Skip to main content
  • Home
  • About
  • Faculty Experts
  • For The Media
  • Videos
  • Topics
    • Alumni
    • Events
    • Faculty
    • Library
    • Research
    • Students
    • All Topics
  • Contact
  • Submit
Business & Economy
  • All News
  • Arts & Culture
  • Business & Economy
  • Campus & Community
  • Health & Society
  • Media, Law & Policy
  • STEM
  • Veterans
  • |
  • Alumni
  • The Peel
  • Athletics
Sections
  • All News
  • Arts & Culture
  • Business & Economy
  • Campus & Community
  • Health & Society
  • Media, Law & Policy
  • STEM
  • Veterans
  • |
  • Alumni
  • The Peel
  • Athletics
  • Home
  • About
  • Faculty Experts
  • For The Media
  • Videos
  • Topics
    • Alumni
    • Events
    • Faculty
    • Library
    • Research
    • Students
    • All Topics
  • Contact
  • Submit
Business & Economy

Novel Research Demonstrates Financial Benefit for Distributors Who Invest in Wine Futures

Monday, March 6, 2017, By Kerri D. Howell
Share

New supply chain research from the Martin J. Whitman School of Management at Syracuse University shows a wine distributor can significantly improve its profits by investing in wine futures, in addition to bottled wine. The study’s numerical analysis demonstrates an approximate 21 percent profit improvement, a benefit that increases as the wine distributor’s degree of risk aversion increases.

In “Wine analytics: Fine wine pricing and selection under weather and market uncertainty,” 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), determine how best a wine distributor can allocate monies between bottled wine and wine futures, based on fluctuations in weather and market.

“Wine distributors often carry bottled wines, and avoid making investments in wine futures due to the fact that they do not have intimate understanding of how wine prices evolve from the wine

Burak Kazaz

Burak Kazaz

futures stage to bottled wine prices,” said Professor Kazaz. “By explaining the movement in prices with weather and market fluctuations, our work demonstrates how a wine distributor can determine the selection of fine wines, and how the firm can adjust when new (additional) weather and market information becomes available.”

Professor Kazaz added that there’s no downside to a wine distributor investing in futures. It increases the expected profit in spite of being a riskier asset than bottled wine.

“It’s the first time we’ve been able to quantify the financial benefit of wine distributors’ investment in wine futures,” said Professor Kazaz. “We anticipate that our work will likely change the common practice for wine distributors who can now make informed investments in wine futures with confidence, and allocate their budgets between futures and bottled wine.”

Steven Becker, executive vice president/treasurer and compliance of Southern Glazer’s Wine & Spirits, the nation’s largest alcoholic beverage distributor, was intrigued by the results of the study.

“We appreciate the rigorous statistical analysis in this paper,” said Becker. “This work will be beneficial for those who are interested in advanced purchasing of fine wine.”

The study is forthcoming in the INFORMS journal of Manufacturing & Service Operations Management.

About the Martin J. Whitman School of Management 

The Martin J. Whitman School of Management at Syracuse University educates students to become successful entrepreneurial leaders in a rapidly changing global economy. The Whitman School offers B.S., MBA, M.S. and Ph.D. programs, all accredited by the Association to Advance Collegiate Schools of Business (AACSB). The school’s faculty includes internationally known scholars and researchers, as well as successful entrepreneurs and business leaders. Whitman continues to be ranked among the nation’s top business schools by U.S. News & World Report and Bloomberg Businessweek. For more information about the Whitman School, visit http://whitman.syr.edu/ and follow it on social media at http://whitman.syr.edu/follow.

For more information, contact: Kerri D. Howell, Syracuse University’s Whitman School of Management, (315) 443-3671 or kdhowell@syr.edu

  • Author
  • Faculty Experts

Kerri D. Howell

  • Burak Kazaz

  • Recent
  • Graduate Students Bring Physics to Local Classrooms With Outreach Program
    Friday, May 27, 2022, By Dan Bernardi
  • COVID-19 Update: Effective Wednesday, June 1, Masking Level Returns to Yellow
    Friday, May 27, 2022, By News Staff
  • Preparing Students for a Life of Success
    Friday, May 27, 2022, By Caroline K. Reff
  • Alumni Draw on Their Military Experience in Their Roles as Teachers
    Thursday, May 26, 2022, By Martin Walls
  • Bringing ‘CSI’ Into the Classroom
    Thursday, May 26, 2022, By Dan Bernardi

More In Business & Economy

Rabia Razzaq G’23 Wins 2022 Intelligence++ Inclusive Design Competition

Rabia Razzaq G’23, a multidisciplinary designer and graduate student in the College of Visual and Performing Arts, won the 2022 Intelligence++ Showcase Competition, held in the Whitman School of Management on April 26. The interdisciplinary competition—which encourages design and business…

Whitman School Receives STEM-Designation for Master’s in Professional Accounting Program

The Martin J. Whitman School of Management’s master’s in professional accounting program has received STEM-designation. The class of 2022 will be the first to graduate with this new STEM certification. “We have made notable innovations to our master’s in professional…

Whitman’s Full-Time MBA Program Achieves Highest U.S. News Ranking Since 1998

The Martin J. Whitman School of Management at Syracuse University is now ranked No. 57 in the nation for its full-time MBA program by U.S. News & World Report. This is the highest ranking for the Whitman School since 1998…

Stocks and Finance Immersion Offers A&S | Maxwell Students a Window Into Finance

When Jehan Muhialdain ’22 moved to the United States from Iraq five years ago, one of the major differences she noticed in her new country was the focus put on financial literacy and wealth management. She says living in Iraq,…

Applications Open for RvD iPrize and Hunter Brooks Watson Spirit of Entrepreneurship Competitions

The School of Information Studies (iSchool) with support from the Blackstone LaunchPad at Syracuse University Libraries (LaunchPad) are now accepting applications through March 15 for the Raymond von Dran (RvD) iPrize pitch competition and the Hunter Brooks Watson Spirit of…

Subscribe to SU Today

If you need help with your subscription, contact sunews@syr.edu.

Connect With Us

  • Twitter
  • Facebook
  • Instagram
  • Youtube
  • LinkedIn
Social Media Directory

For the Media

Find an Expert Follow @SyracuseUNews
  • Facebook
  • Instagram
  • Youtube
  • LinkedIn
  • @SyracuseU
  • @SyracuseUNews
  • @SUCampus
  • Social Media Directory
  • Accessibility
  • Privacy
  • Campus Status
  • Syracuse.edu
© 2022 Syracuse University News. All Rights Reserved.