{"id":245,"date":"2012-05-08T05:00:57","date_gmt":"2012-05-08T12:00:57","guid":{"rendered":"http:\/\/myersthoughts.com\/?p=245"},"modified":"2015-01-28T12:58:46","modified_gmt":"2015-01-28T20:58:46","slug":"business-financial-model-coca-cola","status":"publish","type":"post","link":"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/","title":{"rendered":"Business Financial Models – Coca-Cola vs. Wine"},"content":{"rendered":"

\"Perfect<\/a>As the next post in the series on a Perfect Business, Financially Speaking<\/a>, I think an anecdote told by Donald Keough in his book “The Ten Commandments of Business Failure” <\/a>conveys the advantages of having a good business financial model versus the alternative.<\/p>\n

Mr. Keough relates how they are trying to decide what to do with a wine business owned by Coca-Cola and how the long run president and board member of Coca-Cola, Robert Woodruff<\/a>, then in his eighties was reporting back on a trip he had made to visit the wine business.
\n<\/p>\n

\n

“Well,\u00a0the wine business is interesting.\u00a0 I went out to California to see the vineyards.<\/p>\n

It seems that it takes five or six years for a vine to\u00a0be mature enough before you can start harvesting grapes.\u00a0 During those years you’ve got\u00a0quite a few people tending to the vines and praying for the right kind of\u00a0weather so they yield a good crop.\u00a0 Finally, though, if everything works out, they pick the grapes and they take them to the plant where they squeeze them and put them into these great, hugely expensive stainless steel tanks where they ferment.\u00a0 From these expensive tanks the wine goes into many small casks made out of equally expensive French oak.\u00a0 The casks cost fifty-five dollars each.\u00a0 The wine then ages for some time in the many small expensive casks.\u00a0 Meanwhile, about 15\u00a0percent of the wine is lost through evaporation.<\/p>\n

Soon, however, after aging quite awhile, the wine goes into bottles.\u00a0 They pay a tax at that time on each bottle and then put the bottles away for more aging.\u00a0 You keep the bottles for years, and if you have a reasonably good vintage, then you finally send the bottles into retail stores where there are hundreds of different kinds of wines on the shelves.\u00a0 At that point, you hope to God that out of that whole array of similar bottles someone is going to buy yours.<\/p>\n

Now I grew up in a business where you bottle it in the morning and sell it in the afternoon and in a lot of places there is no other competition.\u00a0 Seems to\u00a0me that’s the kind of business we want to be in!”<\/p>\n<\/blockquote>\n

\"\"<\/a>\"\"<\/p>\n

\n
Categories:Business Financing & Funding<\/a>, Competitive Advantage & Differentiation<\/a>, Perfect Financial Structure of a Business (a series)<\/a>, Warren Buffett & Berkshire Hathaway<\/a><\/span>
Tags:Berkshire Hathaway<\/a>, Business Strategy<\/a>, Coca Cola<\/a>, Donald Keough<\/a>, Financial Results<\/a>, Profit<\/a>, Warren Buffett<\/a>
<\/span><\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

