BCG Capabilities Book 020216 PV
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Transcript of BCG Capabilities Book 020216 PV
An introduction to
BACCHUS CONSULTING GROUP
Business Consultants to the Wine Industry
February 2016
Confidential
Preface The following material has been prepared to answer quesJons about Bacchus ConsulJng Group. This booklet outlines our experiences,
capabiliJes, and methodology. We welcome the opportunity to discuss more specifically how we can assist you in achieving your unique objecJves.
Prepared: February 2016 2 Confidential
Content Who is Bacchus ConsulJng Group? / page 4 Our ConsulJng Philosophy / page 5 Our Focus / page 6
Winery ConsulJng / Advisory Service / page 7 Interim Management Services / page 13 Finance and Fundraising Advisory Service / page 14
How Does Bacchus Differ From Other ConsulJng Firms? / page 15 Select Clients of Bacchus ConsulJng Group / page 20 Bacchus Consultants / page 21
Prepared: February 2016 3 Confidential
WHO IS BACCHUS CONSULTING GROUP?
Profile Founded in 2002
Network of wine industry professionals Offices in Napa, San Francisco, and Millbrae, California
Services Provided
Winery ConsulJng/Advisory Services Winery Interim Management Services
Finance and Fundraising Advisory Services
Philosophy of Holistic Approach and Experience Bacchus ConsulJng Group’s holisJc approach combines experJse across a range of funcJonal areas with a strategic perspecJve and cornerstone financial model that
reflects our extensive wine industry experience.
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O U R C O N S U L T I N G P H I L O S O P H Y
Prepared: February 2016 5 Confidential
BCG is defined by a holisJc, mulJ-‐funcJonal consulJng approach as opposed to pure specialty consulJng.
BCG underpins all of its consulJng services with a custom proprietary financial model based on each client’s specific needs and goals.
PROPRIETARY FINANCIAL MODEL EXPERIENCED
CONSULTANTS
STRONG INDUSTRY FOCUS
HOLISTIC APPROACH
O U R F O C U S
CONSULTING/ADVISORY SERVICES
INTERIM MANAGEMENT SERVICES
Prepared: February 2016 6 Confidential
FINANCE & FUNDRAISING ADVISORY SERVICES
CONSULTING/ADVISORY SERVICES
Our consulJng services focus on assisJng wineries in the following funcJonal areas:
BUSINESS / STRATEGIC PLANNING
WINERY OPERATIONS OPTIMIZATION
DIRECT TO CONSUMER
WHOLESALE
FINANCE / ACCOUNTING
Prepared: February 2016 7 Confidential
CONSULTING SERVICE: BUSINESS / STRATEGIC PLANNING
Strategic planning and the creaJon of a custom financial model are the first steps in the development of a results-‐based accountable organizaJon. The strategic planning process guides clients in an objecJve evaluaJon of the following quesJons: • Where are we? • What do we have to work with? • Where do we want to be? • How will we know we got there?
As a result of the strategic planning process, a client will have: • A fact-‐based plan that takes into account market realiJes and the client’s
current situaJon. • Focused strategic and operaJonal acJons to achieve short-‐term and long-‐
term goals. • A targeted strategic plan with quarterly goals and metrics.
