The Wines Of Spain ( California )

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.

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 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

Normally wine is started in the fall when the ripe grapes arc harvested. It is not ready to be tasted until at least the following May-the origin of the young, and often very harsh, ‘May Wine.’ This time sequence coincides with the typical school year and thus provides an ideal opportunity to have a continuing demonstration. As the year passes and the course progresses, continued reference can be made to the various stages of the wine production….

This northern California winescape is “dotted with Italian surnames that suggest traditional roots of pioneering viticulturists” (Helzer 49). For Italians, they adapted their “old-world winemaking traditions to new lands” (Helzer 49), and their success can be partially attributed to the “similarities in landscape, ecology, and climate between California and the rolling countryside of northwestern Italy” (Vaught 885). Furthermore, the success of these immigrants can be attributed to their plethora of access to social capital listed

MontGras, a medium-size Chilean winery, has to formulate an export strategy. It has to decide whether to emphasize the U.S. or U.K. markets, which also offer different positioning and pricing proposals. It has twice failed to penetrate the U.S. market, because distributor relationships fell through, and is deciding between two new potential partners. In the United Kingdom, it is offered participation in a supermarket promotion that will boost volumes but at the expense of price maintenance.

The United States wine industry is a 12 billion dollar industry and is composed of 7,000 wineries and around 1,800 different companies. The three major companies within the industry are Constellation brands, E&J Gallo, and The Wine Group Inc. The industry has made its way through the economic crisis at a better rate than some of the other U.S industries however in order for them to continue to see any type of growth it is important that they acknowledge their issues and find ways in which they can rectify them. The majority of the issues among the industry are problems that cannot be directly controlled by individual wine companies. Therefore it is imperative that wineries find away to use these issues to their

Through heavily exporting to U.K and U.S, MontGras segmented and exposed to some of the top wine consumers in the world

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

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.

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

In a short time, the Douro has created itself as Portugal’s premium wine region. The change that is now taking place in this most extraordinary wine regions. The suddenly joined vineyards hold some delightful terroirs. Because the economic domination of the Port trade it is only lately that these have been broadly oppressed to produce premium wines. Table wine has continuously been made here but, with a couple of noteworthy omissions, it has been unattractive stuff, typically badly made from low quality grapes that were leftover to the requirements of Port producers. Numerous factors have united to change this situation. Most significantly, a critical mass of concurring winemakers has arisen, passionate about making the very best wines that these extraordinary terroirs are proficient of. Dirk Niepoort has been a key player in current developments in the region. As well as producing some dazzlingly expressive Douro wines himself, he has been acting as a ingredient by inspiring the leading wine producers to get together and spur each other on to better things. (Goode 2016.)