Saved More Than 50% by Buying Grapes with Trellis

Situation

  • A large winery in California crushes 1,500 tons of Russian River Valley Chardonnay annually.
  • The client sources roughly 60% from their estate vineyards and contracted growers and purchases the remainder on the spot market.
  • Due to the supply and price fluctuations of Russian River Valley Chardonnay over the course of each vintage, the winery sought to optimize the timing and amount of their grape purchases in order to maximize quality and savings. Solution
  • The client joined the Trellis platform and, along with their other vineyards, integrated all of their Russian River Valley ranches.
  • Over the course of the season, the client tracked Trellis’ yield predictions for Russian River Valley Chardonnay, while keeping a close eye on the fluctuating price per ton.
  • While the winey normally secures their purchases in March, relying on Trellis’ prediction that Russian River Chardonnay would exceed 6.5 tons per acre, the winery decided to push off their grape purchase until mid-July.

Result

  • In March, Russian River Chardonnay prices stood at nearly $2,300 per ton. Had the winery sourced their grapes at this time, as in previous years, they would have spent $1.28M and been over supplied by nearly 300 tons.
  • Because the winery utilized Trellis’ yield predictions, they purchased the right amount of grapes later in the season, when prices had dropped to $1,800 per ton, spending just $600,000.
  • The winery saved 53% on their Russian River Valley Chardonnay purchases, were neither over or under supplied, and were able to crush and produce all of the grapes they sourced.

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