Case Study: a Paso Robles winery boosts revenue and extends inventory with Mather Economics' depletion pricing analysis

Winery Company - Customer Case Study

Mather Economics worked with Winery Company, a Paso Robles, CA wine client, to better manage depletion of its cabernet sauvignon inventory and maximize revenue for its 2017 vintage. The company wanted to extend inventory from tasting room sales further into the sales year while improving pricing decisions.

Mather Economics used sales and inventory velocity data from the wine fulfillment system to build SKU-specific econometric demand models and estimate price sensitivity for the product. Based on this analysis, Mather Economics recommended a 20% price increase, which after six weeks showed no negative impact on the depletion curve and is forecast to generate an additional $8k in revenue above initial targets for the remainder of the vintage year.