Chapter 1

Question 1

Consequences if undersupply for producers of large volume inexpensive varietally labeled wine

Answer 1

• customers upset
• price goes up
• give competitors leg up
• tight revenue stream already
• quality would go down
• get grapes from other places
• wide variety of choices, leave wine altogether

Question 2

Consequences of undersupply for producers of super premium single vineyard wine

Answer 2

• loss of revenue
• price goes up
• customers upset but not as upset
• inventory
• lose spot on shelf/BTG
• won’t stock library
• increased exclusivity (could affect allocations)
• membership
• burgundy crop loss
• oregon 2020/2021 wildfires

Question 3

Reasons for increase in area under vine in China from 2008-2016

Answer 3

Increase in table wine consumption

Question 4

What are reasons for decrease in area under vine in EU

Answer 4

-vine pull schemes
- eu restrictions on planting new vineyards
- conversion of land to other uses
- abandonment of rural areas (younger generation moving urban)

Question 5

Too producing countries by volume

Answer 5

Italy, France, Spain

Question 6

Production volume variation

Answer 6

• labor availability
• Mother Nature
• change in taste
• people drinking less in general
• older generation dying off
• vine pull schemes lower production overall

Question 7

weather hazards that affect yield across a vintage

Answer 7

Spring frost
Hail
Heatwaves
Fires

Question 8

Long term natural factors that cause undersupply

Answer 8

Drought (even this year after rain, still supposed to have small yield because of past droughts)
- Napa, South Africa, chile

Question 9

How does EU legislation that restricts use of irrigation control yield

Answer 9

La mancha
??

Question 10

How can a producer increase yield without increasing vineyard area?

Answer 10

Trellis systems
Canopy management
Narrowing rows (but still big enough for tractors)
Allowing more clusters per vine
Managing for pests/disease
Lees filtration
Blending out years where things happened (smoke taint)

Question 11

Wine consumption crashed

Answer 11

2008 (global recession)
Dips in 2013,2014
2020 huge spike in consumption which has now flattened off

Question 12

Why did international exports rise in US

Answer 12

Wine/food pairing interest
More $$ here because price to produce wine went up, cheaper price export
Wine consumption mainstream

Question 13

China consumption in past 10 years till now

Answer 13

Premium red wine
Larger (aspirational) middle class looking to work as luxury
Showing off wealth
Ultra premium market is declining bc of new laws limiting lavish gifts

Question 14

Germany consumption

Answer 14

Tetrapacks (alternative packaging, matches active lifestyle) compostable
Sparkling
Price sensitive (get fantastic wines very cheap)
Moving towards dryer style

Question 15

Consumption Trends in France and Italy

Answer 15

Reduction: because of health and benefits
Work day has changed— not as long of lunches
Decreasing population

Question 16

2020 trends

Answer 16

Tarrif war between us and China
South Africa legislature didn’t let them sell wine

Question 17

Decline in wine consumption

Answer 17

1. Younger people are drinking less wine
   Availability of other drinks GIN
   Old fashioned
   Spend less time socializing in bars
2. Health concerns
   increasing awareness of negative health effects of alcohol
   Government campaigns or policies
   Drunk driving law (Scotland)
3. Changes in lifestyle
   Less time for longer meals traditionally served with wine
   Daytime drinking often forbidden by employers
4. Reduced availability of cheap local wines
   Steps to reduce overproduction
   Switching to cheaper alcoholic drinks
5. Consumer preferences
   Decline in consumption of fortified wines
   Increase in consumption of sparkling wines (benefit from white claw)
6. Legislative and political
   Taxation and trade agreements (Scotland)
   Laws limiting or prohibiting consumption
   Government policies to reduce consumption
   Other laws relating to GIs (Bordeaux took a long time to get new varietals approved)

Question 18

What factors can cause an increase in wine consumption

Answer 18

Growth of wine culture
Wine media (scandal increase in African american)
Encouragement of wine consumption (French paradox, judgement of Paris)
Consumer interest in experimenting with new beverages
New products: wine cocktails, cans, tetra packs, orange wine

Question 19

All of the costs to establish a vineyard

Answer 19

Land
Labor costs
Installation of trellising / vines
Irrigation (water/tubing)
Soil consultant
Amending the soil
Buying vines/testing for disease
Permits/licensing
Lawyers
Established vineyard/versus new
Equipment for weather events fans/nets/fencing
Getting financing / loans/ interest costs
10,000,000 to establish a vineyard
Purchasing grapes in the meantime
Losing land to establish roads/access
Easements on the land

Question 20

Vineyard costs moving forward

Answer 20

Labor(pruning, planting, picking, pest management, cap management, hand harvest/machine harvest)
topography
Organic/biodynamic
Machinery / maintenance of machinery
Treatments / sulfurs sprays fuel
Crop insurance (federally subsidized)
Making sure you’re covered in event of
Capital and interest from loans
Broker to find grapes/buyers
Property tax
Worker safety/ fines
Access to weather data
Frost protection
bird scarers
Electricity

Question 21

Winery costs

Answer 21

Winemaking equipment (bottling wine prohibitively expensive)
Refrigeration
HVAC
Water
Cleaning supplies
Cost of building winery (designer architect land engineer)
Permits (capacity, tasting room)
Roads
Costs of being certified organic
Branding/PR
employees
Recruiting
Interns
Sugar, acid, yeast, fining/filtering agents, ML agent, grapes, bottles, labels, corks
Storage
Barrels

Question 22

Advantages/disadvantages of methods to transport bottles

Answer 22

Rail: slow, limited coverage
Air: cost fast
Sea: slow port closed
Road: strike cooling not as good