The Valley Hills Winery Map

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.

Making grapes into wine is a long process. The first step is to harvest the grapes by picking them by hand. Then, the grapes are sent to the winery. Next, the grapes are brought to the machine to be crushed. Then, the next step is pressing the skin seeds and any other non-juice items from the juice. The next step is fermentation in this step the grape juice is turned into alcohol. Then, the second to last step is aging, aging is when the wine is put into oak barrels. The last step is bottling the wine and labeling the

It depends on what types of products one plans to produce using the land. Since the winery business requires high investment in real property, it is important for one to make an investment decision on what market segment it wants to play in. Napa Valley is widely known as a good place for staring a vineyard and the land price is relatively higher than anywhere else in the US. The initial investment would affect the cost structure, which eventually drives up the price of wine. For example, budget wine consumption is very price sensitive and some competitors are trying to maintain their competitiveness with a lower price. If a company decides to produce wines from the winery in Napa Valley, soon, it would be forced to put a premium on the wine price to maintain a level of margin and ,eventually, the company would lose its competitive edge if it is a price player.

Smaller firms such as the family run operations in Europe may not be able to realize these same cost efficiencies. Furthermore, grapes represent 50 to 70% of a winemakers COGS, thus the competition for sourcing high quality grape growers is quite high. Just as Mondavi does for 75% of its purchases, most premium wine makers enter into long-term contracts with growers to not only ensure that their demand is met but also to make sure that they receive grapes that are consistent in quality.

The Variety of grapes planted in Grand Valley vary widely and the yield percentage is relatively low. The styles in wine vary from dry white and red with ice wine as well. Ice wine is a sweet and concentrated wine made from grapes that freeze on the vine. There are many different varietals of wine used in the Grand Valley which include red wines, white wines, and rose wines. White wines consist of merlot, Shiraz, and Cabernet Franc and rose wines consist of Rose’. The TTB, which is the Alcohol and Tobacco tax and trade Bureau, imposes many different requirements on an Ava such as evidence of the name of the proposed AVA is locally or nationally known as referring to the area, historical or current evidence that the boundaries are legitimate, evidence that growing conditions such as

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 most important necessary inputs for the production of wine are grapes, bottles and labor. Concerning the grapes, there is an outstanding difference between the traditional wine producing countries for example in Europe (the south of France, Spain, Italy and Southeastern Europe) and big wine factories that operate as oligopolies like in the US and Australia. Due to the bond to traditions and the higher demand for quality in Europe most of the wineries here still stick to the original way of producing wine, including the growth of the grapes on the land around the winery, a so called vertical integration (which is often considered by producers where the supplier's price is too high or the offer is insufficient, in our case this trend results rather in traditional and cultural values than in financial ones). This eliminates the percentage of dependence on agricultural suppliers significantly, whereas concerning a big wine company the negotiation power of the supplier is quite high. These wine companies tend to have a low sensitivity towards the price they are charged, as grapes are a crucial component of wine production. However, in both cases the price of the grapes is always

Vail is a town located in Eagle County in the mountains of Colorado with a population of 5,305 people (Current). Vail was originally built as the base village for the Vail Ski Resort and is constantly growing to this day. Vail is known for the beauty of the town but mostly for the ski resort. Vail Ski Resort is the largest ski mountain in Colorado. The summit of the mountain reaches 11,570 feet while the base reaches 8,120 feet (Vail). Because of the explorers discovering the mountain range, army camps being set up during World War II, and the construction of Vail ski resort it led to the making of the beautiful town everyone loves today known as Vail Colorado.

The Grand Canyon is located in Northern Arizona and is part of the Colorado Plateau that was uplifted during tectonic activity. It is said to be more than 1.7 billion years old and filled with many mysteries still about its formation. This immense canyon was cut by the Colorado River that exposed its horizontal layers of rock history. These layers have mostly a red hue but each group of strata has a distinctive color often giving us a sign of its origin.

census-designate place located on the south rim of the grand canyon, in Coconino county, Arizona, in

The supply of grapes, apples, bulk wine and grape juice concentrate for Vincor’s wine products comes from a combination of sources. Privately owned vineyards (Canada, U.S., Australia) provide somewhere between 35% to 57% of the raw products needed to

Suffolk County, on New York’s Long Island, benefits from farming practices with a diversity that is unique within the state as well as the nation. The region’s farmers have been inspired by the ‘foodie ethos’, and strive to meet the call for locally grown products in an environmentally sustainable fashion. This is especially evident in the region’s viticulture and wine making industries as they attempt to protect a fragile ecosystem (Nigro 2015). The American Viticulture Area that encompasses the region is divided into three Appelations; The North Fork of Long Island, The Hamptons, and Long Island. There are sixty vineyards that range in size from two-and-a-half acres to over five hundred. Wine makers in region total fifty-six, with forty-seven on the North Fork, four in the Hamptons, and five in Western Suffolk County. Current production totals some five hundred thousand cases equaling one million two hundred thousand gallons (Ruckdeschel 2013).

Also, California has Unique Temperature patterns are critical for growing wine grapes because the warm days and cool nights of California, especially the coastal regions, have a large effect on the grapes and the wine they produce. Beside, Warmer temperatures typically produce riper, sweeter grapes, which in turn lead to higher alcohol content wines. These warmer temperature grapes also produce fruitier wines typical of California Wines. Cabernet grapes especially need these warm temperatures. Grapes grown in the cool regions of the California coast tend to be less ripe, less alcohol

The Mondavi Corporation has over 8,000 acres of vineyards in its portfolio. This company is constantly searching for new vineyards and ways to grow the finest grapes to harvest. Even though Napa Valley, California is where most of their vineyards are located, Mondavi has vineyards worldwide.

For the purposes of this case analysis of E. & J. Gallo Winery, the wine industry is composed of all alcoholic beverages that contain between eight and twenty percent alcohol by volume. This distinction is based on the assumption that beer and the typical malt liquor contain less than eight percent alcohol by volume. The twenty percent limit is a result of state and federal tax and licensing laws. The three top competitors that are identified in this case study are E. & J. Gallo, Canandaigua and Mogen David.