Taylor Wines Essay

Taylor Wines Essay
Taylor wines is a family owned Australian premium winery that has been the best named winery in
San Francisco and in the New York international wine competitions. Since they established they
have bagged many critical acclaims including many international awards with the recent 19 gold
medals with the 22 wines in San Francisco and their Jaraman Shiraz which hah been named shiraz
of the year recently at the New York wine competition. The total awards sum up to about 3800
medals, 47 trophies, 418 gold medals and 984 silver medals in just over 30 years. With their vision
of being "Australia's best wine company and proudly family owned" they believe that they have to
work extremely hard in order to achieve financial targets and strategic goals ... Show more content
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Due to this, the wineries which were mostly family operated and were financially in support of other
streams of income. They took support of the limited channels like the cellar door, mail order etc. to
sell their premium wines. While as the larger firms used a variety of brands, obtained high volume
distribution channels via liquor stores and other retail outlets like the supermarkets. Since the
consumer behavior was heavily influenced by buying labels, these retail supermarkets were in the
position to sell the premium wines at a discounted price. In addition to this there were many other
external factors that was impacting the industries growth. In spite of people showing willingness to
support the domestic wine industry the Australian dollar rose against most other currencies during
the global financial crises of 2008–09 and caused a huge price movement. Also, due to the fair trade,
cheaper transport costs and increased interest in international products, wine was becoming
internationally available. But this was easier for those bigger firms who had ventured into
international markets by investing into their local economies, which made things much simpler for
the bigger sharks and harder for the small family operated wineries. But the situation wasn't that bad
back in 1969, when Bill Taylor and sons purchased 178 ha of land in
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Global Wine Wars Case Study
ADVANCED MARKETING MANAGEMENT
CASE REPORT: Global Wine Wars: New World Challenges Old
(Harvard Business School Case # 9–303–056) NMI
1. How did the French become the dominant competitors in the increasingly global wine industry for
centuries? What sources of competitive advantage were they able to develop to support their
exports? Where were they vulnerable?
French wine makers also face challenges that are not internal to the industry. For instance, France
lost market share in the United States due to informal boycotts in the wake of the Iraq war. The rise
of the euro against other currencies, such as the 30% increase relative to the dollar in the last few
years, has put French wines at a comparative cost disadvantage. But ... Show more content on
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The first joint venture was Baron Philippe de Rothschild's venture with Robert Mondavi to create
Opus One in 1979. Gallic presence in the Napa sparkling wine industry is strong as Domaine
Caneros, Domain Chandon, Mumm Cuvee Napa, Pieper–Sonoma, and Roederer Estate are all
owned by French champagne houses. Pernod Ricard owns wineries in Australia, Argentina, Chile
and Spain (Economist, 1999).
Most (90%) production is concentrated in California. Started primarily by French and Italian
immigrants in the late 1800's, California's winemaking tradition is only a few generations old and
was interrupted by Prohibition. A global reputation for fine wine is even more recent, when two
Napa Valley wines won gold medals at a 1976 blind–tasting competition in Paris, a victory
unexpected by the rest of the world, including many Americans (Lukcas, 2000). The US adapted the
French appellation system with over 130 approved American Vineyard Appellations ranging in size
from the multi–state Ohio River Valley to the smallest, Cole Ranch, a 150 acre property in
Mendocino County (Wine Institute, 2003). One of the most acclaimed appellations is Napa Valley.
Most American winemakers also label by varietal if a wine contains at least 75% of that varietal by
volume.
2. What changes in the global industry structure and competitive dynamics led France and other
traditional producers to lose market share to challengers from Australia, United States, and

Port Douglas
Snugly fit between natural splendour, Great Barrier Reef and Daintree Rainforest, Port Douglas has
its own charm that grows on you. What to do in Port Douglas?
Here are some exciting things to do in Port Douglas:
For an intoxicating experience, visit the Shannavale Tropical Fruit Winery. Tease your taste buds
with an impressive array of tropical fruit flavoured wines, and enjoy a personalized wine tasting tour
by the owners.
Experience the magic of 4 different types of habitat–rainforests, wetlands, woodlands and grasslands
at the Rainforest Habitat Wildlife Sanctuary. Enjoy 180 different species in this one sanctuary and
marvel at their uniqueness.
Walking on 4 Mile Beach. This beach with firm sand has been used for, horse, ... Show more content
on Helpwriting.net ...
This is a sure shot winner!
Another way to enjoy the bird view, is to go hot air ballooning. Soak in the quietness and the feeling
that you are floating!
Enjoy a luxurious shopping spree and the reef cruises at the Marian Mirage, with shops on one side
and the beautiful marina on the other side. You have some of the best restaurants, shops at your
disposal.
Port Douglas is well known for its style and sophistication. Visitors can choose from stunning
sailboats or luxury yachts, to the ultimate in high tech marine on the wave piercing catamarans.
Port Douglas, offers you more then you can imagine – an enticing combination of sophistication and
relaxed village life. Plan your trip around this wonderful place and enjoy the thrills this place has to
offer.
If you are looking for an escape from the hustle and bustle of Sydney, Port Douglas is your perfect
choice. And don't feel that you'll be left out of the action, because the place is well serviced with
sailing, diving, snorkelling and fishing tours to the Great Barrier Reef, as well as tours to the
Daintree Rainforest and the Northern Outback. So it's the best of both

ivey Essay
Yellow Tail
Yellow Tail is the leading imported wine in the US. Introduced in June of 2001 by Australian owned
Casella Wines, Yellow Tail sold more than 8.5 million cases in 2008, which is more wine than the
next three Australian brands combined. This success has attracted substantial competition. The issue
for Casella is how to sustain Yellow Tail's growth in the face of emerging competition on a limited
ad budget.
Yellow Tail competes in the $11 billion dollar US wine industry, which is characterized by a high
level of fragmentation and stiff competition. There are over 6,500 wine brands. E & J Gallo brands
command an 18% share of the market and Constellation Wine brands have 13% share. No other
brand has more than a 7% ... Show more content on Helpwriting.net ...
They are unlikely to respond to overt marketing efforts and hard–sell tactics.
Distribution
Yellow Tail's success in US market is attributable in part to its partnership with W.J. Deustsch &
Sons, which gave them immediate distribution in 44 states. Deustsch also imports Georges Duboeuf,
which often sells at a similar price point to Yellow Tail and makes an annual splash with the release
of its Beaujolais Nouveau. As demand for Yellow Tail has grown, management looked for ways to
build its retail presence. Yellow Tail partnered with warehouse outlets such as Wal–Mart/Sam's
Club, Target and Costco. Yellow Tail also has a presence in Whole Foods organic supermarket and
White Hen convenience stores. The goal in acquiring this distribution is to make Yellow Tail
available everywhere and for all occasions – from a late night run to the convenience store to a
fabulous, organic meal.
Product Packaging
Yellow Tail's simple and elegant packaging made it easy to understand the varietal being purchased
and supported the brand's quality image. However, Australian competitors have begun to innovate.
Banrock Station is exploring the Wine Box and The Little Penguin has begun distributing single
serving wine six packs. Yellow Tail management wondered whether it made sense to offer a twist off
top instead of the cork to enhance the convenience of a brand that was consumed everywhere.
Yellow Tail was also considering the introduction of wine six packs

