• Save
Sula Vineyards
Upcoming SlideShare
Loading in...5
×
 

Sula Vineyards

on

  • 4,812 views

 

Statistics

Views

Total Views
4,812
Views on SlideShare
4,796
Embed Views
16

Actions

Likes
0
Downloads
0
Comments
0

2 Embeds 16

http://www.linkedin.com 12
http://www.slideshare.net 4

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Sula Vineyards Sula Vineyards Presentation Transcript

  • Charlie Fauroat Roland Oltmann Katie Schneider Vanessa Ochoa-Llamas
  • What’s the Problem
    • How will Sula continue to scale up volume as rapidly as feasible while maintaining its reputation for quality and its image?
    • Issues to Consider
      • Low Cash Flows
      • Poor Distribution
      • Low Market Share
      • Slow Inventory Turnover
    • Net Cash From Operating Activities
      • 2007 2006 2005 2004 2003
      • -276 -1351 -412 -485 309
      • (in thousands)
    • Distribution
      • Avg. Case Price - $54.96 (about $4.60/bottle)
      • Avg. Bottle Retail Price – $13-$15 (whites)
  • Domestic Market Share
  • Inventory Turnover
      • Avg. Time from harvest to sale of wines
    • Reds Whites/Rose
    • 2-3 years 6-10 months
  • SWOT
    • Strengths
    • Fastest growing market in Wine Industry (30% per annum growth rate)
    • Good Climate for Grape Growing
    • Women/Youth see health and sophistication in wine
    • Weaknesses
    • Drinking age (42% of population) is 25 years of age
    • Poor awareness of wine and infrastructure
    • Wine has an elite taste
    • Opportunities
    • Large domestic markets with increasing disposable income
    • Increased Tourism
    • Population changing lifestyle accepting new trends
    • Export potential to the rest of the world
    • Within the next few years about 100 Million will have reached drinking age
    • Threats
    • Religion: some view drinking as a “sin”
    • Whiskey is preferred alcoholic beverage
    • Advertising is banned for alcohol
  • Financial Analysis A B C 2006 2007 2008 2008 2008 Net Profit Margin .65% 2.84% 1.01% 3.87% 8.49% AR Turnover 5.24 5.39 3.16 4.9 4.94 Days to Collect 69.66 67.72 115.51 74.49 73.89 Current Ratio 1.85 1.7 1.81 1.97 2.11
  • Financial Analysis - Scenario C
  • What is Sula’s Big Hairy Audacious Goal?
    • Bypass Chateau Indage as the top selling wine in India.
    • Establish Sula as a premier new world winery
    • What’s necessary for this?
      • GO BIG OR GO HOME
  • What Are Its Options?
    • Forward integrate into distribution
    • Grow white wines and buy reds
    • Move into larger local markets (China, Korea, Russia, Japan, Hong Kong)
    • Diversify the product line (Brandy)
    • Follow scenario C
  • What It Should Do
    • Finance through debt
    • Continue educating consumers about wine
  • Alternatives
    • Sell
      • Go public
      • Be acquired
    • Lower Growth Targets
    • Acquisitions
  • Risks
    • Market Share
    • Selling business prematurely
    • Going public
  • Implementation Timeline
    • Immediately begin looking for investors.
    • Find local growers to source red varietals
    • Begin acquiring land for vineyard planting.
      • 1-5 years
    • Expand production facilities.
    • Acquire smaller established wineries
  • Questions