3.6 - 3.8: Custom Crush Facilities, Virtual Winemakers/Wineries, and Conglomerates

Question 1

What types of wine do virtual winemakers/wineries make?

Answer 1

• vary widely
• individuals who produce small batches of super-premium, high-quality wines
• organizations creating a brand of wine, sourcing fruit or juice from a large number of sources (a ‘virtual winery’)

Question 2

What are the main benefits of a conglomerate?

Answer 2

• own several wine brands, covers full range of price points, wide variety of outlets and potential customers
• can afford to set up regional offices in markets that are important to them to market and sell their wines in that country or region
• size and influence gives them significant negotiating power

Question 3

How do conglomerates often work?

Answer 3

• own many smaller businesses across the various stages of the supply chain
• from production (e.g. estate wineries, merchants)
• to distribution (e.g. distributors)

Question 4

Give an example of a prestigious wine brand that has been bought by companies specialising in luxury goods.

Answer 4

• Moët Hennessy-Louis Vuitton

- brands include Champagne houses Moët & Chandon, Veuve Clicquot and Krug and Cloudy Bay in New Zealand