Market Segment Analysis to Target Young Adult Wine Drinkers
Market Segment Analysis to Target Young Adult
Wine Drinkers
Elizabeth C. Thach
School of Business and Economics, Sonoma State University, 1801 E. Cotati
Ave., Rohnert Park, CA 94928. E–mail: Liz.Thach@sonoma.edu
Janeen E. Olsen
School of Business and Economics, Sonoma State University, 1801 E. Cotati
Ave., Rohnert Park, CA 94928. E–mail: Janeen.Olsen@sonoma.edu
ABSTRACT
Consumer segmentation in the wine industry takes on many forms: demographic, geographic,
behavioral, and others+ In the United States, one of the most promising new demographic segments
is the
Millennial or Echo Boomer segment, which is being targeted by many consumer industries due to its
size and buying power+ For the wine industry, this group currently fits ... Show more content on
Helpwriting.net ...
geographic, which is based on where the customer lives, such as country or city; ~2! demographic,
which is based on age, gender, income, social class, and so on; ~3! psychographic, which is based
on lifestyle and personality; and ~4! behavioral, which is based on occasions, benefits, usage rate,
readiness to purchase stage, and so on+ ~ Zikmund, 1999!+
In the wine industry, some of the most extensive research on market segmentation has come from
Australia+ One of the premiere studies was that of McKinna, in which he focused on the geographic
segment of consumers in the South Australian wine industry, and then was able to divide this
consumer grouping more specifically into a psychographic segmentation based on five wine
lifestyles ~ McKinna, 1986!+ This research was further expanded upon and empirically validated by
a cadre of other wine marketing researchers ~ Bruwer, Li, & Reid, 2001; Hall & Winchester, 1999;
Johnson, Ringham, &
Jurd, 1991; Spawton, 1991a!+ The most recent empirical findings using this lifestyle segmentation
suggest that the following five consumer segments are confirmed in

The Consumption Of Wine Consumption
1. Introduction
Forecasting is an essential part to all business as this support the direction the business will be
heading. Looking through wine consumption through previous years will help forecast the future
years. The consumption of wine is growing every year worldwide. Australia is the largest country
that can produce red wines, white wines and other wines in every climate and soil type found
(Australian Government, 2014, para. 14). This report will include a line graph showing the forecast
total apparent consumption in terms of volume of beverage for 2006–2015, a line graph showing the
forecast per capita consumption in litres, who and the purpose the forecast is being used, a line
graph showing the centred moving average for the ... Show more content on Helpwriting.net ...
It shows that the actual volume of pure alcohol and the forecast is nearly the same. It has increased
slightly a little but not dramatically. For the actual result of volume of beverage and the forecast it
nearly the same as well, however the forecast increased in 2014 and 2015. In 2007 the forecast
decreased.
4. Whom and the purpose the forecast is used
The forecast used in this wine consumption shows different trends in the future. Forecast is using
previous data to determine the future information in the wine industry. Hence, forecasting is
important as this can predict how much white table wine, red table wine, other wines and the total
wine consumption for the future. An example can be liquor shops because they can use the forecast
from the wine consumption to see how many wines are being bought from customers in the future as
this can help the liquor shops determine how many wines they need to buy to supply for the
customers. Also bars might like to look through the volume of pure alcohol and the consumption
from customers to see how many they will need to purchase.
However, forecast is never accurate, it is an estimation of numbers for managers to look at so they
have a number to look at so they can purchase the products but forecast is a number that is close to
the actual result.
With forecasting the per capita consumption for wines, Australia's government can use the results
from

Socio Economic Environment Of Sunshine Wines
Introduction
Sunshine Wines is an Australian company that specializes in organic wine production. It is located
in Queensland, Australia. Sunshine Wines is looking to analyze the potential between two countries
specifically: Singapore and Sweden, for exportation and company expansion.
Socio economic environment of Singapore
Singapore is a very competitive country with regards to its economy. It is an ideal place to start a
business as it has risen its rank from number seven to number six on doing business according to the
World Bank (2017). Although this country is highly competitive, the economic situation of
Singapore is being affected as it is dependent on exports. Because of recent changes in the global
economy, Singapore faces weak global exportation demands, contributing to Singapore's economic
situation is the restructuring of the Chinese economy as their economy has since slowed down. even
so, the government is expected to remain stable for 2017 as the government has developed plans that
focuses on the investments of certain sectors of the economy. The population of Singapore is
steadily rising with an estimated two hundred sixty–one million people in 2016 (The World Bank,
2017).
Socio economic environment of Sweden
According to the global market, Sweden is at the sixth place among the rankings for ease of doing
business. It is considered to be highly competitive despite their economic activity to slow down in
2017. Even so, it's central bank has helped the

Wine Consumption Essay examples
Southern Peninsula Wines
Content
1. Organisation overview
a. The organisations mission or vision
b. Strategic goals of the organisation
c. Capabilities of the organisation
d. Product/s of the organisation under consideration for entry into an international market
2. Global Business Environment
a. A brief overview of the current global business environment.
a–1. Figure 1&2 wine consumption a–2. Top 10 wine consumers a–3. Changing in total wine
consumption
b. Discuss any market trends or developments that are relevant or may impact on the organisation
1–a. The organisations mission or vision ... Show more content on Helpwriting.net ...
Over that period, per capita wine consumption fell 3% per annum, while total world wine
consumption fell 1.4% per annum from 29.4 million tonnes to 22.0 million tonnes.
The decline in global wine consumption from 1980 to 2000 is the consequence of global population
growth being biased towards non–wine–consuming regions (i.e. Africa, Middle East and Asia) and a
changing alcohol consumption pattern in traditional wine consuming regions.
For example, total alcohol consumption in Europe has declined over the past few decades while beer
and spirits have increased market penetration.
a–1. Wine consumption

[pic]
a–2. Top 10 wine consumers
Unsurprisingly, the Europeans dominate global wine consumption. The French consumed nearly
54L/person in 2006, followed by the Italian's with 47.2L/person/year. In total, the French consume
3.3 billion litres of wine per year, or 14% of the world total, followed by Italy with 2.7 billion litres.
[pic]
a–3. Changing of the guard
Despite dominating world league–tables, wine consumption in the traditional old–world countries is
falling, both in total and per capita terms. For example, in the 11 years to 2006, French wine
consumption fell by over 9L/person/year, and total French wine consumption fell nearly 400 million
litres. Italian wine consumption fell 461 million litres over the period.
There is somewhat of a changing of the guard in the world of wine. New–world consumers

India 's Promotion Of Wine Tourism
"VITICULTURE AND VINIFICATION" TWO FUNDAMENTALS IN PROMOTION OF WINE
TOURISM IN INDIA
Dr. Bharat Sharma
Head of Department, Hospitality & Business
Australian Education Academy, Melbourne Australia
Email: bharat4sai@gmail.com
Abstract:
'With world economy struggling in its way and looking for alternative options, India's wine tourism
is poised to achieve a great boost if right direction and promotion are given. Even though wine
production has a long history in India, there has not been much of growth in this Industry for a long
time until recently, where some results are surfacing.
This paper explores tourism opportunities in promoting viticulture and vinification as a tool for
development of wine tourism which in return has a wider ... Show more content on Helpwriting.net
...
To cater these potential customers we are in dire need of quality professionals for current and future
job market in Hospitality Industry. With the promotion of wine tourism, F &B service professionals
with right skills are needed to deliver required service. In the current scenario where people have
started to use spare money and time, there is a wide scope of introduction of wine as a drink with
food in general masses. As we have burgeoning middle class with spare money and time, there is big
market to cater at home front.
The process of preparation, production, storing and service of wines itself involves lots of
employment opportunities and economic potential. With cheap labour in India we can do lot more
than developed countries of west and give good competition in quality and price for the production
and preparation of quality wines. India can certainly be favourite outsourced destination for
production of quality grapes for wine production and even become producers of finest wines.
As vinification requires professionals to prepare wine hence promoting vinification will enhance
many outlets for source of wine as a drink along with dinner, rather than spirits. Once the difference
of spirits and wine is established, we will see a lot of demand for wines.
Hence viticulture & vinification can bring International recognition to Indian wines and due to
cheap labour India will see a boom in wine tourism. At the same time we will require

