Wine Strategic Plan Essay

Bonny Doon Vineyards, a successful winery business based in Santa Cruz, California, has grown from selling 5,000 cases of wine a year in 1981 to 200,000 cases a year in 1999. To keep growing and be more profitable, the business must choose amongst three possible strategic directions. The first strategy is to start importing wines from Europe into the United States. The second alternative is branching into a retail outlet for unusual wines of great value, accompanied by a high level of service. Lastly, the business’ D.E.W.N could be expanded to include wines not made by the company itself but by other wineries that follow the same values and philosophy.

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.

1) Evaluate the structure of the global wine industry? How and why is that structure changing? What threats do these changes present for Robert Mondavi?

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.

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

The tags with Parker’s ratings also influence the placement of the wines in a retail stores. Parker’s influence to the wine industry did create many benefits to the consumers but a long with it some controversies. (Appendix 1)

However, Bonny Doon is vulnerable and reliant on its suppliers, as 80% of the firm’s grapes are bought from external growers. Bonny Doon requires unpopular grape varieties and grapes that meet high quality specifications (which decreases agricultural yields and creates a trade-off for growers). They need to develop long-term relationships with the growers to ensure uniformity and high production quality with respect to the firm’s key product input: grapes. On the other side of the value chain, the firm has preferred small-medium sized distributors for their product. This has enabled them to retain higher profits, despite selling wine in smaller quantities.

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

As the marketing manager of Bonatelli Wines, I have been asked to prepare a marketing program to establish Bonatelli Wines in a South East Asian Market in which I believe offers the best opportunity for expansion. Working with my team of staff members Maria, who is responsible for advertising and promotions, Thomas, who manages liaison with the current US distributors, and Rob our freelance web designer we will execute a marketing program that manages to compliment the objective of Bonatelli Wines.

One of the aspects that I admire most about Napa Valley Growers is its all-inclusive approach to serving the valley’s vineyard growing community. Not only does Napa Valley Growers represent the Growers as a unifying entity for the valley’s prestigious region, but its multi-faceted structure allows the organization to address the needs of everyone involved from the vineyard owners, and vineyard

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

Over the past decades, the wine industry has encountered a lot of changes. Wines are now very diverse and offer different kinds of tastes to the consumer. A wine will not be the same depending on the environment and the country it was produced. The perception of wine has evolved during the past few years and well-known bottles can be found all around the world due to the globalization. The majority of wine producers was originally located in Europe, in countries such as France, Italy or Spain. However, the world of wine known before is over. The emergence of new producers located in America, Oceania and Africa has changed the vision of the traditional wine industry. Those new players, called the New World wine producers, have put in place effective strategies to compete against ancient ones, known as the Old World wine producers. The change in wine consumption also impacted the mutation of the industry by creating new challenges.

This report will outline the reasons Generation Y have become one of the biggest growth areas for wine businesses. Generation Y includes consumers born between early 1980s to the early 2000s. Wine producers have adopted may modern methods of marketing, such as using social media and the internet to reach a far wider global market than in previous decades. Many wine businesses sell their wine online, providing free samples and recommendations to further expand their customer base. In addition to this, New World wine is being modified to suit young consumers tastes and preferances, and conforming to popular trends. Wine tourism is also becoming increasingly popular worldwide, as vineyards open in regions that had never before produced wine. The designs of wine labels are also changing to suit the younger generation 's tastes. These factors are resulting in Generation Y becoming one of the biggest growth areas for the wine industry.

some oversimplification, we might describe these changes as a turn from a niche market to a mass market. This evolution is fostering changes in winemaking practices as well as in the conception of wine quality, which imply a departure from the traditions of the industry. Traditional winemaking practices and conceptions of ‘good wine’ were institutionalised in the denomination of origin regulations. These regulations embed each wine within a geographical locus of production, implying a dependence of production on natural contingencies. On the contrary, the exploitation of emergent market opportunities requires a finer control of production. This caused the diffusion of methods of winemaking that allow stabilisation of the quality of wines across time (vintages) and space, loosening the tie between grape and geographical area. Much of this change in production practices has been