Sent: Thursday, December 22, 2005 8:43 AM
Subject: Orangewood Wine News - 23
To
Our Wine Aficionados,
Introduction
Well, a Merry Christmas to you. I was talking to my
sister, Margaret, over the weekend. She lives in
Box
Score
New Restaurants/bars: 4
New Retail
outlets: 1
New Sales
people: 0
New
Wineries: 1
Contents
New Locations
The Greene House,
Camus,
Roaring Fork,
Mosaic,
58 Degrees and Holding II,
New Wineries
Boeger Winery –
Upcoming Events
Rambling
New
Locations
The Greene House,
Fox
Restaurant Concepts has added another restaurant in the Kierland
location – just north of North. The restaurant, named after the
famous turn of the century California Craftsman architect, Henry Greene, has a
craftsman theme. The food is simple and fresh, the wines from small
(craft) wineries.
Camus,
The Clarendon
Hotel has been extensively refurbished and a trendy restaurant and bar
included. The reviews are good.
Roaring Fork,
Chaparral Rd is
the
Mosaic,
This restaurant
at the intersection of
58 Degrees and Holding II,
58 Degrees refers
to the temperature at which fine wine should be stored. Holding refers to
the facilities which allow customers to keep their fine wines at this ideal
temperature. 58 Degrees and Holding also allows customers to purchase
fine wines. Located at
New
Winery
Boeger Winery,
Greg
Boeger has been in the wine business since before he
was born. He grew up on his grandfather’s ranch, the Nichelini Winery, which is close to RustRidge Ranch in the
Jim (our Prescott,
Jerome, Sedona sales guy) and I drove over to visit last week. (We were doing
some modest inventory buildup – see rambling). It is an amazing
winery in the Historic town of
At one time Boeger wines were distributed in
Upcoming
Events
Events are sometimes described on our website if
I remember to tell Laurie about them.
http://www.orangewoodwines.com/wine-events.htm
Rambling
One Christmas time, way back when I was in the corporate
world, I was the only person with no vacation left, so I was acting Vice
President of Engineering. With my temporary authority I bought the
management team a copy of Peter Senge’s book The
Fifth Discipline. I had just read it and thought it so insightful
that our company would benefit immeasurably from the enlightenment. I was
reminded of this because one of the anecdotes is called “The Beer
Game”. Briefly, the set up is that there is a beer factory, a beer
distributor and a beer retailer. The three entities basically communicate
with one another by means of placing orders to be delivered in 3 weeks.
So the retailer gets weekly deliveries and places the future order at that
time. Each of the entities has a small inventory to manage variations in
demand. Due to a particular beer appearing in the lyrics of a popular
song, demand for that beer doubles. The retailer manages to meet the
demand from his inventory for a week or two and orders twice as much on his
order form. However, with the 3 week dead-time in order response, he is
not meeting the consumer demand. So, the retailer increases his order
even more. The distributor sees the doubling in orders and then
additional increases, and has the same problem. The distributor increases
his factory orders even more. The factory increases production in
response to the increased orders it sees. All well and
good. Now the increased orders start to show up. They are
now meeting the consumer demand but orders beyond that doubling start to build
up inventory and they keep coming. Pretty soon all three are up to their
ears in inventory that will take months to get back to normal. This from just a doubling in demand. I was reminded of
the story, not just because it’s Christmas, but because there are a
couple of products I ran out of briefly when I started to received bigger
orders. Was this an increase in demand or am I seeing a response due to
the gap in availability? Thinking quickly, I put on my delivery man hat
and went to ask the folks making the orders. Yes, it is an increase in
demand, but not massive. A modest buildup of inventory was called
for. Thank you Peter Senge.
After last month’s prolonged ramble, I got an email
from a dedicated reader (yes, Frank, it was you) who told me he had read to the
end of the newsletter. Congratulations are in order.
Ciao,
Richard
and Laurie
Richard
(newsletter writer) and Laurie Corles (editor)
Orangewood
Consulting LLC
480.488.4794
or 602.410.3774
http://www.orangewoodwines.com
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