Wine As AAlcoholic Beverage That Can Be Easily Evaporated...
1. Introduction
1.1 What is wine?
Wine is an alcoholic beverage that can be easily evaporated while left in room temperature. The
plant source of producing wine is grapes. Common examples of grapes that are used to produce
wine are Chardonnay, Cabernet sauvignon, Gamay and Merlot. To obtain wine, the plant sources
that are grapes that consist of sugar must be crushed and added with water to produce mesh for
fermentation with the presence of yeast. During fermentation, the yeast feeds on the sugar and
results in producing carbon dioxide and ethanol which is known as alcohol.
1.2 Types of wine
Wines can be categorized into two which are old world wine and new world wine. The countries that
produced old world wine included France, ... Show more content on Helpwriting.net ...
The most famous producer of sparkling wine around the world is France and the sparkling wine is
named as champagne. Fortified wine is also known as liqueur wine. Fortified wine is light wine
which added spirit or brandy and it contains 15% to 22% alcohol content. Fortified wine is not spirit
but is alcohol. These are flavouring products which taste sweet. The well–known fortified wines
around the world are sherry which is from Spain, Port from Portugal and also Vins doux naturels
from France. Aromatized wines is also known as vermouth and it is basically from light wines
which added with spirit and flavouring. For example, Cinzano, Dubonnet, Martini, Noilly Prat and
Chamberry. The alcohol content of this products is around 15% to 22%, same as fortified wines.
Aromatized wines can be serve as aperitif.
Next will be introduce about the red wine. Red wine are made from the red grapes and fermented
the grape juice which contain sugar. The grapes that using to made the red wine for examples
Merlot, Pinot Noir, Gamay and others. The alcohol that contain in red wine average are 10% to
15.5%. There are many red wine for example Shiraz, Barbera, Pinot Noir, Tempranillo and others.
Besides, white wine are yellow or yellow– gold in colour. For the white wine the white grapes are
not give the colour to the wine. White wine are made from the white grapes for examples
Chardonnay, Colombard, Chenin Blanc and others. The alcohol that contain in white wine average
are 10% to

Production Of Wine Production : Viticulture And Wine Making
Viticulture denotes to the cultivation, growing, and harvesting of grapes for the means of wine
production. It is a global agriculture activity that encompasses the production of wine at vineyards
by the use of grape growing. Viticulture is a rich and thriving industry which is demonstrated
through of the aspects of its nature, spatial patters, and future directions of viticulture on a global
scale.
On a global level the wine industry involves two major undertakings: viticulture and wine making.
Viticulture is a branch of the horticulture science, exploring the production, study, and science of
grapes, while winemaking refers to the production of grapes in order to produce wine. A variety of
wines can be made including red wines, white ... Show more content on Helpwriting.net ...
These specific climate conditions assist in growing grapes to their desired quality to produce wine,
rarely are grapes grown out of these regions with growers having to adapt to local conditions.
Globally, viticulture spatial patterns can be partly identified by a large new world grape growing
increase. According to table 1.1 China has overtook the old world countries in grape growing at 14%
globally, a large increase from China's previous position in 2005. Although with this increase of
grape growing in China new world countries still account for the largest area of vineyards. There are
7,519,000 million hectares of vineyards globally with Spain having the largest amount per country
at 1.02 million as seen in
Table 1.1: Grape Growing Trends. in graphic 1.1. France, Italy, and Spain together account for 59%
of all wine exports and Chile, Australia, and the United States 14.4%. Continuing the lead of old
world countries in viticulture with new world countries global stance steadily increasing.
The current trends in global wine consumption and production are exemplified by new world and
old world wine patterns. The global wine industry consumption patterns are relative toward the
production patterns, with many top producing countries also being the top consuming countries. As
seen in the below graphic 1.1, France, Italy, Spain, and the United States all come out ahead in being
the worlds top four wine producing countries.

Wine War 2009
Table of Content
Preface 1
1. Introduction 3
2. Case analysis 3
In the beginning 3
Political influence in the Old World 3
A New World was born 4
Global Wine War 4
The battle of the US market 4
3. Theory & application to the case 5
Porter Outside–In Model 5
Porter Outside–In model & the Global Wine War 6
The Resource Based View Inside–Out Model 6
The Resource Based View Inside–Out Model & the Global Wine War 7
Innovations 7
Red Queen competition 7
4. Conclusion 8
References 9
2. Case analysis
In the beginning
The first niche market for premium wine was created by the European nobility in the middle ages.
They started to compete based on the quality of wine. Until the late 18th century, the size European
vineyards were ... Show more content on Helpwriting.net ...
Besides this, the size of companies also gave the New World an advantage.
To respond better to consumer preferences, brand power became important in the global wine
market. The New World companies owned 14 of the top 10 wine brands in 2007. Still, the Old
World was not able to keep up with the competitive environment created by the New World. Due to
old regulations in the Old World, they were not able to move to a more market driven policy.
In the Old World, the declining demand caused a loss of share in export markets. Consequently, this
caused a structural wine surplus. The wine surplus in the Old World caused the global wine market
to lower their prices. Here, the challenge for the New World was to create a better image and move
out of the competitive low price market.
The battle of the US market
The US market was called the most attractive market in the world. However, this market was hard to

reach because of the distance, regulations and the complex three–tier distribution system through the
different states. When regulations changed, importing was made more easier.
The attractiveness of the US market was due to Generation Y who embraced wine much more than
Generation X. These consumers were price–sensitive, internet savvy, and well educated about their
purchases. Furthermore, these consumers chose more for imported wine. The result of this
attractiveness is that the US became a huge player in the

BSBMKG605B Evaluate International Marketing Opportunities...
Market review
Submission details
Candidate's name
Phone no.
Assessor's name
Phone no.
Assessment date/s
Time/s
Instructions to Students
1. You must accurately complete the Student Assessment Pack.
2. Your Assessor may want to discuss written answers with you to get further evidence of your
understanding and to check that it is your original work
3. You need to submit Assessment Cover Sheet for each assessment.
4. You are permitted to use dictionaries and to seek support, as required.
5. Where your work has been deemed as unsatisfactory, you will be permitted to resubmit the
assessment. Refer to RGIT reassessment policy and procedure.
6. Unless the assessment task specifically allows pair work or group activities such as ... Show more
content on Helpwriting.net ...
Your assessor will be looking for: whether you have clearly identified a viable international market
for entry by the organisation outlined in the case study provided whether you have conducted
sufficient research to assess and analyse the market a market review report that includes detailed
research organised under the headings listed in the procedure.
Adjustment for distance–based learners: no variation of the task is required a follow–up interview
may be required (at the discretion of the assessor). documentation can be submitted electronically or
posted in the mail.
Case study: Bonatelli Wines Pty Ltd
Bonatelli Wines is located in the heart of the McLaren Vale wine district in South Australia. A
producer of fine boutique red wines, the winery is located on a 65 acre property surrounded by

estate vineyards producing Cabernet Sauvignon, Shiraz and Merlot.
The business is owned and operated by Tony Bonatelli and the mission is simple: produce quality,
boutique wine at a reasonable price, with the aim of building customer loyalty and securing repeat
purchases. Tony's goal is to establish and maintain a thriving family business that provides an
enjoyable lifestyle and comfortable standard of living.
In Australia, Bonatelli Wines has no branded product for sale, initially selling its produce in bulk to
larger wineries. However, they have now successfully launched a range of bottled red wines

Financial Statement Analysis : Australian Vintage Ltd
FINANCIAL STATEMENT ANALYSIS
ANALYSIS OF
PREPARED BY: MALIK JAMSHAIN ANJUM
STUDENT ID: 151MAM5012
TABLE OF CONENTS:
INTRODUCTION. COMPANY PROFILE
SWOT ANALYSIS. INTERNAL AND EXTERNAL
FINANCIAL PERFORMANCE: RATIO ANALYSIS
1. PROFITABILITY
2. LIQUIDITY
3. EQUITY
4. VALUATION
5.
COMPANY PROFILE:
AUSTRALIAN VINTAGE LTD details
Winemaking, wine marketing and vineyard management
Issuer code AVG
Official listing date 26/03/1992
GICS industry group
Food, Beverage & Tobacco
Exempt foreign? No
Internet address http://www.australianvintage.com.au
Registered office address 275 Sir Donald Bradman Drive, COWANDILLA, SA, AUSTRALIA,
5033
Head office telephone 08 8172 8333
Head office fax 08 8172 8399
Share registry COMPUTERSHARE INVESTOR SERVICES PTY LIMITED
LEVEL 5, 115 GRENFELL STREET, ADELAIDE, SA, AUSTRALIA, 5000
Share registry telephone 1300 787 272
Directors/Senior management:

