Vallformosa: Competing in a market of giants
After spending several years working to turn around and transform Vallformosa, a winery that produced cava and other wines, Josep Graells (president) and his team reflected on the company’s future and the next steps needed to achieve relevance and make a positive impact in a highly complex industry.
The cava market was stagnant in both volume and value and was dominated by three large companies that accounted for 74% of global cava sales.
Graells emphasized the need to define a business strategy that would integrate stakeholders and drive investment in quality and sustainability. Vallformosa aimed to lead the transformation of the cava industry by prioritizing quality and the integration of grape growers. Graells and his team were evaluating options to strengthen the company’s position in the industry and improve the quality of its corporate governance.
Description
After spending several years working to turn around and transform Vallformosa, a winery that produced cava and other wines, Josep Graells (president) and his team reflected on the company’s future and the next steps needed to achieve relevance and make a positive impact in a highly complex industry.
The cava market was stagnant in both volume and value and was dominated by three large companies that accounted for 74% of global cava sales.
Graells emphasized the need to define a business strategy that would integrate stakeholders and drive investment in quality and sustainability. Vallformosa aimed to lead the transformation of the cava industry by prioritizing quality and the integration of grape growers. Graells and his team were evaluating options to strengthen the company’s position in the industry and improve the quality of its corporate governance.
Learning Objective
To diagnose the company’s main problems and determine what priorities the president and the CEO should focus on:
- To analyze the industry, Vallformosa’s strategy, and its business model, including a discussion of its sustainability and circular economy strategy.
- To explore options Vallformosa should consider to gain relevance.
- To propose improvements to the company’s corporate governance and executive committee.
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