6 Flashcards
List vehicles used to reach the end consumer w/in a free market-
-hospitality?
Bars
Specialist wine bar
General Bar
Restaurants
Non-destination restaurants
Casual dining
Fine dining
Categories of bars include?
Specialist wine bar
General Bar
Reach the end consumer in hospitality
Bar- specialist wine bar define?
- usually independently owned, individual or small chain
- many ways similar to specialist wine retailer/ could have on/off prem
- larger ones might have own label wine
Reach the end consumer in hospitality
-Bar- Specialist wine bar- describe staff and customers?
- aim for High involvement customer
- tend to have knowledgeable staff, hand sell to customer
- Seek out smaller producers
Reach the end consumer in hospitality
-Bar Specialist wine bar- describe wine offerings?
- offer food pairing artisan cheese/ charcuterie
- regularly changing selection of wine
- generally, not offer big name brands
Reach the end consumer in hospitality
Bar- general bar define?
- less of a wine focus w/ wine just being one limited item offered
- usually produced by major companies f/ well known regions/ grape
- may be same as retail outlets Mark up considerably
Reach the end consumer in hospitality
Bar- general bar- describe wine offerings?
- inexpensive or mid-priced chosen to be drunk by wide range of people
- with or w/o food
- some producers make brand labels for this sector to avoid direct competition
- Some bars have themes: Sport bar, Irish bar, British pubs which skew the range of drinks offered – wine less prominence
Categories of restaurants include?
Non-destination restaurants
Casual dining
Fine dining
Reach the end consumer in hospitality
Restaurants- Non-destination define?
- quick meal after work
- many are part of chains
- in general wine offered appeal to wide range of consumers
- likely to be inexpensive/ mid-priced
Reach the end consumer in hospitality
Restaurants- Non-destination- wine offerings available?
- tend to be well knowns regions/ grapes, major brands
- many have a country-based theme – Italian, Spanish, Lebanese in which the wines would tend to be heavily drawn from the relevant country
Reach the end consumer in hospitality
Restaurants- Casual dining define?
- can be used in variety of situation from quick meal to longer
- tendto be independently owned, individual bus or small chain
- offers vary high quality food/ wine w/o formality
Reach the end consumer in hospitality
Restaurants- Casual dining- describe staff and customers?
- staff trained sufficiently to advise customers to suit taste, $, or food
- Mid-priced to premium brands
Reach the end consumer in hospitality
Restaurants- Casual dining – wine offerings?
- wine chosen with food and wine pairing in mind
- wine offering is a mixture of better-known regions & varieties and less known ones
- in wine producing countries, range often dominated by local wines
- if restaurant is themed - wine dominated from that country
Reach the end consumer in hospitality
Restaurants- Fine dining define?
-destination restaurants- the experience & the meal are the reasons
-food /wine pairing particularly important
Reach the end consumer in hospitality
Restaurants- Fine dining -define staff and customer?
-trained sommelier & highly skilled staff on hand for recommendations
-Restaurants often use brokers to seek out hard to fine wines on their feature list
Reach the end consumer in hospitality
Restaurants- Fine dining -describe wine & food offerings?
-offer tasting menus which offer food and wine pairing
- wines of highest quality & are often super premium, limited quantity
- great source of price for producer to have wine listed there
List the legal structures that can limit supply chain options that control the sale of wine to the end consumer
Monopoly Markets
American ‘three tier system’
Monopoly Market defined?
-Scandinavian countries & in Canada
-gov run _____ for the retail sale of alcoholic drinks
-bars and restaurants can buy from ____ or from specialist independent
Monopoly Market – what is the government’s aim for using this system?
-aim is limit alcohol consumption achieve through high pricing
- remove free market to compete
- levy high levels of tax on alcoholic drinks
- stores do not promote individual products or producers but simply advise, removes any incentive for promotions/ price reduction
- much harder to enter the retail sector, considerable bureaucracy
Monopoly Market from a producer’s perspective?
Sweden
- owned chain Systemolaget and some specialist independent distributors, licensed under special conditions
- producer must 1st apply to be approved
- producer then submits samples to be blind tasted for quality
- selected, then tasted again & chemically analyzed
- process can take 7 to 8 months
- once accepted, potential to sell in large volumes
Monopoly Market from a producer’s perspective?
Canada
Ontario -retails sales are controlled by the Liquor Control Board LCBO
-either through own stores or approved agencies (number or local producers)
Alberta- now has a private market for wholesale distro & retail
-Alberta Gaming and Liquor Commission
US three tier systems listed?
Producer/ importer
Distributor (including wholesaler, brokers)
Off Premises Retailers (spmkts, wine specialist) /On prem (bars & rest)
USA’s three-tiered system came about how?
- Between 1919 and 1933 Volstead Act Prohibition
- ____ was introduced in 1933 Repeal
- aim of preventing pre-prohibition ‘saloon’ gambling, prostitution, crime, drunkenness
USA’s three-tiered system- what is the aim?
many saloons were tied to houses required to buy all products sold by a brewer or distiller
___ prevents direct sales from producer to retailer & to avoid producer monopolies & increase prices
US three tier system defined?
- Laws limit or prohibit cross ownership between upper two tiers
- A producer may also be an importer but cannot be a wholesaler
- a producer cannot by-pass a wholesaler and sell direct to a retailer
- a wholesaler can import but not produce
US three tier system- describe State controls?
- Wineries (and breweries and microdistilleries) from in the state and from outside (in some states) are allowed to sell directly to consumers w/ conditions
- vestiges of the repeal of Prohibition in 1933 each state controls alcohol sales
- widely different approach between states
- offers options states remained dry, or establish state monopolies
US three-tiered system distributors
-specialize in logistical efficiency & largest serve huge areas of the country
-trained sales force & marketing materials
-provide producers w/ exposure
US three-tiered system- challenges of distributors?
- challenge is market consolidation in # (reduction by 2/3s) while # of producers entering increases
- small producers get lost in large portfolio & lose control over marketing and business to business selling of product
- small producer seek out specialist ___ better equipped to sell low vol, boutique brands but ___ have less state coverage
US three-tiered system- Conglomerates
Have become bigger in recent years as small producers are bought up
- ___ provide an attractive array of products for a large distributor
- distributor only have to deal with one large co to gain a range of desirable brands that need limited hand – selling
- multiple retailers can provide a range of product to customer while dealing with one or two large distributors
US Three-tiered system – direct to consumer
- Both shipping to consumer and cellar door sales
- gradually state restrictions are being loosened
- popular option for wineries w/out the volume to justify participation int the 3-tiered system
- cost of labor in advertising, shopping and burden of seeking to comply w/ other state’s regulatory framework
