Global Wine War 2009-New World Versus Old

2400 Words Feb 23rd, 2014 10 Pages
Introduction In the 1960s, 1970s or even 1980s, if you ask someone, which countries produce the best wine in the world? They would have said France, Italy or Spain. However, if you ask someone the same question nowadays, the answer would be different. The new wine industry players such as Australia, the United States and Chile are changing the global industry structure, leading the global industry trend, and challenging the traditional wine makers by introducing innovations at every stage of the value chain. This article analyzed the development of global wine industry from the old world to the new based on Case 2-1 Global Wine War 2009: New World Versus Old, and gave some advice to the both sides in the fierce battle …show more content…
The economic impact of these innovations largely decreased the production costs of the New World comparing with the Old.
Changed Marketing Model
In addition to the innovations of grape growing and winemaking, New World also innovated in packaging and marketing.
They developed collapsible plastic bag and replaced cork stoppers with screw caps to reduce shipping costs, to save storage space and to avoid the defect of corks.
They learned the value of differentiating their products and making them more appealing to palates unaccustomed to wine. These experiments provided valuable lessons in branding and marketing.
Some experienced marketers such as Coca-Cola, Nestlé, Pillsbury and Seagram entered the wine industry and left behind the consumer focused attitudes and the sophisticated marketing skills.
The large New World companies typically controlled the full value chain, extracting margins at every level and retaining bargaining power with increasingly concentrated retailers.
These changes brought more profits, more recognition of consumers, more market share and more marketing experience to New World companies.

Global Competition between New World and Old With the intensifying competition between New World and Old, significant changes happened during the last quarter of the 20th century made the competition increasingly fierce.
Maturing Global Markets and Changing Global Demand Patterns A declining demand in worldwide consumption

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