1.1 Influencing factors of the demand of wine

Question 1

Name the 4 main factors that affect the demand of a wine

Answer 1

selp

1. ) Social
2. ) economic
3. ) legeslative
4. ) politisch

Question 2

Name the main 4 SOCIAL factors that affect the price and demand of a wine:

Answer 2

CCRS

1. ) consumption habits
2. ) consumer preferences
3. ) reputation
4. ) spending patterns

Question 3

Social factors:

Name 4 factors for changes in consumption habits + 1 or more subitems (Unterpunkte)

Answer 3

yhll

1.) younger people
= less wine, old fashioned, less bars

2.) health concerns
= Loi Evin

3.) lifestyle changes
= more busy, less meals

4.) less cheap wine
= switch to other drinks

Question 4

Social factors / Consumption habits:

1. ) Which country overtook Italy and France related to the wine consumption?
2. ) When & why?

Answer 4

USA in 2011

Because of the food and drink globalisation

Question 5

Social factors / Consumption habits:

1. ) which country grew fast related to the consumption of wine?
2. ) When & why?

Answer 5

1. ) China in the last two decades

2. ) Growing middle class = wealth status

Question 6

Social factors / Changing Consumer preferences:

Name 3 type or style of wines that became more popular over the last decades:

Answer 6

1. ) Rosé
2. ) Prosecco

3.) Driere styles
= moving away from fortified wines

Question 7

Social factors / Changes in reputation:

Name 4 groups which have an impact on the reputation of a vineyard of Region!

Answer 7

PPIT

1. ) Peers
2. ) Publications
3. ) Influencers
4. ) Television, Movie

Question 8

Social factors / Changes in spending patterns:

What are price-sensitive markets?

Answer 8

Consumer are unwilling to pay more than the lowest price points !

Question 9

Social factors / Changes in spending patterns:

Name 2 price-sensitive markets!

Answer 9

1. ) UK

2. ) Germany

Question 10

Social factors / Changes in spending patterns:

1. ) Is the competition in price-sensitive markets higher?
2. ) If yes - what are the consequences for the producers?
3. ) which possibilities do the producers have?

Answer 10

1. ) High competitions
2. ) Unprofitable for producers
3. ) building up a brand loyalty

Question 11

Economic factors:

Name the main 3 economic factors that affect the price, supply & demand of a wine:

Answer 11

ecm

1. ) economic strength
2. ) currency fluctation
3. ) market changes

Question 12

Economic factors / Strength of the economy

Name 3 reasons why the sales of wine will DECREASE and name an example for that!

Answer 12

rdb

1. ) recession
2. ) disposable income
3. ) bad future expectations

E.g. financial crisis 2008
= less champagne; more prosecco

Question 13

Economic factors / Strength of the economy

Name reasons why the sales of wine will INCREASE and name an example for that!

Answer 13

1. ) Boom-Phase
2. ) More disposable income
3. ) Good future expectations

E.g. China = growing middle class = Bordeaux/Brugund

Question 14

Economic factors / Fluctuation in currency exchange

In which kind of markets does the fluctuation in currency most affect?

Answer 14

Price-sensitive markets like UK or Germany

Question 15

Name 2 options for a producer if a) the exporting country´s currency gains value & b) vice versa !

Answer 15

a) 1. keep price stable = Risk loosing Sales
2. decrease the price = loose profit

b) 1. keep price stable = boost sales = better value
2. increase price = more profit

Question 16

Name 3 consequences if the currency of a country looses value!

Answer 16

BYE

Higher costs for:

1. ) Barrels
2. ) Yeast
3. ) Equipement

Question 17

Legislative and political influences :

Name 5 of them & give 1-2 examples!

Answer 17

PITWD

1. ) Prohibiting or Limiting
   e. g. Age; Hours; TTS
2. ) International Trade
   e. g customs duties; EU; reduced tariff trade
3. ) Taxation
   e. g. taxes (VAT); duty

4.) Wine laws

5. ) Decisions by Government
   e. g. Loi Evin; Scottish Minimum pricing, BAC

Question 18

LPF / International Trade:

Which tax decrease the demand of alcohol in Ireland tremendously & why?

Answer 18

Tax on sparkling wine

= double of the still wine tax

Question 19

LPF / International Trade:

In which countries were trade restrictions imposed ?

To which consequences did it lead?

Answer 19

2010 - Argentinien
= limited imports (cork, yeast, barrels)
= restricts foreign ownership

US/China Trade war
= tariffs on wines

Question 20

LPF / International Trade:

What is an extreme form of a trade restriction?

Answer 20

Embargo (Russia)

Question 21

LPF / Wine laws:

Name 3 legal factors to increase the demand of wine!

Answer 21

1. ) PDI
2. ) PDO
3. ) GI

Question 22

LPF / Wine laws:

Give 3 reasons why the GI/PDO/PDI systems increase the demand of wine!

Answer 22

1. ) strong reputations
2. ) recognition
3. ) quality

Question 23

LPF / Wine laws:

Has the EU stricter laws on the PDO system than anywhere else ?

Answer 23

YES

Limiting grape varieties, production methods, maturation periods etc.