Mr Ian D Ferrier Chairman, Director
Mr Neil McGuigan CEO, Executive Director
Mr Richard Davis Director
Mr Perry R Gunner Director
Mr Brian J McGuigan Director
Mr Mike Noack CFO
Company secretary:
Mr Mike Noack Company Secretary
Australian Vintage Limited is a leading Australian wine company. Championing a fully–integrated
wine business model, the breadth of our capabilities extends to vineyards, boutique and bulk wine
production, packaging, marketing and distribution. As one of the largest vineyard owners and
managers in Australia, Australian Vintage

The Competitive Advantage Of The Wine Industry
In the world of increasingly global competition every nation want to prove its product as the best in
the world. This phenomenon is called the competitive advantage of the nation, this can only be
created and sustained by immense sense of product knowledge, competition domestically and
internationally. Wine industry is the one which faces the competition between the traditional wine
makers of the old world and the sophisticated wine producers of the New world. The healthy
competition among the producers and suppliers makes the consumers successful by providing the
best quality. The Old world refereed here constitutes the countries in Europe specifically France,
Italy and Spain and the New world refers to US, Chile, Argentina and Australia. France's dominance
of the wine industry has increasingly come under threat from emerging wine producers who are
more aggressive in marketing their product in the markets previously dominated by France.
Although France is still the world's largest wine producer, it has seen a substantial decline in its
global sales over the last one decade arising from a number of factors; some of them internal and
others which are external. In this case study we will be discussing about the Diamond of National
advantage and how the determinants creates the national environment in which the companies
compete with respect to the Wine industry. The

Chilean Wine
9–503–044
REV: NOVEMBER 17, 2005
DAVID ARNOLD HOWARD STEVENSON ALEXANDRA DE ROYERE
MontGras
Export Strategy for a Chilean Winery
In November 2001, Patricio Middleton, CEO of Viña MontGras, a $7 million Chilean winery, was
driving through the Colchagua Valley to meet American journalists from Wine Enthusiast magazine.
Looking at the endless vines that surrounded him, he wondered how those newly planted grapes
would find a market. Chile, the world's 10th–largest wine producer, had enjoyed an export boom in
the 1990s and had grown to become the fourth–largest wine exporter, its wines positioned mainly in
the lower end of the fine–wines price range. (See Exhibit 1 for world wine production and exports,
and Exhibit 2 for price ranges.) ... Show more content on Helpwriting.net ...
Nevertheless, the industry remained fragmented, with the largest player, Californian E&J Gallo,
accounting for 1.5% worldwide market share.1 The industry was also in transition at the consumer
and distribution levels.
Old World versus New World
The Old World wine industry, centered on France, Italy, Spain, Portugal, and Germany, was
characterized by long–standing traditions of wine production, industry fragmentation, high levels of
regulation from production to labeling and marketing, and strong domestic markets. Most Old World
wines were made from a blend of different grapes and were named after the growing regions
themselves, such as Bordeaux, Chianti, or Rioja, which resulted in considerable complexity of
designation–for example, the French regulatory system included 450 different apellations d'origine
controlées (AOCs, or registered origin names). The Old World philosophy of wine production was
based on the importance of terroir (terrain), which assumed that every vineyard was unique because
of differences including soil, microclimate, topography, and the skill and practices of the winemaker.
The New World wine industry, dominated by Australia, the United States, South Africa, Chile, and
Argentina, was more concentrated and more focused on exports. In addition, the lack of stringent
regulation in the New World had spurred innovation in production processes and a more scientific

Wine Strategic Plan Essay
I. Executive summary The quality and reputation of wellington wine have a key role to play in
strengthening wellington wine's brand promise of being a vibrant and welcoming place that
celebrates the good things in life. Wellington wines core brand attribute of being Australia's home of
exceptional wine and produce, complements other core brand attributes of un spoilt nature at close
proximity, enterprising tradition of creativity and innovation, and a beautiful city and festival spirit.
The Strategic Plan target is to achieve an increase in Australia wine market from $50 billion in
2011–2012 to $57.5 billion in 2012–2013. The wellington strategic Plan identifies the priority
strategies to achieve this target. One of these ... Show more content on Helpwriting.net ...
* Lack of resources for grower organizations to meet increasing demands for relationship
management in the wine industry value chain, with government and the general community * Lack
of capital for small growers and wineries to fund new initiatives and market opportunities
Opportunities * To grow the market for the future of this company will be win more market share in
line with increasing Australia wine consumption, * With the growing consummation of wellington
wine in Australia market line increasing per capita wine consumption. * Promoting the wellington
wine for food service and hospitality sectors in amongst Australia and overseas traveller, promoting
worldwide who are seeking quality branded wines building high level collaboration in the value
chain for increasing competitiveness in the world wine market, * Developing wine grape grower
relationships with the Australian Government through the Industry Partnerships Programmers.
Threats * There are a number of very serious economic threats that cloud the short term outlook. *
Domestic inflation is high in Australia, the governments keep rising the tax。 * Production costs are

The Components Of Wine Prices
Components of Wine Prices When people walk in a wine shop or grocery store's wine aisle, there
are often hundreds of wines with different price on display. The consumer may wonder what is the
difference between a thousand–dollar wine and a twenty–dollar wine. On the bottle of wine, a
typical label shows a lot of information. How to use those informations to evaluate the true value of
wine definitely is a challenge. Even though consumer can easily find the quality rating of wine
which published by various wine writers and critics; however, the wine writers' opinion can
influence consumer perceptions. Therefore, analysis the internal and external impact on wine prices
helps consumer make a wise decision. According to a wine marketing research in Australian
Marketing Journal, wine's brand name, geographic region, grape types, fermentation method and
vintage date are the main components that affect wine prices (Ling and Lockshin 19). Knowing
where a bottle of wine comes from, what types of grape used and the reputation of its winery can
help consumer have an idea how much it worth. Wine is produced in many countries throughout the
world, but only a few of countries has developed a wine brand in order to obtain benefits from this
industry (Aranda, Gomez and Molina 2057). Therefore, building brand image is a necessary step for
wineries to increase reputation and competitiveness. Successful wineries focus on providing
customer satisfaction in order to create higher reputation.

Global Wine War 2009, Old World Versus New World
18–10–2011 Authors:Femke de Jong – s2226197Martje Kiemel – s2247852Fatima Mourhiya –
s2161516Linda Verkerk – s2224194 | | case paper: global wine war 2009 |
| case paper: global wine war 2009 |
Preface
The assignment for this week was to write a paper based on the case Global Wine War 2009: New
World versus Old. We experienced that it was an interesting case considering both Porter's five
forces model and Resource–Based theory, because they give two different perspectives of
competitive advantage: Outside in and Inside out. Besides that we could have a closer look at
innovations and what they mean for the competitiveness in the world wine market. In this paper we
make an effort in explaining what the main aspects ... Show more content on Helpwriting.net ...
For example, the Appellation d'Origin Controllée (AOC) law in France. Italy followed France and
also introduced laws and regulations. Producers supported these laws and regulations, they saw this
as an opportunity to differentiate their wine and raising the entry barriers. In a later stage other
regions in France were given the, usual lower ranked Vin Delimités de Qualite Superieure (VDQS)
and the, even lower ranked Vin de Pays, inexpensive but very drinkable wines for French tables and
increasingly for exports. Although this movement was quite rigid, due to a belief that quality was
linked to terroir.
A New World was born
In the last quarter of the 19th century, the 'phylloxera' from the 'new world' caused the devastation of
the French vine stock which led to an enormous decrease of wine supply, while demand stayed at
the same level. The French solved this problem by importing vine roots from the US that were
resistant for the 'phylloxera'.
At this point, the New World outperformed the Old World. Compared to the Old World, the New
World had several advantages. First, suitable land was widely available and less expensive. Second,
the New World began to experiment with wine technologies which led to great innovations in the
wine industry. Because of these innovations, the costs of producing a tonne of wine in the New
World decreased drastically compared to the Old World. The third advantage of the New World
occurred in the distribution. The New World wine companies

