Viña San Pedro (VSP) Harvard Case Solution & Analysis

Products Produced by VSP

VSP made a full go of wines, from the Gato brand at the low end to the grant winning Cabo de Hornos at the top end. For the most part, wines were named popular, varietal, and reserve. Like the other extensive wineries, VSP bought grapes from neighborhood cultivators to be made into Gato and other prevalent wines bound for the residential business sector. On the other hand, for the export market, it utilized just astounding grapes from its own particular vineyards. Moreover, it sent out some wine in mass to nations, for example, France where the expense of generation was higher and mass wine could be blended with wine of local source to include volume. Most nations permitted up to 10% of a wine to be of outside root while even being marked as locally delivered.

Gato

Gato wine was a prevalently evaluated wine that was sold both in the household and fare markets. For the residential business, it was created principally from obtained "nation" grapes and bundled in five-liter containers, plastic/cardboard compartments and cardboard one-liter "tetra-packs." Approximately 70% of VSP household deals were in Gato Tetra-Packs, 15% in containers, and 9% in flasks. The remaining 6% of local deals were packaged varietal and store wines.

Gato wine was not matured, yet it was somewhat bundled and sold when aging was finished. For the fare market, it was produced using high return grapes from the organization vineyards and bundled in jugs. The red wine was mixed from cabernet-sauvignon and Merlot grapes, while the white wine was a synthesis of sauvignon and chardonnay grapes. A normal hectare for the creation of Gato wines delivered something like 17.9 tons of grapes for every year and the organization evaluated that it needed about $1,560,000 in working capital for each million liters of Gato wine.

Varietal

Varietal wines were produced using a solitary mixed bag of grape and matured for a year in stainless steel tanks before being packaged and sold. The grapes utilized were from VSP vineyards that yielded about 12.7 tons for every hectare.

VSP varietal wines included Castillo de Molina, 35 Sur, a higher valued Gato, Siglo de Oro, and a Santa Helena Gran Vino.

Store wines in the VSP portfolio incorporated a Castillo de Molina, Las Encinas (an unique dry white store wine), and the highest point of the Santa Helena line, Seleccion del Directorio.

Reserve

Reserve wines were regularly a mix of a few diverse mixed bags of grapes, and again made just from grapes from VSP's own particular vineyards. These vineyards gained exceptional medication to raise the extent of grape skins to mash, since the skins conferred lavishness to the kind of the wine. These grapes, in this manner, were focused at specific interims to hinder development. Subsequently, these vineyards just delivered something like eight tons for every hectare. Hold grapes were handpicked and those bound for white wine were picked around evening time to diminish the included oxidation that happened with introduction to the sun. To include flavor, the wine was matured in vast oak barrels as opposed to stainless steel tanks. Store wines obliged a more drawn out maturing period, for the most part in either French or American oak barrels, contingent upon the flavor fancied. The wine was further matured in flasks to permit the tannins to mix into the wine. The wine was not sold for two years after harvest.

Premium Reserve

At the highest point of the scale was the premium store wine, Cabo de Hornos. While this wine was delivered, it permitted the winery to gloat of its wine-production proficiencies, a stature that was affirmed in worldwide wine rivalries. The little vineyard committed to the premium holds just delivered something like 10.7 tons for every hectare. Once more, these wines were matured in oak barrels and again in flasks by taking three prior years being sold.

Introduction to the Parent Company Compaña Cervecerias Unidas:

Compaña Cervecerias Unidas S.A. (CCU), a differentiated drink organization that worked essentially in Chile and Argentina, bought a majority stake of 48.4% offer in the VSP stock for CP$7.8 billion. In 1996, it finished an alternate ADR, along these lines it brought US$155 million up in extra capital. CCU imparts likewise exchanged on the Chilean stock trade. In 1998, CCU had offers of Ch$280 billion and was the prevailing player in the local brewery market with a 91% piece of the pie...................................

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