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McKinsey Hard Market Sizing Optimization Market Entry Location Selection

Opus Two

#Consumer #Consumer Goods #Wine & Beverages #Luxury Goods
ProHub Comment

This is an advanced market sizing and optimization case that tests both quantitative analysis (calculating vineyard acreage requirements) and qualitative strategic thinking (evaluating trade-offs between production capacity, brand reputation, and feasibility). The case requires candidates to balance competing priorities—maintaining production volume while preserving prestige—across multiple geographic options with different risk profiles.

Estimated Time 15 minutes
Difficulty Hard
Source Darden
50 / 100
Our client, Opus Two, is one of the most prestigious wineries in Napa Valley. The winery is renowned for crafting a single, exceptional wine – a Meritage Red Blend. Despite its reputation, Opus Two faces significant challenges due to climate change. Rising temperatures, extended droughts, and recent forest fires have made their location unsuitable for grape growing. As such, Opus Two is looking to relocate outside of Napa Valley and is seeking the firm’s help in choosing a new region and wine to produce. What factors should be considered when selecting a new location for Opus Two?

Clarifying Information

  1. What is a Meritage Red Blend? A Meritage Red Blend combines several grapes (vs. just one varietal like Pinot Noir) into a single wine. A portmanteau of “merit” and “heritage,” the name conveys high quality and tradition.
  2. What is the client’s goal? Opus Two is a passion project jointly owned by Darden’s Wine and Cuisine Club (WACC) and a sommelier from Philadelphia. Their primary goal is not to achieve a specific financial return, but rather to maintain their current level of production, quality of wine, and brand reputation.
  3. How does Opus Two sell its wine? They sell a limited supply of 10,000 cases (120,000 bottles) of wine per year to high-end restaurants all around the world as well as DTC online and in-person at the winery. A bottle sells for $500.
  4. When does Opus Two want to move? As soon as a new region and wine is identified.
  5. Has Opus Two identified any potential locations? Yes, we will see explore these locations later in our analysis.