Wexford njtc-quebec-wine-industy-io t-v1.10 (1) (1) (1)

Tomorrow's Wine Industry
Leveraging Technology to Improve Quality and Business
Wexford Systems, LLC
Improving Your Business

© Copyright 2016 Wexford Systems, LLC 2

Mitigate risk via 24x7 monitoring of quality of wines and spirits

Reduce uncertainty for you and your clients

Protect the reputation of your vineyards, wines and spirits

Reduce loss – ultimately financial loss

Make a better product more predictably

Increase efficiency

Beat your competition

Do it better, faster, and with less expense

For the Wine Industry this means...

Increasing the likelihood of delivering a superb bottle of wine to
the table of fine diners.

Increasing the likelihood of winning satisfied, enthusiastic,
repeat customers.

Cross-selling additional bottles of wines to your now very
satisfied customers
Setting the Stage: A Scenario


Sommelier brings a fabulous bottle of wine to the table.

Sommelier opens the bottle.

The wine is bad...!

The outcome...?!

The loss...?!

Setting the Stage: A Scenario (cont.)

Sommelier is embarrassed.

Restaurant is embarrassed; their reputation is tarnished.

Restaurant is not reimbursed for loss. What's loss to broker or
distributor? Credibility?

Loss to vineyard's reputation? Credibility with distributor and
restaurants?


Host of dinner is embarrassed; he's angry; does the
customer return?
Your Challenges and Objectives...

Ensure quality, consistency, predictability, timeliness

Identify bad bottles of wine, upon receipt from Chateaux,
brokers or wholesalers before they're sold or before the
customer sees it.

How to mitigate these risks?


Identify where the bottle (or cask) went bad.

Identify how the bottle (or cask) went bad.

Reduce the number of bottles that go bad.

Improve the quality of your wine.

JIT-Green Supply Chains Audit Trail
How Do You Achieve That Objective...?


Everyone is talking about sensors

Everyone is talking about the Internet of Things (IoT)

The sensor is the tip of the iceberg.

A solution is a complex organization, structure, design, architecture of
elements.

Eliminate risk at each step in the process.

Collect data, monitor, ensure quality control (QC).

Ensuring continuity and consistency across the whole supply chain.

Unquestioned trust between entities across the supply chain.

Some Context and Details for the Wine
Industry

Wine vineyards require ~7+ years of growth for the required maturation of their vines to produce a
quality, superior harvest...,

With high sugar content to transform into the right alcohol content, yielding more income per ton.

All vineyards are 100% dependent upon exterior factors.

Human management husbandry.

Constant, consistent Spring-Fall, East-West sunshine at the right angles throughout a large part of
the day.

The right amount of rain waters, evening mist, fog, moisture (enables grapes to grow their internal
pulp which is the key to the creation of all wines).

A combination of rich quality soils, with traces of limestone out-cropping's, limestone pebbles mixed
within the alluvial soils provide the required nutrients for the development of hi-quality, superior, grand
crux wines.


The microscopic particles of diluted limestone, calcium are mission critical chemical ingredient off-set
neutralizing inherent tannic acids of the grapes exterior skin.

As they are absorbed from the earth via the vines subterranean root systems, which extend 6.0’-12.0’
into the soil.

Aspects of Your Industry

All aspects of industry operations for wine, beer, spirits

Planting, monitoring growth, water drip lines, PH levels of soil

Forecasting most efficient harvesting times

Harvesting, QC, chemical testing for composition, sugar levels, PH levels of wine

Blending, tasting, brewing, distillery blending, aging in oak casks,

Master blender’s human smell, taste testing, 
Bottling, storage, distribution, global
shipments to...

Brokers, wholesalers to...

Upscale, high-end country clubs, bars, restaurants, individuals


Cost accounting

Asset management
How Do You Do This...?

Sensors provide...

Near real-time data capture, monitoring, analysis and feedback
to your business operations

Near real-time decision making or adjusting operations to
achieve your objectives


Still need skilled, expert, knowledgeable, experienced human
beings, sight, small, taste but...

