Viña Indómita Mission: To differentiate from other Chilean wineries so their wine can be sold in export or domestic markets. Casablanca Valley vineyard Viña Indómita • It is a privately-owned vineyard. • Designed in 1999 by Chilean-Italian architect Pablo Scarella • It is home to the #3 restaurant in Chile, with top chief Oscar Tapia. • The firm consists of two vineyards: – Casablanca – Maipo Valley Maipo Valley Vineyard • It is located in central Chile, not to far south from Santiago. • It consists of 988 acres. • Its location is ideal because it has a very dry climate with little rain. • This vineyard specializes in making red wine. – Cabernet Sauvignon – Merlot – Carmernére Casablanca Valley Vineyard/Winery • This Vineyard and Winery is located 66 kilometers northwest from Santiago, very close to the Pacific Ocean • It consists of 494 acres. • Due to its distance to the ocean, Casablanca experiences moderate temperatures. • This Vineyard specializes in making white wine: – Chardonnay – Sauvignon Blanc Facts about the Wine Industry in Chile • Chile has many wine-growing valleys and districts that each specialize in different wines. • Their wine was mostly influenced by the French. • Some notable wine companies are Concha y Toro and Santa Rita. • Concha y Toro is the largest producer of wine in Chile is covering nearly 17,300 acres of land. • Santa Rita has been investing money in new technology for a higher quality of wine, which is receiving international acclaim. The Wine Industry: Major Product Categories • The basic product categories within the Chilean wine industry is quite simple. It is broken down to: – Red wine: made from red grapes – White wine: made from green grapes • However, there are many different types of red and white wines that a producer can make. – example: Chardonnay is a white wine, while a Merlot is a red wine. Competitors • Due to the limited basic product categories and the boom of the Chilean wine industry since the 1990’s, competition within the industry is fierce. • With such fierce competition it drives firms to differentiate their wine. A couple of the big firms that do this are: – Santa Rita: investing money for a higher quality of wine. – Cono Sur: has began making modern wine. – Cousiño Macul: began in 1856 and has stressed the family brand name. • Viña Indómita is a young and prosperous company. However, due to their age they are not in direct competition with any of these big players…yet. Challenges and Opportunities • Challenges: – Since creating wine is natural process any weather related problems or natural disasters (earthquakes) can affect the profitability of the industry. – It is hard for a company to differentiate themselves because of the intense competition • Opportunities: – The wine industry is a growing industry within Chile and many companies, such as Viña Indómita, can now enter the market and attempt to succeed. Significance to Us • CBA: – It is significant to CBA students, because it is such a growing industry. We are learning in our MCE classes the fundamentals of business. More precisely, how to differentiate a company’s product to succeed in a competitive market. These tools can be directly implemented within this industry. • SSOE: – It is significant to SSOE students, because in order to differentiate the firms are going to have to invest in new technologies and machines that will give them an edge in the industry. – It gives SSOE students the chance to take a first-hand look at environmental factors and other variables that are relevant to this particular industry Background • Wine was not native to Chile but was introduced by the Spaniards. • Due to the Pacific Ocean on the west and the Andes on the East, wine has been able to thrive in the Chile without pests and disease. • In Chile, there are 14 principle regions for producing wine. Viña Indómita produces in the Maipo and Casablanca valleys. • Airport customs in Chile prevent disease and other fungi to affect agriculture in Chile Technology • Wines fermented in climate controlled stainless steel tanks. • Vineyards use unique barrel cellar partly constructed in the side of the hill where the wine is matured. – Temperature and humidity are self-regulated. • Due to the large amounts of rain in regions close to the Andes, many vineyards switched to a drip irrigation system. Economy • 5th largest exporter of wines in the world, and is the 9th largest producer in the world. • Policy makers have been trying to channel more capital into wine. – Creating more competition between companies • Pisco is the main component of growth in consumption – National drink of Chile Social Customs • Wine is usually drank at mealtimes. • Wine and other spirits are often given as gifts. • If wine is served during dinner, it is more of a social gathering • No wine usually means a more business-like atmosphere Wine & Engineering • Harvesting & Destemming -Mechanical Harvesters straddle grapevine trellises and, using firm plastic or rubber rods, strike the fruiting zone of the grapevine to dislodge the grapes from the rachis. • Most of the harvesting is done by people. • Paddles above the small circular slots rotate to remove the larger chunks of stems. Grapes are pulled off the stems and fall through the holes. • Crushing & Primary Fermentation -Grapes are put into a machine consisting of two rollers which crush them and squeeze out the juice. Engineering Continued Temperature is regulated to obtain the desired amount of alcohol percentage and sugar. Pressing • Pressing is the act ofpressure to grape in order to separate juice or wine from grapes and grape skins. Secondary Fermentation and Bulk Aging • Cold stabilization to prevent appearance of tartrate crystals after bottling • Wine is kept under an airlock to protect the wine from oxidation. This usually takes place in large stainless steel vessels or oak barrels. Wine & Engineering Continued • • • • • • Raw Materials • Grapes Transportation • Trucks/Trains • Shipping Oversees Variables • Acreage • Machinery • Workers • Moldy Grapes Safety • Worker Safety • Customer Safety Environmental Factors • Weather/Climate Skills & Do they need to be Engineers? • Workers must know when grapes need to be picked. • No, engineers are only needed to make the equipment. The workers at the vineyard just oversee the production. Questions for Professionals • How big is the Viña Indómita vineyard compared to other Chilean vineyards? • Did the recent earthquake have any impact on your winery? • How does business life at Viña Indómita reflect my personal opinions on how a business should be run? • Is diversity an issue at Viña Indómita? • How many rivals do you compete against, who is your main rival? • Being a Privately owned business what are the advantages and disadvantages? • What is your favorite wine to make? To drink? Questions for Students • • • • How much wine do you drink typically? What is your favorite wine? Have you ever worked on a vineyard? When do you normally drink? Do you drink at meals? • Is drinking encouraged?