Global Wine Wars Essay

The winery industry can be categorized into red and white wine segments. The red wine segment, measured by tonnage of varietals crushed, has grown at a compounded annual rate of 4.7% for 10 years from 1989 to 1998, and a year over year growth rate of 8.2% from 1998 to 1999. Judging by the strong growth rate experienced in the red wine segment, it is reasonable to conclude that the red wine segment is in the growth phase of the life cycle model. In addition, production of red wine varietals which are relatively unknown such as syrah and sangiovese nearly doubled in a year from 1998 to 1999. The white wine segment, however, is at the mature phase of its life cycle as the segment shrunk slightly by 0.42% from 1998 to 1999. Overall, the industry is still at the growth stage lead by growth in the red wine segment.

The structure of the wine industry is quite different around the world. The barrier to entry is relatively higher in the New World than in the Old World. Referring to the market data on the level of concentration in 1998, people can see a few players dominate the markets in Australia and the U.S. while the level of concentration is quite low in Europe. Therefore, the rivalry in Old World is intense there.

The dynamics of the global wine industry are better understood through a brief history of wine as well as an overview of the wine making process. Some countries have longer historical and cultural ties with wine then others and that can affect the quality and perception of the product in the eyes of the consumer. Also, the conditions in which the wine grapes are raised and the processes used to make the wine can create a superior wine and therefore a competitive advantage.

Wine production involves two parts of economic activity – viticulture and wine making in the winery. In the global context, wine production is dynamic due to the influence of globalization, technological advancements and extensive research. These have essentially influenced the nature, spatial patterns and the ecological dimensions of the wine industry.

The buyer’s power within the wine industry varies between different places in the world. There are for example strategic differences between Europe and the “New World”. The “New World” includes countries like the US, Australia, Chile and South Africa. In Europe there is a big competition

1.Discuss critically the competitive advantages of New World wine producers and contrast these against their Old World competitors.

When people think of French gastronomy wine is an essential component of her culture. While it remains a one of many licit joys the French indulge in, this gluttony is an important image and offering to tourist. Although parts of France greatly rely on the production and manufacturing of wine more than the actual consumption, they still rather enjoy their wine. Oenology in itself is a very interesting study and takes the appreciation of the drink to a whole new level. French wine is much like the French themselves its well-dressed, elegant, never overpowering, and well behaved. Even on the topic of Oenology the variety and quality that France provides is incredible. Two well-known regions, Rhône and Bordeaux, produce the some famous wine names such as Côtes-du-Rhône and Château d 'Yquem. The Côtes-du-Rhône is more earthy and tends to be described as rustic while Château d’Yquem is a sweeter or dry wine, and also holds the record for most expensive wine bought at 117,000$. Avoiding great detail it’s easy to say that the difference starts in the soil that makes the grapes. In a way the wine can be seen as a model for modern production and food by promoting quality and variety, in other words, an optimistic point of view for French food. France is always advancing in food and wine production therefore it is a fair assumption that they will continue to grow together.

During the nineteenth century a country located in the western border of Europe that was once quite prosperous was beginning to take quite a turn. This country was France. At the time France was known for its alcoholic industry. Alcohol was so important to France that alcoholic beverages even became a prominent part of French culture. France was also advancing in medicine and attempting to progress far in technology to contribute to this field. For example, France was constantly creating vaccines that were saving hundreds of lives both in the present day and in the future. More and more citizens of France were aiming to become a part of the medical field, leading to a new-found respect for that field of science. The silk industry was also prominent,

The Robert Mondavi Winery became one of America’s most innovative, high-quality winemakers in the late 1960s and early 1970s. There are over 1 million wine producers worldwide and no winery accounted for more than 1% of global retail sales. Because of this and the fact that there are many substitutes, there is an issue to try to gain economies of scale and become a leader in the wine market. Wine tends to stay it its local region, which makes it harder to compete with its substitutes. In the strategic analysis portion of this case analysis, we discuss Porter’s Five Forces and how they affect the Robert Mondavi Winery. We conclude that in order for the winery to stay

The following analysis will use Porter's 5 Forces Model to identify the market power. The grape growers are the suppliers, the winemakers are the sellers and the consumer is the buyer. This discussion could also include the suppliers of raw materials for bottling the wine, the shipping companies used to carry the wine to the point of sale and also the supermarket, liquor store and restaurant owners where wine is often purchased by the consumer.

This paper will zero in on compare and contrast two different regions which are Bordeaux and Burgundy in the same field: location, Climate and Terroir, and Grapes. Discuss the early history of the development of each region, including the specific examples. Then review the location, Climate and Terroir, and Grapes that rank the wines as among the best in the world. To conclude, look into the future of each region to analyze prospects for continued success.

In the most recent years, domestic sales of wine has declined constantly. The wine consumption is becoming more occasional. This is partially due to an aggressive anti-alcohol campaign and driving restrictions set by the local government, but also facilitated by a lack of marketing strategy: the wine market is loosing touch with the youth (the average age of wine drinker is gone up from 35 to 55) and young people are getting more keen to beer or alcohol pops.

Bieler, Kristen Wolfe (2006), “Behind the [ yellow tail ]® Phenomenon: How It Happened and What’s Next?” Beverage Media Group, February, pdf download.

This case describes the global development of wine industry, and how new world wine players occupied the global market share from old world wine producer gradually. It is very interesting that author selected the Britain as the sample stage for the battle between the new world wine campaign and the traditional campaign.

The importance of wine and wine making for religious matters was growing together with the rise of Catholicism. The church was also responsible for making and perfecting wine in Champagne and Burgundy region. The famous French Revolution was causing the making of low quality wine increased. One of the factor to be believed was because many of the French vignerons don’t have enough knowledge to make high quality wine. French wine reach their golden age in the middle of 19th century. In 1855 Bordeaux got its classification and become of the world’s most famous