Technology can aid, augment humans and even do some
things better, faster and more consistently...
Potential Uses of Sensors

Monitoring rainfall, pH levels of soils

Feed into drip system, increase efficiencies

Forecasting the most efficient time to harvest – best time to pick grapes based on
sugar content


Measuring chemical composition, sugar content of grapes, pH level of wine

Blending, tasting, brewing, distilling, aging within high quality oak casks

Sensor in oak casks to measure, monitor sugar level, alcohol level, tannic acid level
and off-setting pH levels.

Sensors inside each bottle are designed to measure, monitor and record the quality
and integrity of the wine from the chateaux, to the transportation, to the warehouse,
to the distributor, to the importer, to the buyer and ultimately to the customer.
This Is Feasible Today

We can do this for any kind of spirits, liqueur, wine, beer, etc.


Using sensors..., 
Which are everywhere.

Technology has advanced.

Much research and engineering is being done.

Part of the age of Big Data and the Internet of Things (IoT).

Is this just a fad?

What does it take to really leverage this “technology”?

Sensors In the Wine Industry

Add data from the article that Jay sent me.


Leveraging Sensor Technology

The vineyard's wine expert has a cold and can't smell. What
happens?

The sensor is more consistent, more reliable, more predictable

Volume and numbers – large numbers of sensors are
inexpensive, pervasive, responsive, precise and automated.

Humans with such advanced and developed olfactory skills are
rare and expensive; few humans can do this work.

A Favorable Outcome Scenario

Revisiting the scenario at the beginning of the presentation (slides #4 and #5)...

Your sommelier suggests a wine to his dinner party.

The sommelier knows the bottle is good because of the sensor data he reviewed as
he selected the bottle, prior to bringing it out to the table.

Your customers are very happy.

The restaurant is happy - not embarrassed!

The “Maître d' ” receives information about all food ordered, associates it with wine
and spirits consumed.

The restaurant builds a customer profile for future visits (details to be discussed).

Customers feel well-respected and well-treated


Customers are flattered by the experience and the personal touch
What Is Your Risk...?

If you serve a bad bottle of...
VINEYARD PRICE PER BOTTLE
Screaming Eagle Winery $500,000 US
Chateau Cheval Blanc $304,375 US
Hiedsieck $275,000 US
Chateau Lafite $232,692 US
Chateux Margaux $225,000 US
Chateau Mouton Rothschild $225,000 US
Penfolds $168,000 US
Chateau Lafite Rothschild $160,000 US

Romanee-Conti $123,900 US
Chateau d'Yquem $119,000 US
What Is Your Gain...?

If you serve a superb bottle every time...

Greater quality control (QC), consistency, predictability

Beating your competition

Reduction of
losses 
Greater


Repeat satisfied customers

Improved reputation
The Potential In Your Industry...
COUNTRY YEARLY CONSUMPTION **
France 43,633,000
Italy 41,580,000
Spain 33,393,000
efficiency 
Greater
profit....

Increased market share

USA 18,740,000
Argentina 15,473,000
China 13,000,000
Australia 11,090,000
Chile 10,463,000
South Africa 9,665,000
Germany 9,661,000
TOTAL MILLION HL 187,864,600
** Million Haut Liters (MHL)
The Potential In Your Industry (cont.)...
COUNTRY YEARLY CONSUMPTION **
France 55

Italy 55
Portugal 50
Switzerland 55
Denmark 38
Germany 38
Argentina 38
Netherlands 31
Australia 29
UK 29
TOTAL LITERS PER PERSON PER ANNUM 408
** Liters per person per annum
How Do You Go From Vision, Concept,
Idea...

To Realization...?!

What Does It Take...?!

More than just sensors...

A complete well thought out, planned “end-to-end” system.

Each application is unique despite conceptual similarities.

The ability to see holistically the totality of the whole business,
industry, pragmatic considerations, practical constraints,
realistic goals and roadmaps to incremental progress.
Who Will Do This Work...?!


Who will build a solution leveraging the right combination of
technology?

Not the sensor designer

Not the electrical engineer

Not the programmer

Not the chip manufacturer

Who Will Do This Work (cont.)...?!

Seasoned strategic visionaries who understand the business,
industry, applications, finance.

Strategists who can create viable business models.

