Global Wine War Case Study

1040 Words Jan 31st, 2016 5 Pages
Global Wine War Case Analysis The global wine war has taken many turns since the 17th century. The largest impact was the immergence of New World wine makers. The largest disadvantages the Old World wine makers battled were the strict government classifications and controls. These rules prevented them from being able to become more efficient, innovative, and different. Before the New World entered the global wine industry, Europe dominated the industry. France became a dominant competitor for centuries because of its existing sources of competitive advantages and the advantages they were able to develop over time. France’s strong wine production and culture took root centuries ago. By the Christian era, wine became part of the …show more content…
New World producers knew they needed to differentiate their products and make them more appealing to palates unaccustomed to wine. The difference is distribution also gave New World producers an advantage because they had control over the entire value chain, giving them bargaining power and lower costs. The battle between the Old World and New World culminated on May 24, 1976 when America’s Bicentenary, a British wine merchant set up a blind-tasting panel to rate top wines from France and California. Even though it was held in France, the American entries took top honors in both red and white competitions. French producers complained it was rigged; another one took place two years later and American entries won again. This brought a lot of awareness that New World winemakers produced quality wines, even with their innovative approaches. The French Minister of Agriculture can change many regulations to help give French winemakers a more competitive place in the industry. If the regulations describing permitted grape varieties and winemaking techniques were reduced, their flexibility would increase. Also, there is no reason to have so many different classifications of wine. The new generation does not care about the prestige of being classified as a certain type of wine. In regards to the head of the French wine industry association, he or she should focus on marketing their wine as being traditional. Along with being traditional, winemakers

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