1. If you could enter either the value segment or the premium segment of the wine industry, which one would you choose? Why?
2. What insights can you provide about the threat of buyers in the premium wine industry?
3. If Passalacqua were to purchase the East Side Building as offered and sell 2000 cases per year, what will be the payback period? Make reasonable assumptions to calculate.
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While steadily increasing demand for wine indicates an attractive market, most growth occurs in the premium segment. ... 1.3 In the premium segment, the relevant customers that buy rather expensive wine lay emphasis on the brand in their purchase decision.
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