Enterprise architects who understand the integration and
interdependencies of technology, business, strategies.

System architects who can create solutions from an enterprise
architect's vision.

Individuals who can successfully put the pieces together.

The Wine Industry

Benefits of Sensors and the IoT

Benefits in each area of operations across the entire industry.

Benefits in every stage of the supply chain.

Integration across all systems of the industry operations.

Greater insight into the full range of industry operations.

Tighter span of control over all operations.

Faster response times to crisis situations based on sensor-supplied
data.


The Viability of Sensors and the IoT

The applications are virtually limitless.

Applications exist in all industries.

Technology is advancing rapidly.

The solutions are as limitless as the creativity of the technologists and
strategists.

The sensors themselves are simply the tip of the information spear.

© Copyright 2015 Vartan Piroumian
The Vision of the IoT

Sensors, data collection

Monitoring

Big data

Statistics

Forecasting

Trend analysis 
Demographics

Quality Control (QC)

Efficiency

The IoT Is...

Sensors

End-to-end systems architecture

Standards

Solutions

A new generation of possibilities for the organization and
management of data and businesses, people and processes

Order out of chaos
Wexford Systems Is...


Jay LaTournerie - Economics, Finance, Business Development,
Consulting
●
Vartan Piroumian - Software Systems Architecture, Enterprise
Architecture, Consulting, Strategy (business and technology
consulting)

Wexford Systems Industrial References

Wexford Systems marquis projects

Real system implementations

Recommendations

Reference 1: EZ Pass New York City MTA
TBTA

EZ Pass 1988 - 1990

$20 million program

50-year old public authority

Problem: loss of 30% receivables due to internal theft = $180 million per annum

Recommendation: EZ Pass system at cost of $20 million installed in 2 years

Outcome: installation of EZ Pass system eliminated 100% of historical internal and
external theft

9-1 return; break even after 6 weeks

Core enabling technology was sensor-based architecture


Concept now utilized/installed across the United States and Canada, bridges, subway,
freeway toll roads, turnpikes, etc.
Reference 2: Sea-Land-Air Transportation

Monitoring sea-, land- and air-based container transportation.

Problem: loss due to internal and external theft of physical containers (ship
“conexes” and air transport “igloos”)

Recommendations made to Swiss Rei and Lloyds of London re-insurance companies
to reduce insurance payout liability.

Recommendations made to major sea-land-air transportation and shipping carriers to
improve ability to track, improve logistics, improve security, improve accounting and
accountability and reduce liability, risk and insurance claims.


Recommendation: installation of complete system built around sensors to identify,
account, track and monitor containers.
Reference 3: Fuel Management System

Analyzed and recommended solution to largest sand-gravel producer in Texas and
Oklahoma

Outcome: lack of interest at the time. Losses, liability, inefficiencies, security risk still
extant today.

Recommendation: installation of sensor-based fuel management system (FMS)
designed to monitor 52 10,000-gallon fuel tanks in near real time


Problem: internal theft and “shorting” of delivery of fuel; 30% of all fuel delivery was
stolen

Outcome: eliminated 100% of theft; saved $27 million per annum in historical fuel
losses


Reference 4: New York City Public Housing
Authority

Problem: No monitoring of fuel delivery of #2 heating oil for public housing.

Recommendation: fuel management system (same system that was successfully
installed in Texas)

Outcome: housing authority chose to forego implementation (they are still losing
money 12 years later).
Wexford Systems Capabilities...


Advisory

Consulting

Conceptualization

Problem Solving

Creation of business vision, management thereof

Production of viable business models

Creation of development plans

Management of ventures

Overseeing operations

Why Wexford Systems?

Proven track record with sensor-based systems.

Ability to create targeted business solutions

Understanding of the business proposition

Understanding of state-of-the-art technology

Understanding of strategy – the integration of business and technology
– applying state-of-the-art technology (Wexford provides the “how”)

Realization of solutions


Understanding of the right business model
Example for the Wine Industry?

Existing sensor technology used by the wine industry

The solution involves more than the sensor technology

Other points...?


Realized better, faster, at less expense

Experience

THANK YOU...!
Merci mille fois....
Thank you very much....

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