• Crafton Hills College

• FIN 603

Peng Global Strategy 4E Integrative Case 2 The Deutsch-Casella Joint Venture and [ yellow tail ] wines by A. Gilinsky & R. Lopez © Case Research Journal, A. Gilinsky, & R. Lopez 1 Integrative Case 2 THE DEUTSCH-CASELLA JOINT VENTURE AND [ YELLOW TAIL ]® WINES: TRADING UP OR TRADING DOWN?1 Armand Gilinsky, Jr. (Sonoma State University) Raymond H. Lopez (Pace University) America’s W. J. Deutsch & Sons (a wine importer) and Australia’s Casella (a wine producer) operate a joint venture that has successfully launched the [ Yellow Tail ] ® wines. Now facing a financial crisis, top executives face a strategic decision in terms of pricing. We should be very proud of our portfolio of wine brands, but we admit that the [ yellow tail ]® story has redefined and refocused our firm over the last decade. While the current economic environment creates uncertainty for most businesses, we must be confident of our ability to navigate uncharted waters and continue to compete in global markets. — Bill Deutsch These were the words of Bill Deutsch, founder and chairman of W.J. Deutsch & Sons, a New York-based importer, to his son, Peter. W.J. Deutsch & Sons was joint venture (JV) partner in the export and sale of the [ yellow tail ]® brand of wines from the Casella family winery in New South Wales, Australia. It was early February 2009. W.J. Deutsch & Sons’ wines were sold to trade intermed