What is a recommended response to supply chain disruptions in winemaking?

• A. Contingency sourcing, flexible production plans, and working capital management.
• B. Ignore disruptions and wait.
• C. To increase prices immediately.
• D. Stop production.

Answer: (C)

When disruptions hit the supply chain, the immediate aim is to protect profitability and cash flow as the business adapts. Increasing prices right away is the best move because it helps reflect the higher costs and scarcity you’re facing, so margins aren’t eroded as input prices rise and supply tightens. This price adjustment can also signal to customers that the product is in shorter supply and more costly to produce, which can help manage demand and preserve valuable inventory for key channels. The quick revenue boost buys time to implement longer-term fixes such as diversifying suppliers and building more flexible production, without letting costs outpace revenue. Waiting, stopping production, or delaying pricing only risks deeper financial stress and reputational damage, while a rapid price adjustment addresses the immediate financial pressures inherent in disrupted supply chains.