PARTIAL BUDGETING ANALYSIS OF CONVENTIONAL PUMP OVER VERSUS PULSAIR CAP MANAGEMENT SYSTEM FOR A LARGE–SCALE CALIFORNIA WINERY

The purpose of this project was to evaluate the financial feasibility of implementing an automated gas injection system from Pulsair as an alternative to the traditional pump over cap mixing technique that is used during the alcoholic fermentation stage of winemaking. There were various costs involved in this project that were determined and explained through the use of the partial budgeting method. The costs that were thoroughly analyzed included equipment, labor, utility, and initial investment costs for the Pulsair system as well as the related pump over operation costs. After the two methods associated numbers were evaluated, they were then transferred into Excel spread sheets where it was determined that the initial investment for the Pulsair system would be considerably higher. It was also concluded that even if the utility cost (the major cost factor in the difference of the systems) for the Pulsair system was multiplied 200 times, the total operating cost for the automated system would still be considerably less than the Pump Over method. After further assessment of the figures, it has been concluded that it would be a feasible endeavor for wineries seeking expansion, as well as for future start-up wineries to implement the Pulsair system with expected profitability after the first year of operations