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  • February 2018 (Revised March 2019)
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Sandlands Vineyards

By: Benjamin C. Esty and Gregory Saldutte
  • Format:Print
  • | Language:English
  • | Pages:25
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Abstract

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; Market Attractiveness; Porter's 5 Forces; Capital Investment; Industry Attractiveness; Performance Analysis; 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 2019.)
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About The Author

Benjamin C. Esty

Finance
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Related Work

    • March 2018 (Revised March 2018)
    • Faculty Research

    Sandlands Vineyards

    By: Benjamin C. Esty and Greg Saldutte
    • March 2018
    • Faculty Research

    Sandlands Vineyards

    By: Benjamin C. Esty and Greg Saldutte
    • February 2018 (Revised March 2019)
    • Faculty Research

    Sandlands Vineyards

    By: Benjamin C. Esty and Gregory Saldutte
Related Work
  • Sandlands Vineyards By: Benjamin C. Esty and Greg Saldutte
  • Sandlands Vineyards By: Benjamin C. Esty and Greg Saldutte
  • Sandlands Vineyards By: Benjamin C. Esty and Gregory Saldutte
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