Essay on Australian Wine
Wine it is a fundamental component of many Australian's day to day life, being closely related with
both business and pleasure. Whether it be a quiet drink on a Friday night to a career in wine
manufacturing, wine affects the lives of many daily. Not only does wine affect the individuals of
Australia, it forms a lucrative industry, employing 28000 people in both winemaking and grape
growing (2006 Census of Australia), with Australia being ranked consistently as one of the top ten
wine producers in the world. Wine production is a growing industry, with exports totalling $2.87
billion in 2006–2007 an increase of 4.4 percent over the previous year. Annually, Australia produces
1.4 billion litres of wine (Australian Government, 2010). ... Show more content on Helpwriting.net
...
Fermentation is a process that has two distinct phases, these being; primary and secondary
fermentation. Primary fermentation focuses on the addition of yeast to crushed grapes. The yeasts
multiply, via asexual reproduction, enabling the sugars found in grapes; glucose and fructose, to
convert into ethanol and carbon dioxide (author unknown, 2005), as seen below:
Glucose  Ethanol + Carbon Dioxide + Energy
C6H12O6  2CH3CH2OH + 2CO2 + Energy
Figure 2: equation for the fermentation process
Author Unknown, 2010
Therefore the greater the amount of sugar added to the grape juice (before fermentation), the greater
the alcohol content at the end of the process. The carbon dioxide produced is released into the
atmosphere, whereas the ethanol is harnessed into the mixture.
After the wine has undergone primary fermentation, secondary fermentation begins. During
secondary fermentation, the wine is sealed into an air–tight container, prohibiting the entry of any
new sources of oxygen. This stage of fermentation occurs much more slowly and allows the wine to
further improve its general flavour and aroma. This allows yeast to concentrate on fermenting over
reproducing as oxygen is no longer available. The yeasts will stop fermenting, once the alcohol
content of the wine reaches a concentration of fourteen percent. This is because the yeasts can no
longer survive in

Grenache Research Paper
Grenache also known as Garnacha is one of the most widely planted red wine grape varieties in the
world. It ripens fairly late, so it needs hot and dry conditions such as those found in variuous parts of
the Medertaranean. The Grenache grape is likely to have originated in Spain. It is also grown in the
south of France, and various regions in California, where the grape benefits from its tolerance to
heat and drought. Wines made from Grenache tend to be low on acid, tannin and colour, and are
usually blended with other varieties.
In France, Grenache is most widely associated with the wines of the Rhone and southern France. Its
history in the Rhone is traced back to Burgundy where wine makers added Grenache to their Pinot
Noir grapes to add

Origin Of The Wine Equalisation Tax
Introduction 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. ... Show more content on Helpwriting.net
...
Clearly, wine taxation is a complicated process.
History of the Wine Equalisation tax Interestingly, the Australian wine industry has been subject to a
variety of supplemental taxes since as early as 1930 (Lang, 1999). In 1930 a general sales tax of 2.5
per cent was applied to Australian wine (Stubbs 2013). This sparked an outrage among winemakers.
The winemakers were frustrated because beer was one of the few items that was exempt from the
tax, and they felt that wine should be exempt as well (Stubbs, 2013). However, the winemakers
failed to realize that beer was not included in this sales tax because it was already subject to the
excise tax (Stubbs, 2013). Fortunately for the wine makers, they were able to persuade the
government to remove this tax on wine. As a result, Australian wine was added to the list of exempt
items in 1931. Australian wine then remained tax–free for several decades. The next tax on
Australian wine occurred in 1970 when the federal budget proposed to place a moderate excise of
fifty cents per gallon on locally produced grape wine as a result of increased wine consumption
(Stubbs, 2013). Another possible explanation for this tax on wine was to take advantage of the
profitability of this industry, as well as to be fair to the heavily taxed beer industry (Stubbs, 2013).
In addition to the tax on local wine, this proposal also included an increase of fifty cents per gallon
on imported wine. This

Robert Mondavi 's Company : A Premium Wine Making Company
Robert Mondavi's company is a premium wine making company he founded in 1966. The company
is located in California and has grown to become one of the world's finest and most innovative wine
makers over a period of 35 years. The company has over the past enjoyed impressive growth
evidenced by earnings per share growing by 28% since 1994 and market value rising to
approximately $600 million. Robert Mondavi grew his company through acquisitions such as the
purchase of Woodbridge winery and making major investments in the form of new wineries across
California. Robert Mondavi entered the popular premium segment in the later 1970.The company
also entered into a number of joint ventures and partnerships to produce premium wines.
Key pressing ... Show more content on Helpwriting.net ...
The growth in popularity of imported wines from Australia and Chile further increased competition
in the US wine market. Another major competitive threat is the entry of larger firms into the
premium wine market segment. These firms have low entry costs due to their pre–existing market
access to retail outlets and distribution networks in the country. The advent of global alcoholic
beverage companies that were acquiring wineries in the US to complement their beer and/or distilled
businesses further intensified competition in the wine industry.
b. Technological advancement and innovation
The wine industry has in the past made strides in the application of technology in the grape growing
wine making process and the introduction of innovative new products. The use of technology and
automation was used by New World producers to enhance the consistency and the quality of their
wines and reduce operating costs. Robert Mondavi's work with NASA in 1993 to apply remote
sensing and digital mapping technologies to enhance vineyard management illustrates the company's
commitment to technological progress and innovation in its wine making business. Investment in
technology led to introduction of capsule–free, flange–top bottle by Robert Mondavi, single–serve
bottles, premium non–cork stoppers and clear pressure–sensitive labels by the Sutter Home winery.
c. Economic environment
An economic slowdown in the US

The Australian Wine Industry
CONTENT
Title Page
Introduction – Background & Issues 1 – 2
Financial Analysis 3 – 8
Summary of Financials 9 – 13
Significant key opportunities and risks for the company 14 – 15 and investors in McGuigan
Other financial and non–financial factors that impact upon 16
McGuigan 's performance and attractiveness as an investment opportunity Limitations of the
analysis & implications of these limitations for 17 – 18 any investment decision
Appendix A: References 19
Background & Issues
The Mcguigan interest in the Australian Wine Industry goes back four generations. Owner Patrick
McGuigan the first of four generations to enter the wine industry was a dairy farmer by trade.
Percy ... Show more content on Helpwriting.net ...
2.41:1
Quick ratio
2005 ($ '000) 2004 ($ '000) 2003 ($ '000)
12728+361288+
120698
124905
= 494714

124905
= 3.96:1 2654+332641+
126534
135304
= 461829
135304
= 3.41:1
773+270452+
125028
105775
= 396253
105775
= 3.74:1
Current Cash Debt Coverage Ratio
2005 ($ '000) 2004 ($ '000) 2003 ($ '000)
2523
124905+135304/2
= 2523
130104.50
= 0.019 times 5768
135304+105775/2
= 5768
120539.50
= 0.047 times (10040)
105775+119523/2
= (10040)
112649
= (0.089) times
Receivables turnover ratio
2005 ($ '000) 2004 ($ '000) 2003 ($ '000)

320422+47628
120698+ 126534/2
= 368050
123616
= 2.97 times 262025+43683
126534+125028/2
= 305708
125781
= 2.43 times
248381+35069
125028 +87486/2
= 283450
106257
= 2.66 times
Average collection period in days
2005 ($ '000) 2004 ($ '000) 2003 ($ '000)
365
2.97
= 123 days 365
2.43
= 150 days
365
2.66
= 137 days
Inventory turnover
2005 ($ '000) 2004 ($ '000) 2003 ($ '000)
(276939)
60018+51176/2
= (276939)
55597
= 4.98 times

(216777)
51176+32271/2
= (216777)
41723.5
= 5.19 times
(209354)
32271+15817/2
= (209354)
24044
= 8.70 times
Average Days in Inventory
2005 ($ '000) 2004 ($ '000) 2003 ($ '000)
365
4.98
= 73.29 days 365
5.19
= 70.32 days
365
8.70
= 41.95 days
Solvency Ratios
Debt to total assets ratio
2005 ($ '000) 2004 ($ '000) 2003 ($ '000)

Analysis of the World Wine Market Essay
Analysis of the World Wine Market
TABLE OF CONTENTS
1. Introduction............................................................... 1
2. World wine producers...................................................... 1
3. World wine exports..........................................................2
4. France productions, exports and international image................3
5. Success of New World over the Old World : key factors..............4
6. Evaluation of different strategies......................................5–8
6.1 Premium & Standard wine market
6.2 Creation of an accessible French brand
6.3 The Global wine company (acquisitions and mergers)
6.4 Appellation d'origine controlee and competitive disadvantage
6.5 Protectionism versus being marketing oriented
7. World wine market: long term predictions.............................8
8. Conclusion..................................................................9
1. Introduction ... Show more content on Helpwriting.net ...
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.
Lowered domestic sales may result in a greater emphasis on exports, however the recent trend
showed how French exports continue to loose market share to the New World (see diagram below).

