This case tests brainstorming and market analysis skills rather than quantitative analysis. The candidate should recognize the market shift from white to red wine consumption using provided exhibits, then justify Pinot Noir as the diversification choice based on growth rates, regional suitability, and versatility rather than profit margins alone.
Our client MJ Wineries produces wine in Sonoma Valley, California. MJ Wineries specializes in growing Chardonnay grapes and has won numerous awards for their famous full-bodied Chardonnay. Although MJ Wineries market share in Chardonnay remains strong, profitability has recently declined.
The CEO has hired your firm to recommend ways to immediately improve profitability.