Tim Allen bio:
Deloitte & Touche, audit & tax, wine clients
La Crema, controller
Sonoma-Cutrer, CFO
Arrowood (Mondavi), operations director
Rosenblum Cellars, CFO
Kuleto Estate, president & CFO
1992 – 1996
1996 – 1997
1997 – 2002
2002 – 2004
2004 – 2008
2008 – 2009
Allen Wine Group
2009 – present
staff accountant
controller
1. accounts payable &
purchasing
2. accounts receivable & sales
3. payroll & human resources
administration
4. inventory reconciliations
5. DTC sales reporting
6. credit card sales
reconciliations
1. cost accounting
2. financial reporting and
management reporting
3. bank reporting
4. internal controls
5. CPA review support
6. tax return support
7. treasury management
8. fixed assets & depreciation
9. risk management &
insurance
10. bank reconciliations
11. sales tax & excise tax
CFO
1.
2.
3.
4.
5.
6.
budgeting & forecasting
strategy
bank relationships
investor relations
human resources
information technology
staff accountant:
1.
2.
3.
4.
5.
6.
accounts payable & purchasing
accounts receivable & sales
payroll & human resources administration
inventory reconciliations
DTC sales reporting
credit card sales reconciliations
departments
#
110
210
220
310
410
420
430
510
description
farming
winemaking
bottling
facilities
national sales, marketing & PR
direct to consumer
events
finance & administration
#
6105
6110
6205
6210
6215
6220
6225
6230
6235
6240
6245
6250
6255
6260
6265
6270
6275
6280
6285
6290
6295
6300
6305
6310
6315
6320
6325
6330
6335
6340
6345
6350
6355
6360
6365
6370
6375
6380
6385
6390
6395
6998
6999
7005
7010
7015
7020
account
salaries & wages
taxes & benefits
grape purchases
vineyard management
bottling
bulk wine purchases
capsules
contract winemaking
corks
custom crush
glass
labels
depreciation
insurance
intercompany property lease
lease & rent
property taxes
repairs & maintenance
utilities
advertising & public relations
commissions
contract wine sales
donations
meals & entertainment, clients (50%)
meals & entertainment, staff (100%)
printing
promotion & wine events
samples
travel
accounting
amortization
bad debts
bank charges
computer & IT
legal
licenses & fees
other outside servies
postage, shipping & freight
supplies & materials
tax preparation CPA
warehousing & storage
facilities allocation
inventory allocation
interest expense
gain/loss on fixed assets
other (income) expense
income taxes
110
farming
210
winemaking 220 bottling
5,000
5,000
5,000
5,000
9,000
(29,000)
5,000
5,000
5,000
5,000
5,000
11,000
(36,000)
facilities allocation:
20%
25%
5,000
5,000
5,000
5,000
5,000
5,000
5,000
(35,000)
410
national
sales,
marketing &
PR
310
facilities
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
(45,000)
-
-
-100%
420 DTC
430 events
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
-
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
9,000
-
5,000
5,000
9,000
-
65,000
79,000
19,000
10%
20%
20%
510 finance
& admin
5,000
5,000
2,000
5,000
5,000
5,000
5,000
32,000
5%
total
40,000
40,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
(100,000)
5,000
5,000
5,000
5,000
195,000
0%
#
account
4005
4050
4055
5005
cased wine sales