Global Trade Atlas–Global Trade Information Source 2004
Considering France international reputation and image, it is useful to analyse its strengths and
weaknesses, taking into consideration the important differences existing between standard and
premium market.
Strengths: France remain quality leader in the premium market; its international image express
Sophistication, Tradition and Charm.
Weaknesses: There are many weak points to be addressed . The puzzling classification and labeling,
the unreliable quality, the rigid "appellation d'origine controlee" which dictates strict rules on
methods of production (see more details on par.6.4) . Its international image is often seen as

Global Wine War
Global Wine War
By Christopher A. Bartlett
Case Analysis Report
Introduction
The concept of production and sale of wine was originated in the European countries known as the
old world according to the article "Global Wine War 2009: New Word versus Old" these are; France,
Italy, Spain and Greece. Here the wine culture was developed mainly due to the habits of religion
and high society which caused them to have the highest consumption per capita in the world,
creating a very attractive and important industry for the governments of those countries.
On the other hand, countries known as the New World, have advanced in this industry breaking
paradigms, using marketing strategies that allowed them to gain market share and to weaken its ...
Show more content on Helpwriting.net ...
Within the distribution variable, new world countries are able to skip a step in the value chain,
taking better control of it, coming directly to retailers without going through distributors. This has
helped them to quickly address changing trends and demands of the consumer.
Within the marketing umbrella, new world producers had broken paradigms using wine box
packaging for sale and creating new segments of wine classifying these by the type of grape, which
caused that consumers begin to compare what kind of wine to buy, its origin, grape, and quality
before buying.
Finally, the governance factor has played an important role, through their legislators and industry
associations from each country. Originally, France began to tax to owners of vineyards, as it started
to be a major industry, which was very attractive to the government, while in New World countries
there is more freedom to produce and sell wine internally and for its production and export.
The combination of these factors made the old world countries lower their market shares, the per
capita consumption, while new competitors were created mainly in the New World countries that
have managed to respond faster the consumer needs.
3. What advice would you offer today to the French Minister of Agriculture? To the head of the
French wine association? To the owner of a

Wine Making: The Malbec Grape Essay
Malbec grape
Malbec is a one of the purple grape varieties which is belonging to Vitis Vinifera used for red wine
making. Because Malbec is one of the six grapes permitted for blending red Bordeaux wines, it has
become popular and widely grown in South West France in last several decades. Moreover, in
Argentina it has become the leading variety. The Malbec tends to have a very dark inky color and
robust tannins, and usually it is berry fruit flavour and spice finished. It is also called Auxerrois or
Côt Noir in Cahors, called Malbec in Bordeaux, Pressac in other regions, and it has extensive more
than 50 varietal synonym names (Robinson, 1986).
History of Malbec
Malbec is originated in Cahors region in South West France, and widely planted ... Show more
content on Helpwriting.net ...
The best growing conditions for Malbec is the combination of warm sunlight in daytime, cool
temperature in the night, runoff for irrigation and a long growing season. Generally, the vineyards in
a high altitude are suit for planting, and "the best suited vineyards are at the altitude between 2000
and 3500 feet above the sea level" (Franz, 2004). The well–drained soils and well irrigation are also
required. In addition, the Malbec variety is also very sensitive to viticultural hazards, such as frost,
and more susceptible to grape disease such as Downey mildew. However, with the development of
new clones techniques and vineyard management, these potential problems can be controlled to a
large extent ("A short history of Malbec"). As a result, the Malbec regions are not only restricted

Brl Hardy Case Study
Case Study 1 : BRL Hardy: Globalizing an Australian Wine Company
To: Chris Day, Group Strategic Planning Manager (BRL Hardy)
From: Strategic advisor
Re: Evaluation of BRL Hardy's strategy for today and tomorrow
Table of Contents:
1. Report Objectives
2. Executive Summary
3. Industry Background
4. BRL Hardy Background
5. Issues within the Wine Industry
6. Implications for Attaining a Position of Competitive Advantage
7. Recommendations
1. Report Objectives
BRL Hardy wants to understand the relevancy of its current group strategy within the wine industry
today and study the viability of this strategy moving forward. In particular, BRL Hardy wishes to
understand the issues and implications that will be encountered by the ... Show more content on
Helpwriting.net ...
Given wine's history, the market for wine is almost truly global. However there is disparity within
the "development" of the consumers within different segments of the market, the segments being
largely geographically defined. This development is often tied to disposable income, whereby those
with higher disposable incomes have the available resources (time and money) to become educated
in how to choose a "quality" wine. The biggest markets, particularly as export markets from
Australia, are the U.K., U.S.A., Germany and Japan (Australian Wine Industry Association, courtesy
of Exhibit 2 of the case study).
The producers of wine are segmented and again this segmentation is geographically based. There are
the "Old World" producers from Europe: France, Italy and Spain. Then there are the "newly"
emerging "New World" producers from U.S.A., South America, South Africa, Australia and New
Zealand. Most wine produced is sold within the country of production.
Australia's wine industry is relatively young (a couple of hundred years) but well–developed
technologically. However despite being the second largest exporter outside of European countries,
its exports only account for less than 2% of world wine production (2.5% by value). There is a well

crafted Australian national wine brand that is well respected internationally and attracts premium
prices for Australian wines in most

Global Wine Wars Essay
1. Briefly describe the changing economic geography of the global wine industry in terms of
production, distribution and consumption.
The Global wine industry has undergone a monumental change in terms consumer demand and
more importantly in the ways it is produced and sold. The consumption, distribution and production
has migrated away from the restrictions and regulations of the Old World to the New World ways of
smart marketing, branding and serving to customers preferences.
Middle ages emerged as the time when Europe served as the niche market for premium wine. But by
and larger grape growing and wine making gradually became a fragmented business. Up to mid 20th
century, wine was predominantly produced in European countries ... Show more content on
Helpwriting.net ...
It soon became home to premium and super premium wines. The standards and quality of the wines
produced helped France gain a reputation in global wine industry. France beat easily other countries
in terms of import value.
Lastly, French producers were able to increase production and expand into the global market, as
they took advantage of the fact that they were the first to experience technology and innovations
such as glass bottles, pasteurization and so on.
3. What theory or theories of trade best explain the French wineries' ability to develop their industry
of wine in the 18th century?
The trade theory that best explains the development of wine industry in France is "mercantilism".
Traditionally, wine was sold in bulk to merchant traders– négociants in France. Another trade theory
was "Absolute advantage" to some extent. By mid 18th century grape growing and winemaking
supported 1.5 million families and an equal number in wine related businesses. It was the country's
second largest export. France, as an early entrant into the wine industry, accrued First–mover
advantages by becoming the first niche market for premium wines and thus gaining Economies of
Learning. The French government defined regulations and boundaries and codified them under the
Appellation d'Origin Controllée (AOC) laws of 1935. These set the standards for vineyards and
wine makers in terms of varieties yields required growing practices and so on. Later, other wine
regions of France