Prepared: February 2016 8 Confidential
CONSULTING SERVICE: WINERY OPERATIONS OPTIMIZATION Winemaking is an art, a self-‐expression of terroir and the winemaker. OpJmizaJon ConsulJng is the discipline of adjusJng a process so as to opJmize some specified set of parameters without violaJng some constraint. The most common goal focuses on maximizing a winery’s unrealized potenJal. Our consultants review the entire process or a section of the process and make recommendations that are tied back to our proprietary financial model. Bacchus is focused on serving clients facing different types of operaJonal challenges which can be broken down to a financial metric or lack thereof. Our operaJon reviews can be grouped into the following categories:
• Winegrower Management • Winemaking efficiency and controls • Bocling efficiency and controls • Human Capital
Prepared: February 2016 9 Confidential
CONSULTING SERVICE: DIRECT TO CONSUMER SALES The new life blood of wineries is DTC; it is where wineries can tell their story directly to consumers. Growth in the DTC channels has been tremendous the past 10 years; however, as Silicon Valley Bank notes, “The top 20% of wineries outperform the bocom 80%.” Our consultants first develop an integrated high level plan and then pull in operational subject matter experts to develop a tactical plan that is tied back to our proprietary financial model for a ROI review. Bacchus focuses on three main revenue centers:
• TasJng Room (On –Property) • Wine Club (On –Property) • Other DTC
• Tele-‐Sales (Off-‐Property) • Internet driven sales (Off –Property) • On-‐ and Off-‐site Events (depending on winery assets)
Prepared: February 2016 10 Confidential
CONSULTING SERVICE: WHOLESALE SALES There is a symbioJc relaJonship between Wholesale and DTC in the sale mix of a winery’s revenue profile. The wholesale channel has changed; managing this channel takes a specific skill set that is foreign for many wineries. Our consultants first develop a national wholesale footprint map and overlay it with a “market by market profitability” template. Successful existing practices are paired with new tactics developed by leading industry experts, all of which are tied back to our proprietary financial model for a ROI review Bacchus focuses on:
• Modeling wholesale channel profitability net of D/As, SPAs and other sales expense for each distributor/market.
• CreaJng the “Sales Process” for the Wholesale Channel, which includes reviewing distributor performance.
• CreaJng the “Top 500 Retailers and Restaurants” list which drives the Direct to Trade CommunicaJons Plan.
Prepared: February 2016 11 Confidential
CONSULTING SERVICES: FINANCE and ACCOUNTING Our proprietary Financial Model is the cornerstone our consulJng pracJce; it is the tool and fact base we use to evaluate each client’s current and future situaJon. Through the model, we develop a fact-‐based understanding of each client’s current situaJon and how to grow their business. We have developed a comprehensive model that evaluates the following inputs to help us produce an accurate picture of the business:
• Current and Future Sales Trends • Current Inventory (Bulk and Bottled) • Annual Grape Intake Sheet
Deliverables include the following:
• Long Term Plan (5-‐Year forward-‐looking model) • P&L Statement, Balance Sheet, and Cash Flow Analysis • Margin Analysis by Channel by SKU • “What if Scenario” funcJonality to measure impact of different strategies • The Monthly Management Package
Prepared: February 2016 12 Confidential
INTERIM MANAGEMENT SERVICES
Interim management is the “loaning” of human capital. Our team works in a variety of situaJons, from an organizaJon that needs help due to financial difficulJes (turnaround situaJon) to organizaJons that are growing and need the help of a seasoned execuJve on a part-‐Jme basis. These engagements may range for two days per week to full months and beyond. The posiJon may include:
Interim CEO / Interim CFO / Interim CMO / Interim Controller / Interim DTC Professionals
Prepared: February 2016 13 Confidential
FINANCE AND FUNDRAISING ADVISORY SERVICES
Our specialized finance experience includes the following areas:
DEBT FINANCING • 1st Lien
• Mezzanine
PRIVATE EQUITY
ALTERNATIVE FINANCING • EB -‐ 5
• Crowdfunding and DPO
TURNAROUNDS AND RESTRUCTURING
COURT APPOINTED RECEIVERSHIP PROJECTS
Prepared: February 2016 14 Confidential
HOW DOES BACCHUS DIFFER FROM OTHER CONSULTING FIRMS? “The Bacchus Process” assist clients by: Providing a network of consultants who have experienced as General Managers or FuncJonal Managers in well-‐known, successful wineries. Customizing our proprietary financial model to provide clients with a quanJtaJvely sound system for evaluaJng their current situaJon and planning for future growth. Providing objecJve analysis in areas where outsiders can be more effecJve, especially in external assessments of the winery operaJons, customers and compeJJon. Energizing and focusing the team process. Bacchus can facilitate an effecJve process, diffuse poliJcal tension, and create enthusiasm through the experience of success. Synthesizing the results. The most successful strategy efforts pull together findings into a coherent and concise “story” that the team convincingly communicates. Bacchus provides this synthesis. ImplemenJng our system which has proven to reduce the stress of transiJons and has led to faster, economically sound decisions, companywide alignment, and competent execuJons.