As the next post in the series on a Perfect Business, Financially Speaking, I think an anecdote told by Donald Keough in his book “The Ten Commandments of Business Failure” conveys the advantages of having a good business financial model versus the alternative. Mr. Keough… Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,5,26,112],"tags":[30,89,42,43,44,27,29],"yoast_head":"\nFinancial Structures, Financial Models | Mason Myers Business Blog for Owners, Investors<\/title>\n<meta name=\"description\" content=\"Business owner and investor Mason Myers regularly writes about financial structures and financial models on his business blog, masonmyers.com.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Financial Structures, Financial Models | Mason Myers Business Blog for Owners, Investors\" \/>\n<meta name=\"twitter:description\" content=\"Business owner and investor Mason Myers regularly writes about financial structures and financial models on his business blog, masonmyers.com.\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/masonmyers.com\/wp-content\/uploads\/2012\/05\/wineandcola.png\" \/>\n<meta name=\"twitter:creator\" content=\"@masonlmyers\" \/>\n<meta name=\"twitter:site\" content=\"@masonlmyers\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mason Myers\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/\",\"url\":\"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/\",\"name\":\"Financial Structures, Financial Models | Mason Myers Business Blog for Owners, Investors\",\"isPartOf\":{\"@id\":\"https:\/\/masonmyers.com\/#website\"},\"datePublished\":\"2012-05-08T12:00:57+00:00\",\"dateModified\":\"2015-01-28T20:58:46+00:00\",\"author\":{\"@id\":\"https:\/\/masonmyers.com\/#\/schema\/person\/efbf4e28b9f46a9b2ae855d03197ab3f\"},\"description\":\"Business owner and investor Mason Myers regularly writes about financial structures and financial models on his business blog, masonmyers.com.\",\"breadcrumb\":{\"@id\":\"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/masonmyers.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business Financial Models – Coca-Cola vs. Wine\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/masonmyers.com\/#website\",\"url\":\"https:\/\/masonmyers.com\/\",\"name\":\"Mason Myers Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/masonmyers.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/masonmyers.com\/#\/schema\/person\/efbf4e28b9f46a9b2ae855d03197ab3f\",\"name\":\"Mason Myers\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/masonmyers.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/87932f33f3b27a6574032d65b17644d1?s=96&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/87932f33f3b27a6574032d65b17644d1?s=96&r=g\",\"caption\":\"Mason Myers\"},\"url\":\"https:\/\/masonmyers.com\/author\/mason-myers\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Financial Structures, Financial Models | Mason Myers Business Blog for Owners, Investors","description":"Business owner and investor Mason Myers regularly writes about financial structures and financial models on his business blog, masonmyers.com.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/","twitter_card":"summary_large_image","twitter_title":"Financial Structures, Financial Models | Mason Myers Business Blog for Owners, Investors","twitter_description":"Business owner and investor Mason Myers regularly writes about financial structures and financial models on his business blog, masonmyers.com.","twitter_image":"https:\/\/masonmyers.com\/wp-content\/uploads\/2012\/05\/wineandcola.png","twitter_creator":"@masonlmyers","twitter_site":"@masonlmyers","twitter_misc":{"Written by":"Mason Myers","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/","url":"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/","name":"Financial Structures, Financial Models | Mason Myers Business Blog for Owners, Investors","isPartOf":{"@id":"https:\/\/masonmyers.com\/#website"},"datePublished":"2012-05-08T12:00:57+00:00","dateModified":"2015-01-28T20:58:46+00:00","author":{"@id":"https:\/\/masonmyers.com\/#\/schema\/person\/efbf4e28b9f46a9b2ae855d03197ab3f"},"description":"Business owner and investor Mason Myers regularly writes about financial structures and financial models on his business blog, masonmyers.com.","breadcrumb":{"@id":"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/masonmyers.com\/business-financial-model-coca-cola\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/masonmyers.com\/business-financial-model-coca-cola\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/masonmyers.com\/"},{"@type":"ListItem","position":2,"name":"Business Financial Models – Coca-Cola vs. Wine"}]},{"@type":"WebSite","@id":"https:\/\/masonmyers.com\/#website","url":"https:\/\/masonmyers.com\/","name":"Mason Myers Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/masonmyers.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/masonmyers.com\/#\/schema\/person\/efbf4e28b9f46a9b2ae855d03197ab3f","name":"Mason Myers","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/masonmyers.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/87932f33f3b27a6574032d65b17644d1?s=96&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/87932f33f3b27a6574032d65b17644d1?s=96&r=g","caption":"Mason Myers"},"url":"https:\/\/masonmyers.com\/author\/mason-myers\/"}]}},"_links":{"self":[{"href":"https:\/\/masonmyers.com\/wp-json\/wp\/v2\/posts\/245"}],"collection":[{"href":"https:\/\/masonmyers.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/masonmyers.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/masonmyers.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/masonmyers.com\/wp-json\/wp\/v2\/comments?post=245"}],"version-history":[{"count":40,"href":"https:\/\/masonmyers.com\/wp-json\/wp\/v2\/posts\/245\/revisions"}],"predecessor-version":[{"id":1536,"href":"https:\/\/masonmyers.com\/wp-json\/wp\/v2\/posts\/245\/revisions\/1536"}],"wp:attachment":[{"href":"https:\/\/masonmyers.com\/wp-json\/wp\/v2\/media?parent=245"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/masonmyers.com\/wp-json\/wp\/v2\/categories?post=245"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/masonmyers.com\/wp-json\/wp\/v2\/tags?post=245"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}