The Valley Wine Company Increase Production Of Good...
Executive summary
The big goal and major objective of this plan is to enable The Hunter Valley Wine Company
increase production of good quality wine to meet the increased demand for wine in China,
Singapore, Japan, South Korea and other Australian and International major wine distributors which
occupy a significant niche in the Asian wine markets. Hunter Valley Wine Company is facing tough
competition from other Australian wine distributors who are beginning to exert pressure to either
increase production of high quality wines or be faced out of the market. Australia has been
accredited with production of high quality wines and the demand for the product is overwhelming in
Asian markets. Other objectives set to be achieved by ... Show more content on Helpwriting.net ...
They will also be required to evaluate whether the objectives are met by carrying out annual
assessments and reviews.
Introduction
HVWC was established in 1990 by the Smith family and over the years, the company has managed
to upscale its production by increasing production resources, production capacity and improving the
distribution mechanisms. Though the company has struggled to keep up with the quality demands,
viticulture and viniculture studies have however enabled the company see remarkable developments
in increasing quality to the extent that the company has managed to collect various awards and gain
international recognition as high quality wine manufacturers. This plan is therefore set to promote
strategic effort that will steer the company's success further and will be based on information gained
from:
1. Industry research
2. Survey of international markets
3. Survey of market and consumer trends
4. Distributor roundtables
5. Discussions with major retailers
6. Future assessments of growth in wine markets
This plan also discusses the challenges facing HVWC and the corrective measures aimed at
addressing these challenges. The plan also directs and allocates administrative duties to the HVWC
board and will include:
1. An annual written review of the advancement, challenges faced and objectives already achieved;
2. Periodic evaluations from committees giving the

Wine War
CASE REPORT: Global Wine Wars: New World Challenges Old
(Harvard Business School Case # 9–303–056) NMI
1. How did the French become the dominant competitors in the increasingly global wine industry for
centuries? What sources of competitive advantage were they able to develop to support their
exports? Where were they vulnerable?
French wine makers also face challenges that are not internal to the industry. For instance, France
lost market share in the United States due to informal boycotts in the wake of the Iraq war. The rise
of the euro against other currencies, such as the 30% increase relative to the dollar in the last few
years, has put French wines at a comparative cost disadvantage. But consensus among experts is that
the ... Show more content on Helpwriting.net ...
However, it quickly became apparent that the newcomers pose a serious threat to the traditional
winemakers. The French were especially hurt when they began to lose their global market share as
well as the coveted U.K. market to the Australians.
Allows analysis of the way in which newcomers can change the rules of competitive engagement in
a global industry. How incumbents can respond, especially when constrained by regulation,
tradition, embedded values, and a different set of capabilities than those demanded by the emerging
market by changing consumer tastes and market structures.
The case contrasts the tradition–bound Old World wine industry with the market–oriented New
World producers, the battle for the US market, the most desirable export target in 2009 due to its
large, fast–growing, high priced market segments.
REINVENTING THE MARKETING MODEL: New World producers revolutionized the packaging
and marketing aspects of wine making. Americans and Australians greatly impacted wine packaging
by replacing the Old World standard liter bottle with a half–gallon flagon in the U.S. and the
innovative "wine–in–a–box" package in Australia. Australians have been praised for this idea
because boxed wine not only saves on shipping costs but it
has made storage easier for consumers. Australians have also begun to use screw on caps rather than
the traditional corks on premium wines; this is to prevent spoiling due to deficient corks. On the

Marketing
New World vs. Old World Wine
A great debate raging in the wine world today is over the differences between wine coming from the
New World versus the Old World. Much of this arguing quickly becomes obscured by emotions.
Wine has the ability to create great passions. This in some way is proof of its greatness and
importance to humankind. However, beyond the prejudices and rancor this discussion has some
valid points of contention.
Old world wines come from the "classic wine making regions" in Europe. New world wines come
from everywhere else. The Old World can generally date their origins of wine production back to the
Roman Empire and beyond. Spans of time like this simply cannot be replicated by any other means.
Throughout this 2000+ ... Show more content on Helpwriting.net ...
Whatever the methods used many New World have managed to come up with a lot of good wine. In
the case of Latin America and Australia and South Africa this wine is often a very good value. The
Southern Hemisphere growers are helped by a climate that changes little so there are fewer vintage
variations. However, many wine drinkers are of the opinion that this homogeneity has come at the
cost of less interesting wine. Much of the wine from these regions does not bear a recognizable
thumbprint of the soil from which it sprung. A good deal of the pleasure of wine drinking is
developing the ability to recognize and grow fond of a certain region. By removing this element of
the earth much of the interest in wine is reduced.
While generally deploring much of the wine of the New World, the Old World is being forced to
take notice. Australian wine has displaced French wine as the top import to the British Isles. Many
traditional makers are employing some new techniques to insure a better, more marketable product.
This is generally not a bad thing as France for instance has always produced lakes of cheap swill.
Lacking competition many growers and producers were content to maintain the status quo.
As long as the Old World does not lose its intrinsic personality and deep relationship with the soil
these trends can only benefit the consumer.

Australian Wine Industry
1 Synopsis
Today as the world around us continues to age more and more people have an interest for premium
wines. As Australia's economy continues to boom some industries have taken a major hit over the
last decade including Australia's wine industry even though it continues to produce some of the best
wines in the world. The report will look into the history of Australian wine and look at where things
have gone wrong. The reports key findings will reveal a relatively unknown winery in the town of
Orange, called Belgravia that produces some outstanding wines. The results that have been
presented have been researched on various Internet resources, newspaper articles and journals. The
writer has also contributed to the report with his ... Show more content on Helpwriting.net ...
A Short history of wine)
By the middle half of the 1800's Phylloxera, a disease in the vines destroyed over two thirds of the
vineyards in Europe and by 1875 Australia fell victim (John Beeston. (2008). History of Wine in
Australia) However with the strict regulations implemented in Australia, South Australia's Barossa
Valley remained free from Phylloxera and today has some of the oldest vines remaining in the
world.
By the 1980's domestic wine consumption per capita had reached 17.3 litres, as the 'bag in a box' an
Australian innovation had been perfected. (John Beeston. (2008). History of Wine in Australia)
In the Table Fig.1 below you can see and overview of the Australian wine sector in 2007, it shows
Australia's biggest export markets as well as the most produced varietals in the country the top being
Chardonnay. In the last twenty years the Australian industry however has suffered and Bob Oatley
former owner of Rosemount got out at the right time and made a fortune. It was only in the 1980's
that governments sponsored growers to pull out their vines to overcome the glut of wine grapes.
With low grape prices in the last seven years there has been debate for yet another sponsored vine
pull. (Nance Haxton (2006) "Grape Glut") Still today wineries continue to sell clean skins to try and
combat their poor sales at basically a

Global Wine War Case 2009
Global Wine War 2009 : New World versus Old
How were the French able to dominate the worldwide wine trade for centuries ? What sources of
competitive advantage did they develop to support their exports ?
France and the Mediterranean region is closely tied to the Wine History. It has started since the
Roman Empire, and has been fully integrated to the European culture with the Christian era :
Monasteries planted vines and built wineries. The nobility started also planting vineyards as a mark
of prestige. In this early market, France has been dominant thanks to key advantages :
1. Factors Conditions : First, their geographic and climatic features played significant role. As
France is in the middle of Europe culture with suitable ... Show more content on Helpwriting.net ...
Taking these markets under their umbrella would lend credence and value to Chilean and
Argentinean wines and also open doors to penetrate the growing South American wine market
which is not nearly as saturated as other markets. Trading industry know how for access to cheap
land and labor is becoming more and more of a necessity with the growth of globalization. Taking
advantage of established new world innovations would also be seen as an easy way to increase
productivity of small lots.
The relatively small lot size which divides the old world into many distinct regions is a crippling
handicap. If the smaller wine lots were able to coalesce into cooperatives, they would be able to
market more efficiently due to increased resources. Also, despite the originality of the Old World
wines, perhaps a break with traditional methods could increase the marketability with the fresh
generation Y market.
Focusing these revamped marketing efforts in the Asian market with a keen eye towards ensuring
the "distance" problems are resolved as they arise would also give an edge to the old world.
By attempting to pull out of the "red ocean strategy" and moving more towards the "blue ocean
strategy" the old world could feasibly remove many of the aspects of competition that are harming it
currently. Besides the Far Eastern market, there are possibilities in Canada (who shares many old
world ties), the Middle

