Spanish Wine Industry

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Marieshka Barton Wines of Spain Prof. Newton June 15, 2015 Spanish Wine Marketing and Sales Sonoma State University’s Wines of Spain 2015 summer class introduced students to Northern Spain’s prestigious Penedès, Priorat, and Rioja wine regions. Production and marketing professionals from eight wineries hosted our student group and provided facility tours and insights on production, marketing, and exporting. This paper focuses on Northern Spain’s wine industry’s legal regulations, tourism, stewardship, communications, and exports through the lens of wine business marketing. The paper concludes with marketing recommendations relevant to new…show more content…
Since the 1990’s, Spain has entered the global market to claim its position as a high-quality value wine producer (www.winesfromspain.com). Spain’s rich wine history together with it’s relatively new global market entry and cost leadership strategy makes an interesting blend of old world and new world characteristics. State of the Industry Wine is a significant part of Spain’s cultural identity and economy. The sector represents Spain’s third largest agriculture crop after cereals and olives, and it leads the world in vineyard land with 1.16 million hectares (www.foodswinesfromspain.com). However, most the land is arid and sparsely planted. Yet, it holds third position globally in wine volume produced (Rubio, 2010). Although Spain has a traditional wine and food culture, domestic consumption continues to decline. The decreased consumption is attributed to strict drunk driving laws impacting restaurant sales and the rise of alternative drinks such as mineral water (Carrion and Albaladejo, 2010). Also, millennials tend to not drink wine. In fact, the characteristic Spanish wine drinker is an older male with a preference for high quality aged DO red wines that drinks at home, an aging demographic. Spain’s domestic market consumes 28.2 liters per capita compared to France at 50 liters per capita necessitating an aggressive export strategy (Mtimet and Albisu; Minjares). Exports now

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