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BROWN-FORMAN WINE ESTATES Johnny Valenzuela MGT 405 - Section 4 Prof. Cunningham Spring 2007 BFC acts as a Multi Divisional Company with WE as a division focusing on small upscale brands of wine. The division is located in the Northern San Francisco Bay area within the largest wine producing regions in North America. Under the direction of Steve Dorfman, the WE division is a focused on premium wine production and sales. It's differentiated approach through established distribution and retail channels hop for the WE's brands would be leveraged into higher sales in the market. The leadership looked for cost advantages such as vineyard purchasing, grape purchasing and glass procurement to reduce the operating cost during the industry wide economic slump. Lowering the per unit cost of production but maintaining the per unit sales costs or even raising the cost at that point will create better returns. Sales in the premium wine...

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