College - Author 1
College of Agriculture, Food and Environmental Sciences
Department - Author 1
Agricultural Education and Communication Department
Degree Name - Author 1
BS in Agricultural Science
California is the largest wine producer in the nation. There are more than 4,000 wineries in the state and much of their success comes from tasting rooms. A study will be conducted in the spring of 2017 to determine the feasibility of building a tasting room out of an old barn at an established winery. Tasting rooms can add monetary and aesthetic value to a winery. Knowing how to conduct a feasibility study for the build is crucial to its success. The author will create a feasibility study including a cash flow budget, a capital budgeting statement, and a sensitivity analysis in order to determine whether or not the winery should undertake the remodel for the tasting room. The sensitivity analysis will examine the change in amount of wine sold, an increase or decrease in price, and variable costs. Feedback from wineries and personal references will help the author determine what is essential to the implementation of a tasting room.