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Case on Freemark Abbey Winery

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Case on Freemark Abbey Winery
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Written Analysis and Communication

Individual Assignment No 1

Case Analysis Report on ‘Freemark Abbey Winery’

Submitted by

Name : Jyot N Patel

Roll No : 121127

Section : A

Institute of Management, Nirma University

July 12, 2012

Executive Summary:

This report encircles the problem faced by William Jaeger, co-owner of Freemark Abbey Winery. The firm produces premium quality wines made from high quality grapes. To produce quality grapes, the grapes need to be harvested when they have acquired proper sugar and acidity levels. Due to approaching storm, William is forced to evaluate the future options so that he can arrive at the right decision about harvesting the grapes. For William, there is a choice to be made between reputation and short term profits of winery. Different probable cases are evaluated which further help arrive at the apt decision.

Main Report
Situational Analysis: Freemark Abbey Winery was situated in St. Helena, California, in the northern Napa Valley. The winery produces premium quality wines made from best quality grapes. Mostly it produces Cabernet Sauvignon and Chardonnay. From the total production of 25000 wines, it produces 4% wines with Riesling cases and 2% wines with Petite Syrah cases. Wine is produced when the fruit sugar present in the grapes is converted by yeast into equal proportions of alcohol and carbon dioxide. The winemaker needs to take care of the balance between the levels of sugar and acidity of the grapes to produce premium quality wines, which in turn depends on quality of grapes. Grapes harvested at 20% sugar can have about 10% Alcohol, while grapes harvested at 25% sugar can produce wine with same level of alcohol plus 5% residual

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