Passion or profit: Bloody Creek Vineyard

Abstract

Synopsis

Edward Rowan, 89 year-old patriarch and the Rowan family were trying to decide if they should start a vineyard in the Nova Scotia Annapolis Valley. Edward had a life-long dream of starting a vineyard on this five-acre farm. Edward, his son David and granddaughter Mary along with their respective spouses had agreed to be partners and provide financing to start the vineyard. The time had arrived to make a decision because they had to order the vines by the end of the month. While they have an extended family to provide free labor for planting, pruning and harvesting along with free access to the necessary machinery, they wanted to be sure that they did not lose money on the venture. They recognized the first four to five years would not generate profits, but they wanted to ensure that in the long term the venture would be viable.

Research methodology

This case was developed from an interview with Donna Rowan, a documentary review of the family’s estimates as well as an interview with the owner of a well-established vineyard in the Annapolis Valley. Secondary sources were used to provide information on the industry and average costs to operate a vineyard. The case uses a partial disguise with respect to the names of family members. The case was tested at the Atlantic Schools of Business student case competition where ten teams from different Atlantic universities participated. The authors were not judges and all suggested changes have been incorporated in the case.

Relevant courses and levels

The relevant courses are: managerial accounting undergraduate programs; intermediate accounting and entrepreneurship courses in undergraduate programs; second-level accounting and entrepreneurship courses in MBA programs; and professional accounting programs’ CPA.

Citation

Rixon, D. and Lightstone, K. (2017), "Passion or profit: Bloody Creek Vineyard", , Vol. 13 No. 6, pp. 750-770. https://doi.org/10.1108/TCJ-09-2016-0071