Prepared: February 2016 15 Confidential
T H E B A C C H U S P R O C E S S
Are my goals well defined? Personal aspirations
Tolerance for risk Size or type of business we want to be
Where are we going? Access to capital
Do we have the right strategies? Clear definition
Profitability and potential for growth Rate of growth
Strategies for the plan
Do we have the right tactics? Can I execute the plan? Resource deployment
Organizational infrastructure The Winery Executive’s role
If the answer is yes ...
If the answer is no ...
The Business Plan
The Opera0ng Plan
If the answer is yes ...
If the answer is no ...
Define the Goal
Prepared: February 2016 16 Confidential
T H E B A C C H U S F R A M E W O R K
Phase I Gather the Facts by FuncJon Area
&
Analyze, Synthesize, and Develop Strategic IniJaJves by FuncJonal Area
Phase II Aggregate and Integrate into the Business Plan
& Build Financial and OperaJng Model
&
Develop TacJcs and the OperaJng Plan
Phase IV ExecuJon of Project Plan
&
Interim Management to Execute the Plan
Phase III PresentaJon of Deliverables to Management and Advisor
Prepared: February 2016 17 Confidential
T H E B A C C H U S F R A M E W O R K
VINEYARD WINEMAKING MARKETING and BRANDING
BUSINESS PLAN
FIN MODEL
OPERATING PLAN
DIRECT TO CONSUMER
WHOLESALE SALES
Gather the Facts by Function Area &
Analyze, Synthesize, and Develop Strategic Initiatives by Functional Areas
Phase I Phase II
Prepared: February 2016 18 Confidential
T H E B A C C H U S F R A M E W O R K
Phase I Gather the Facts by FuncJon Area
&
Analyze, Synthesize, and Develop Strategic IniJaJves by FuncJonal Area
Phase II Aggregate and Integrate into the Business Plan
& Build Financial and OperaJng Model
&
Develop TacJcs and the OperaJng Plan
Phase IV ExecuJon of Project Plan
&
Interim Management to Execute the Plan
Phase III PresentaJon of Deliverables to Management and Advisor
Prepared: February 2016 19 Confidential
SELECTED WINERY CLIENTS
Prepared: February 2016 20 Confidential
Prepared: February 2016 21 Confidential
Avi Gallant has over 15 years of experience providing financial analysis and business consulJng services to wine industry clients. Specific areas of experJse include building complex business models that incorporate all aspects of winery supply and demand, project-‐comprehensive financial statements, and cost of goods sold. He has also developed several winery acquisiJon models that have resulted in posiJve cash flow and equity for the acquirer. Throughout his career, Avi has worked and consulted in accounJng, finance, and sales operaJons for Napa and Sonoma wineries, including Huneeus Vintners, Diageo, Icon Estates, Ravenswood, Beringer, Artesa, and others. He earned a Bachelor of Science degree in Finance from the University of Maryland.
AVI GALLANT
Quinton is Managing Director and Founder of Bacchus ConsulJng Group. Concurrently, Quinton is the Proprietor of Bacchus Wine Shop (BWS), a full-‐service retail merchant of fine wines and crao beers located in Millbrae, CA. Prior to BCG and BWS, Quinton was Managing Director of Bacchus Capital Management, a niche private equity firm that specialized in wine industry investments. Quinton’s winery management experiences include: President and NaJonal Sales Manager at Panther Creek Cellar, General Manager at Artesa Winery, Business Manager at Etude Wines and General Manager at Bonny Doon Vineyards. Prior to the wine industry, Quinton worked at The Coca-‐Cola Company and Bank of America. He holds an M.B.A. from J.L. Kellogg School of Management at Northwestern University and B.S. degree in finance from California State University Long Beach.
QUINTON JAY
CONTACT
Prepared: February 2016 22 Confidential
Director Financial Analysis T: 707-812-8898 [email protected]
Managing Director T 415-828-8898 [email protected]
AVI GALLANT
QUINTON JAY