Essay on Industry Analysis Report the Australian Wine...
INDUSTRY ANALYSIS REPORT THE AUSTRALIAN WINE INDUSTRY 'The Boutique
Producer' by 4 students (anonymous) Executive Summary This report provides an overview of the
Australian Wine Industry using Porter's Five Forces industry analysis framework and seeks to
provide recommendations based on the impact of the forces for a start up boutique producer.
Through the use of Porters framework and the application of economic theory, the report will
provide detailed insight into the drivers of each force and the pressures that these forces put on the
industry. These insights will then be used to determine the competitiveness of the industry and
formulate recommendations for a start up boutique producer. Methodology ... Show more content on
Helpwriting.net ...
Cellar Doors. Agricultural Activities – Land Land is a crucial input to a start up boutique winery,
and as previously discussed can also provide a significant barrier to entry. From the supplier
perspective, the bargaining power of the purchaser is highly dependant on the present market rates
as well as current government restrictions on the use of land and the subsequent availability of
licenses . 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. General Agricultural Activities Agricultural equipment to support
vineyard activities is supplied by a number of monopolistic suppliers. These suppliers compete
across various agricultural sectors and as such stock specific, yet substitutable products that allow
the purchaser some level of freedom in choice of supplier. This condition subsequently increases the
ease of substitution (Porter, 1980). Vines Due to the potential destruction of

The Price Point Of Wine
Executive Summary
The report will analyse and expose the various factors that contribute to determine the price point of
wine factors including the labour cost to grow grapes and produce wine, the size and reputation of
the vineyard and the exclusivity and scarcity of the wine. Studies have shown that the global wine
market is divided into four quality segments or categories known as basic premium, popular
premium, super premium and ultra premium. Input costs for single vineyards have been divided into
five categories known as direct, labour, mechanisation, and maintenance and general costs. Hedonic
pricing and statistical analysis review qualities of wine that induce to price differentiation Studies
have shown that different regions ... Show more content on Helpwriting.net ...
2. Wine categorisation and marketing decisions
As Perrin & Lockshin (2001) and Blok (2007) state, input costs must be related to the retail segment
prices or price points that are given to wines. According to studies taken by Ernst & Young
Consulting in 1999, global wine market is divided into four quality segments or categories (Perrin &
Locksin, 2001). These categories are known as basic premium, popular premium, super premium
and ultra premium. When the winemaker acknowledge the categories of their various wines they
will know which are viable to produce in relation the retail price point that has been given.
Studies done in Australia during 2001 by the wine journal industry emerged with a very similar
quality segment system which is divided in four categories as well; Commercial wines, Semi–
premium wines, Premium wines and ultra–premium wines. Various winemakers have stated that
there is only a hedonic difference between the last two categories (Blok, 2007). Retail distribution
channels will therefore vary between wine categories as the winery management determines which
channel to target. Depending on quality and quantity the winery could select to distribute for
wholesalers, retailers, cellar doors, direct consumers or a combination of these (Heijbroek, 2003;
SCSD, 2010).
Marketing, advertising and distribution are considered overhead costs as they are not part of the
production process. Marketing

Australian Wine Industry Report
–––––––––––––––––––––––––––––––––––––––––––––––––
––––––––––––––––––––––––––––––––––––––––––––––––– Global and International Business
Contexts Australian Wine Industry Report Word court: 2690 TABLE OF CONTENTS Chapters 1.
Introduction 1.1 Company background and brand concept 1.2 Importance of Diversity and cultural
different between European & Australia 1.3 Develop a model and factors of buying behavior
between European & Australia 2. Porter's National Diamond model 2.1 Factor Conditions 2.2 Home
Demand Conditions 2.3 Related and Supporting Industries 2.4 Firm Strategy, Structure, and Rivalry
3. Strategic evaluation between European & Australia 3.1. Measurable 3.2. Accessible 3.3.
Substantial 3.4. Actionable ... Show more content on Helpwriting.net ...
He points out that, all around the world's organizations will have to deal with managing diversity
globalization not just in their countries. America's workforce has highly concern over how
cooperation can best manage their human resources such as motivation, training in increasing
diversity environment. Therefore, this paper is direct toward what is the different between equal
opportunities and managing Diversity, what is globalization's consequence for industries, HRM in
international's values and organization behavior. Besides, it reflects that how it can link to change
between European and australia. This paper not only direct toward how an organization can expand
its international business opportunity and globalization, but also get the analysis how an company
create new environment to richer solute their problem which with the advent of globalization
between European and Australia. 1.1 Company background and brand concept Château Lafite, On 8
August 1868, which was under public sale as part of the Ignace–Joseph Vanlerberghe succession
Château Lafite Rothschild for the preceding period. Just 3 months after the purchase, Baron James
passed away, and Lafite became the joint property of his three sons: Alphonse, Gustave and
Edmond. The estate then included 74 hectares of vineyards Nowadays, the company believes that
Australia is the important

The Rules And Regulations On The Areas Of Global Wine...
This report is analysis of the rules and regulations in the areas of global wine industry. With the
emergence of "New World" players in the global wine industry has been lost a lot of "Old World"
market share (). Initially, France, Italy simply laughed processing technology of the new player, such
as U.S and Australia. However, it soon became apparent that the new traditional wine production
poses a serious threat to those traditional winemakers. The French in particular were hurt when they
began to lose its coveted in the world market share as British markets to Australian. The main issues
discussed in this report are what are similarities and differences in the ways between the New World
and Old World wine producer.
Introduction
Only the strong can survive and develop, which is common to all aspects of the world. In the wine
industry, "New World" challenges "Old World" and gradually takes the better position in the market
competition. The report recognizes the reasons given case specific analysis pleading wine. As a
result, the qualitative analysis of the regions wine will be the main methods of reasoning of this
paper. The truth is disclosed in the "New World" how comparative to the "Old World" wine industry.
The Base–viewed between "Old World" and "New World" wines
There are nearly 70 countries producing wines all around the world. These producers divide into
"Old Wine" (e.g. France, Italy) and "New Wine" (e.g. U.S, Australia) (). The former has more than
1000

Global Wine: New vs. Old World
Global Wining: New vs. Old World
An Analysis of New and Old World Wine Countries
– 1 –
Outline
I. Executive Summary ...................................................................................................................... 3
II. Background................................................................................................................................. 4
III. Industry Analysis: Australia....................................................................................................5–7
A. Challenges ...................................................................................................................7–8
1. Public perceptions
2. Fragmentation of wineries
3. Overproduction
4. Climate
5. ... Show more content on Helpwriting.net ...
For many years France was paving the way and producing high quality wine and reaping success in
a growing market, but just like any industry, a shift in consumer demand changed the outlook on
France's future success in the wine industry, but proved to be an opportunity for new comers United
States and Australia.
The following analysis provides alternatives and recommendations for New and Old world
producers to gain a larger share of the wine industry. New World wine producers have a handle on
the large growing segment of younger wine drinkers, but have yet to tap into the older, quality
conscious wine connoisseurs.
Wine growers need to invest heavily in market research and customize their marketing and labeling
to that particular customer preference.
For Old World wine producers such as France, it will be a little more difficult in implementing
changes as it is nearly incapable due to strict rules and regulations. Not only is government's
involvement a hindrance, the cultural and traditional influence is a blockade in applying technology
to production. As such, it will be difficult for Old World countries to compete, but there are some
changes that France wine producers can make while staying within the restrictions. These include
promoting their traditions through advertising and simplifying

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