discounts
excise taxes
COGS - cased wine
cased wine gross profit:
4010
4015
4020
4025
4030
4035
4040
4045
5010
5015
5020
5025
5030
5035
5040
5045
grape sales
bulk wine sales
merchandise sales
events revenue
retail shipping revenue
custom crush revenue
tasting room fees
other revenue
COGS - grapes
COGS - bulk wine
COGS - merchandise
COGS - events
COGS - retail shipping
COGS - custom crush
COGS - tasting room pours
COGS - other
other revenue & COGS:
110
farming
210
winemaking 220 bottling
310
facilities
410
national
sales,
marketing &
PR
10,000
(1,000)
(1,000)
(1,000)
7,000
420 DTC
430 events
10,000
(1,000)
(1,000)
(1,000)
7,000
10,000
(1,000)
(1,000)
(1,000)
7,000
10,000
10,000
10,000
(1,000)
(1,000)
(1,000)
27,000
10,000
10,000
510 finance
& admin
total
30,000
(3,000)
(3,000)
(3,000)
21,000
10,000
10,000
10,000
10,000
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
35,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
(1,000)
72,000
a case of wine at $40 per bottle sold through:
price:
revenue
COGS
gross profit
distributor
CA
retail &
50% retail
2/3 retail
100% retail
$
commission
shipping
payroll & operating
net income
240
150
90
$
$
90
320
150
170
$
58
10
12
$
90
480
150
330
240
$
90
controller:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
cost accounting
financial reporting and management reporting
bank reporting
internal controls
CPA review support
tax return support
treasury management
fixed assets & depreciation
risk management & insurance
bank reconciliations
sales tax & excise tax
gallons:
wine
beginning
harvest /
crush
transfers,
blending,
topping
purchased
subtotal
wine1
wine2
wine3
-
-
-
sold
-
-
bottled
-
ending
-
-
dollars:
wine
beginning
harvest
crush
purchased
transfers,
blending,
winemaking topping
barrels
wine1
wine2
wine3
$
-
$
-
$
-
$
-
$
-
$
-
$
-
subtotal
$
$
$
$
sold
-
$
bottled
-
$
ending
-
$
$
$
$
-
1
Primary statements:
a.
Balance sheet
b.
Income statement
c.
Statement of cash flows
2
Case sales reports, by SKU and channel
3
Inventory balance reports
a.
Bulk wine
b.
Cased goods
4
AP & AR subledger reports
5
Budget v. actual reports
6
a.
Vineyard
b.
Winery
c.
Facilities
d.
Sales & marketing
e.
Finance & administration
Capital expenditures report
set regular reporting dates and close dates well ahead of bank dates. for example:
- month closed by day 15
- financial statements issued to management by day 20
- budget and forecast completed by November 30
2014
cases sold (9LE)
distributor
direct to consumer
total 9L cases sold
cased wine sales:
net revenue
revenue per case
$0.00
cased cost of goods sold
cost of goods sold per case
$0.00
gross profit
gross profit per case
gross profit %
$0.00
0.0%
50%
of FOB price
grapes, bulk wine & other:
revenue
cost of goods sold
gross profit
-
operating expenses:
sales & marketing
general & administrative
total operating expenses:
-
25%
15%
of net revenue
of net revenue
operating income (loss)
-
15%
minimum
interest expense
(gain) / loss on sale of assets
other (income) expense
income taxes
-
net income:
$
-
depreciation & amortization:
EBITDA:
$
$
-
cfo:
1.
2.
3.
4.
5.
6.
