised March 2018.)  View Details

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