New Products / Special Project Manager For California Valley Wine Company Essay

1663 Words7 Pages
Introduction

As the New Products/ Special Project Manager for California Valley Wine Company (CVWC), I am left with the responsibility of recommending a new product to correct the diminishment of sales and declining profitability to the New Product Evaluation Committee. I’ve gathered information to develop the following plan to address my recommendation based upon CVWC’s current situation.

Key Characteristics

• 1988 CVWC owned 1,600 acres of grapes mostly Chenin Blanc, Thompson Seedless, and Ruby Cabernet.
• The company marketed wines in 1.5 and 3.0 liter bottles which retailed for $3.59 and $6.79.
• The three wines sold were Chenin Blanc, Mountain Burgundy, and Mountain Rose.
• In recent years, the wine business in California experience particular difficulties.
• The highest-ever consumption level occurred in 1985 and 1986 at 2.43 gallons per capita.
• In 1987, for the first time in 25 years, per capita consumption of wine decreased due to the following: o Growing Health Consciousness in society o Greater awareness of physical problems associated with alcohol consumption o Stiffer DUI laws and a rising drinking age
• After 15 years of solid growth, total wine consumption (including coolers) in 1987 slipped to 581 million gallons.
• The number of California wineries grew from 240 in 1970 to over 600 by 1980.
• The wine market became flooded with inexpensive foreign wines, mainly from Italy, France, and Germany.
• In 1984, imports held 25.7 percent of the total wine
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