budgeting & forecasting
strategy
bank relationships
investor relations
human resources
information technology
cost per
varietal
CH napa
CH napa
CH napa
CH napa
CH napa
CH napa
CH napa
CH napa
vintage release cases FOB
2011
2012
2013
2014
2015
2016
2017
2018
10/01/13
10/01/14
10/01/15
10/01/16
10/01/17
10/01/18
10/01/19
10/01/20
160
1,903
2,970
3,720
4,090
4,500
4,950
5,450
$ 120
$ 120
$ 120
$ 120
$ 132
$ 132
$ 132
$ 145
case
$
$
$
$
$
$
$
$
60
60
60
60
66
66
66
73
bottle
price
price increase
$
$
$
$
$
$
$
$
20
20
20
20
22
22
22
24
10.0%
2014
cases sold, sales year:
2015 2016 2017 2018
160
474 1,429
740 2,230
927 2,793
1,020 3,070
1,122
10.0%
634 2,169 3,157 3,812 4,192
CS napa
CS napa
CS napa
CS napa
CS napa
CS napa
CS napa
CS napa
2011
2012
2013
2014
2015
2016
2017
2018
02/01/13
02/01/14
02/01/15
02/01/16
02/01/17
02/01/18
02/01/19
02/01/20
294
333
280
240
260
290
320
350
$ 180
$ 180
$ 180
$ 180
$ 198
$ 198
$ 198
$ 218
$
$
$
$
$
$
$
$
90
90
90
90
99
99
99
109
$
$
$
$
$
$
$
$
30
30
30
30
33
33
33
36
294
304
2011
2012
2013
2014
2015
2016
2017
2018
04/01/12
04/01/13
04/01/14
04/01/15
04/01/16
04/01/17
04/01/18
04/01/19
2
101
184
300
330
360
400
440
$ 150
$ 150
$ 150
$ 150
$ 165
$ 165
$ 165
$ 182
$
$
$
$
$
$
$
$
75
75
75
75
83
83
83
91
$
$
$
$
$
$
$
$
25
25
25
25
28
28
28
30
25
220
10.0%
20
237
23
265
10.0%
598
PN sonoma
PN sonoma
PN sonoma
PN sonoma
PN sonoma
PN sonoma
PN sonoma
PN sonoma
29
255
2
101
138
285
46
225
10.0%
244
75
248
258
82
270
287
90
300
10.0%
241
271
323
353
390
1,472 2,725 3,724 4,422 4,870
2014
2015
FOB revenue:
2016
2017
2018
2014
2015
COGS:
2016
2017
2018
19,100
56,900 171,400
88,900 267,500
111,300 335,100
134,600 405,300
148,100
76,000 260,300 378,800 469,700 553,400
$ 120 $ 120 $ 120 $ 123 $ 132
9,600
28,500 85,700
44,400 133,800
55,600 167,600
67,300 202,600
74,000
38,100 130,100 189,400 234,900 276,600
$
60 $
60 $
60 $
62 $
66
52,900
54,700
5,300
46,000
4,400
39,500
3,700
47,000
4,500
52,400
107,600 51,300 43,900 50,700 56,900
$ 180 $ 180 $ 180 $ 197 $ 198
26,400
27,300
2,600
23,000
2,200
19,800
1,800
23,500
2,300
26,200
53,700 25,600 22,000 25,300 28,500
$
90 $
90 $
90 $
98 $
99
200
15,100
20,800
6,900
33,800 11,200
40,900 13,600
44,600 14,800
49,500
36,100 40,700 52,100 58,200 64,300
$ 150 $ 150 $ 162 $ 165 $ 165
100
7,600
10,400
3,400
16,900
5,600
20,400
6,800
22,300
7,400
24,800
18,100 20,300 26,000 29,100 32,200
$
75 $
75 $
81 $
83 $
83
220,000 352,000 475,000 579,000 675,000
110,000 176,000 237,000 289,000 337,000
2014
CH napa
CS napa
PN sonoma
CH napa
CS napa
PN sonoma
CH napa
CS napa
PN sonoma
CH napa
CS napa
PN sonoma
CH napa
CS napa
PN sonoma
CH napa
CS napa
PN sonoma
634
598
241
1,472
2015
total cases sold:
2016
2017
2,169
285
271
2,725
3,157
244
323
3,724
3,812
258
353
4,422
2018
4,192
287
390
4,870
2014
317
299
120
736
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
50.0%
50.0%
50.0%
2014
2015
bottle price:
2016
2017
2018
2014
$20
$30
$25
$20
$30
$25
$20
$30
$27
$21
$33
$28
$22
$33
$27
2014
2015
total revenue:
2016
2017
2018
113,997
