Growth Strategy for Vincor Essay

Vincor needs to align itself in the commercialise such that it can continue to be a commercialize draw and grow internationally. The Canadian wine market is stagnant with limited addition opportunities in a few segments red, premium, varietal, and ice wines. Supply is always a big concern and government regulations for the sale of alcohol must be considered. As a result of the changing environment, immature prospects in the market and strategic branch in external markets (international) should be analyzed.Going forward, Vincors offshoot strategy needs to focus on markets where they can do substantial market penetration and be highly successful. The opportunities are as follows1) Expand into international markets via acquisition and restructure the current debt to decrease worry equals. Capitalize on the popular brand name in the newfangled market to achieve significant foreign growth.2) Varied approach to cost reduction and focus on niches within Canada. Recover a spat e of the emerging grey market by developing new merchandise packaging for the low-end wines (plastic or boxes).3) Build mutually beneficial partnerships with new water ice bottle suppliers and develop a gross sales channel that go forth get under ones skin economies of scale for the price of bottles and increase margins or renegotiate with current suppliers to compact costs and provide incentives by signing an exclusivity agreement.4) Zero in on the ice wine consumers by meeting the demand. Exploit the Inniskillin brand in the Canadian premium wine market in order to apply market share.5) Develop a new product internationally with a partnership with a winery or vineyard by leveraging Vincors strong management team, international award perspective and recordn sales force to sustain Vincors growth pattern.Expanding internationally through the acquisition of a compevery with strong branding would prove the best alternative, both in terms of timing and future growth potential . Developing a partnership in order to produce new products would take years and considerable time and effort before any gains would be realized. The varied approach would not produce enough growth to support an IPO, but many of these avenues go out be addressed to reduce costs over the next several years.First six (6) to cardinal (12) months Set up the team that will conduct an international market study to determine which market, and more specifically, brand to penetrate. The team will let in1. Jones and a market insight team (utilize services of a consulting potent that specializes in foreign winery acquisitions)2. Jackson and his mergers and acquisition (M&A) team3. Munroe for sales and marketing4. Investment banker The market insight team will insert the data and develop a sound understanding of the targeted wineries and knowledge of the regulations of the uncouth Recommendations will be made to M&A team abutting twelve (12) to eighteen (18) months Once a decision is reach ed, the investment banker and M&A team will contact the companies, begin their due application process and conduct the final purchase The new winery will be integrated into Vincors portfolio and Munroe with his sales and marketing team will be responsible for its growthThe international acquisition will hyperbolise Vincor globally and provide for significant growth in its portfolio. At the very(prenominal) time, the desired Canadian relationships with suppliers will be cemented to reduce cost of sales and increase margins.