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WSET D2 Wine Business > 6 > Flashcards

6 Flashcards

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1
Q

List vehicles used to reach the end consumer w/in a free market-

-hospitality?

A

Bars

Specialist wine bar

General Bar

Restaurants

Non-destination restaurants

Casual dining

Fine dining

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2
Q

Categories of bars include?

A

Specialist wine bar

General Bar

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3
Q

Reach the end consumer in hospitality

Bar- specialist wine bar define?

A
  • 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
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4
Q

Reach the end consumer in hospitality

-Bar- Specialist wine bar- describe staff and customers?

A
  • aim for High involvement customer
  • tend to have knowledgeable staff, hand sell to customer
  • Seek out smaller producers
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5
Q

Reach the end consumer in hospitality

-Bar Specialist wine bar- describe wine offerings?

A
  • offer food pairing artisan cheese/ charcuterie
  • regularly changing selection of wine
  • generally, not offer big name brands
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6
Q

Reach the end consumer in hospitality

Bar- general bar define?

A
  • 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
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7
Q

Reach the end consumer in hospitality

Bar- general bar- describe wine offerings?

A
  • 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
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8
Q

Categories of restaurants include?

A

Non-destination restaurants

Casual dining

Fine dining

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9
Q

Reach the end consumer in hospitality

Restaurants- Non-destination define?

A
  • 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
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10
Q

Reach the end consumer in hospitality

Restaurants- Non-destination- wine offerings available?

A
  • 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
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11
Q

Reach the end consumer in hospitality

Restaurants- Casual dining define?

A
  • 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
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12
Q

Reach the end consumer in hospitality

Restaurants- Casual dining- describe staff and customers?

A
  • staff trained sufficiently to advise customers to suit taste, $, or food
  • Mid-priced to premium brands
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13
Q

Reach the end consumer in hospitality

Restaurants- Casual dining – wine offerings?

A
  • 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
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14
Q

Reach the end consumer in hospitality

Restaurants- Fine dining define?

A

-destination restaurants- the experience & the meal are the reasons

-food /wine pairing particularly important

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15
Q

Reach the end consumer in hospitality

Restaurants- Fine dining -define staff and customer?

A

-trained sommelier & highly skilled staff on hand for recommendations

-Restaurants often use brokers to seek out hard to fine wines on their feature list

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16
Q

Reach the end consumer in hospitality

Restaurants- Fine dining -describe wine & food offerings?

A

-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
17
Q

List the legal structures that can limit supply chain options that control the sale of wine to the end consumer

A

Monopoly Markets

American ‘three tier system’

18
Q

Monopoly Market defined?

A

-Scandinavian countries & in Canada

-gov run _____ for the retail sale of alcoholic drinks

-bars and restaurants can buy from ____ or from specialist independent

19
Q

Monopoly Market – what is the government’s aim for using this system?

A

-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
20
Q

Monopoly Market from a producer’s perspective?

Sweden

A
  • 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
21
Q

Monopoly Market from a producer’s perspective?

Canada

A

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

22
Q

US three tier systems listed?

A

Producer/ importer

Distributor (including wholesaler, brokers)

Off Premises Retailers (spmkts, wine specialist) /On prem (bars & rest)

23
Q

USA’s three-tiered system came about how?

A
  • Between 1919 and 1933 Volstead Act Prohibition
  • ____ was introduced in 1933 Repeal
  • aim of preventing pre-prohibition ‘saloon’ gambling, prostitution, crime, drunkenness
24
Q

USA’s three-tiered system- what is the aim?

A

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

25
Q

US three tier system defined?

A
  • 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
26
Q

US three tier system- describe State controls?

A
  • 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
27
Q

US three-tiered system distributors

A

-specialize in logistical efficiency & largest serve huge areas of the country

-trained sales force & marketing materials

-provide producers w/ exposure

28
Q

US three-tiered system- challenges of distributors?

A
  • 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
29
Q

US three-tiered system- Conglomerates

A

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
30
Q

US Three-tiered system – direct to consumer

A
  • 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

WSET D2 Wine Business (12 decks)

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