161,360
54,208
330,000
396,992
78,270
62,039
537,000
2014
2015
cost per case:
2016
2017
2018
$60
$90
$75
$60
$90
$75
$60
$90
$81
$62
$98
$83
$66
$99
$83
2014
2015
total COGS:
2016
2017
2018
38,100
53,700
18,100
110,000
130,100
25,600
20,300
176,000
234,900
25,300
29,100
289,000
276,600
28,500
32,200
337,000
587,097
68,022
80,777
736,000
189,400
22,000
26,000
237,000
739,803
79,946
91,635
911,000
885,425
91,030
102,882
1,079,000
2015
FOB cases sold:
2016
2017
1,030
135
129
1,294
45.0%
45.0%
45.0%
1,620
109
150
1,879
317
299
121
736
2015
DTC cases sold:
2016
2017
1,139
150
142
1,431
2014
DTC per-case revenue:
2015
2016
2017
2018
$120
$180
$150
$120
$180
$150
$120
$180
$162
$123
$197
$165
$132
$198
$165
$240
$360
$300
$240
$360
$300
$240
$360
$323
$246
$394
$330
$264
$396
$330
2014
2015
FOB revenue:
2016
2017
2018
2014
2015
DTC revenue:
2016
2017
2018
38,003
53,840
17,992
110,000
123,608
24,330
19,361
167,000
199,597
21,454
24,765
246,000
221,375
22,770
25,718
270,000
75,994
107,520
36,216
220,000
273,383
53,940
42,679
370,000
540,205
58,492
66,871
666,000
664,050
68,259
77,164
809,000
2014
2015
2017
2018
2014
2015
2017
2018
99,820
10,706
12,382
123,000
110,647
11,405
12,879
135,000
135,080
14,594
16,718
166,000
165,953
17,095
19,321
202,000
85,251
9,911
11,689
107,000
19,048
26,830
9,079
55,000
68,320
13,459
10,643
92,000
416,595
48,245
57,353
522,000
DTC COGS:
2016
104,149
12,089
14,311
131,000
57.5%
57.5%
57.5%
2.5%
2,515
172
234
2,922
2018
61,780
12,141
9,657
84,000
55.0%
55.0%
55.0%
2.5%
2,192
149
203
2,543
FOB per-case revenue:
2015
2016
2017
FOB COGS:
2016
52.5%
52.5%
52.5%
2.5%
1,736
134
178
2,048
2018
50.0%
50.0%
50.0%
170,503
19,778
23,423
214,000
42.5%
42.5%
42.5%
1,677
115
156
1,948
2014
40.0%
40.0%
40.0%
19,052
26,870
9,021
55,000
47.5%
47.5%
47.5%
1,421
110
145
1,676
2018
60.0%
60.0%
60.0%
2.5%
cased wine sales, distributor:
gross revenue
gross revenue per case
$
$0.00
discounts
excise taxes
net revenue
net revenue per case
$0.00
cost of goods sold
cost of goods sold per case
$0.00
gross profit
gross profit per case
gross profit %
$0.00
0.0%
cased wine sales, direct to consumer
gross revenue
$
gross revenue per case
$0.00
discounts
excise taxes
net revenue
net revenue per case
$0.00
cost of goods sold
cost of goods sold per case
$0.00
gross profit
gross profit per case
gross profit %
$0.00
0.0%
vineyard
PN
CS
$ 1,200
$ 1,800
$ 2,400
60
20.00
30.00
40.00
$1,000
-
10.00
12.00
15
18
grapes, per ton
grapes, per case
winemaking
SB
barrels
months
6
per month
1.50
1.50
1.50
cellar overhead
9.00
22.50
27.00
14.00
18.00
22.00
2.50
2.50
2.50
total cost per case
$ 45.50
$ 83.00
$ 103.50
target (50% FOB equivalent)
$ 45.00
$ 84.00
$ 108.00
(over) / under
$ (0.50)
$
1.00
$
4.50
bottle price:
$
$
28
$
36
packaging
bottling
15
Your COGS / cost per case should not determine price. You should charge as much for your wine as you can, given your channels and growth
strategies. Work backward from your distributor FOB price to a budgeted amount you can spend to make any given SKU.