Supply chain research from Syracuse University‘s Martin J. Whitman School of Management finds that a wine distributor can significantly improve its profits by investing in wine futures, in addition to bottled wine. The numerical analysis of the study illustrates an approximate 21 percent improvement in profit, a benefit that increases as the wine distributor’s degree of risk aversion increases. Based on this study, researchers also believe that there is a strong potential for a wine futures market in the United States.
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More information about the study can be found in “Wine analytics: Fine wine pricing and selection under weather and market uncertainty,” by Burak Kazaz, The Steven R. Becker Professor of Supply Chain Management and The Laura J. and L. Douglas Meredith Professor of Teaching Excellence at the Whitman School of Management, and his co-authors, Mert Hakan Hekimoğlu (The Lally School of Management, Rensselaer Polytechnic Institute) and Scott Webster (WP Carey School of Business, Arizona State University).