India Wine Industry Report

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.

Wine production is a major industry in Australia that is vital to the nation’s economy. In Australia, wine is subject to two taxes. Wine is subject to the Goods and Services Tax as well as the Wine Equalisation Tax. The Wine Equalisation tax is a values-based tax that is placed on all wine that is consumed in Australia (Wine Equalisation Tax, 2015). It applies to all grape wine and grape wine products that have a minimum alcoholic volume of 1.15% (Wine Equalisation Tax, 2015). Furthermore, it affects wine manufacturers, wholesalers, and importers (Goods and Services Tax, 2015). Though it may seem odd to implement an additional tax to a specific group of products, the wine industry has been subject this type of tax since 1930.

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

The availability and location to prime market areas and geographic resources (such as water supply) drive the market elasticity demand factors governing land price. As such, site selection, soil profile and climate , all critical to wine flavor and quality, will (thanks to geographical experience indicators (AWBC, 2008)) significantly drive up the cost of land and determine the product that can be grown.

In 2001 there were over 1 million wine producers worldwide, and no firm accounted for more than 1% of global retail sales. Because of this, it would be nearly impossible for the Robert Mondavi winery to dominate sales in any region. Due to Mondavi’s efforts, the winery became one of America’s most innovative,

This industry has seen very limited growth since 1986. Based on Exhibit 4 (C-271, the total wine consumption in the US) and Exhibit 5 (C-271, per capita wine consumption in the US) the wine industry is in the maturity stage. It could

Wine culture means a lot to people. People can suspend their ‘secular identities’ throughout the bottle opening, rituals, wine festivals, wine tastings (Fuller, R. 1996). Wine has been called a ‘chemical symphony’, ‘bottled poetry’ and a ‘capture sunshine’ (Becker 1979)

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.

Nowadays, in the “Old World” countries of Europe, where the bulk of the volume is still produced, this is of great concern. However, consumers, especially younger drinkers, prefer the high quality wine from famous brands which are imported into Europe by the “New World” player, and the growth rate is at average10% per

Wine-oriented tourism resource is defined as a synthese of resource related to wine planting and producing, and can attract tourists, stimulate tourist motivation, and can be used by tourism industry, creating economy benefits, social benefits and environment benefits in nature and human society (Li & Yu, 2008). Wine tourism resource can be broadly categorized into two types which are natural tourism resource and cultural tourism. Natural tourism includes grape planting area, vineyards, equipment of wine making, architecture, cellar and etc. cultural tourism resource includes wine history, wine cultural, wine appreciation techniques, wine planting techniques, wine museum, all services and entertainments related to wine tourism, wine festivals and collections of wine (Getz & Brown,

This paper will outline an executive summary of a marketing strategy of a new wine brand to a targeted audience that will incorporate the buyers motivation, psychographics, and demographics. A description of the overall marketing strategy will include advertising, customer relationship manager and a Public Relations campaign. Finally, a an overall strategy to position the brand against the competition will be outlined.

consumption of wine in the country and the growing sector technologically as well are an