Chapter 1.2.3. D2 Flashcards
What are the factors that influence the demand for wine?
Factors influencing demand for wine include:
* Social & Cultural Factors
* Economic Factors
* Legislative & Political Factors
* Branding & Market Trends
Each of these factors plays a significant role in shaping consumer preferences and purchasing behaviors.
How do social and cultural factors affect wine demand?
Social and cultural factors shape wine demand through consumer behavior, traditions, and lifestyle trends.
Changing consumption habits, demographics, and health concerns are key aspects.
What has been the trend in global wine consumption since the early 2000s?
Global wine consumption grew in the early 2000s but slowed after the 2008 financial crisis.
Sparkling wine and rosé consumption increased during this period.
Which generations are drinking less alcohol overall?
Younger generations, particularly Millennials and Gen Z, are drinking less alcohol overall.
This trend is influenced by health-conscious behaviors.
What economic factor can lead consumers to switch to cheaper wines?
During economic downturns, consumers switch to cheaper wines or other alcoholic drinks.
This reflects changes in consumer spending patterns based on financial stability.
How do currency fluctuations impact wine prices?
Currency fluctuations affect wine prices by making imported wine more expensive when a country’s currency weakens.
A strong local currency can make imported wine cheaper.
What role do government policies play in wine demand?
Government policies impact wine demand through regulations, taxation, and trade agreements.
These include age restrictions, advertising bans, and drink-driving laws.
What is the impact of high excise taxes on wine?
High excise taxes reduce affordability and can decrease wine demand.
For example, Ireland has a high duty on sparkling wine.
How do strong brands influence wine prices?
Strong brands command higher prices and boost demand through wine reviews and awards.
Brands like Moët & Chandon and Château Margaux are examples.
What are the production factors that influence the supply of wine?
Production factors include:
* Weather & Climate Change
* Vineyard Area & Government Regulations
* Human Factors
These factors affect the quantity and quality of wine produced.
What is the effect of climate change on wine production?
Climate change affects traditional wine regions by impacting factors like temperature and acidity levels.
For example, warmer temperatures can impact Bordeaux’s acidity.
What are Protected Designations of Origin (PDO)?
PDOs are strict regulations on grape varieties, yields, and winemaking to protect wine origin.
Examples include Champagne and Barolo.
What challenges arise from over-supply in the wine market?
Over-supply leads to:
* Discounting & Brand Damage
* Wine Lake & Vine Pull Schemes
This can hurt the prestige of brands and lead to unsold stock.
What happens during under-supply in the wine market?
Under-supply causes prices to rise, and consumers may switch to alternatives.
Luxury wines can increase in price significantly.
What are the main costs associated with grape growing?
Grape growing costs include:
* Land Costs
* Vineyard Establishment Costs
* Vineyard Management Costs
These costs vary based on region and management style.
What factors influence land costs in wine production?
Land costs are influenced by location and prestige.
For example, Napa Valley land is significantly more expensive than Central Valley.
What are some winemaking costs?
Winemaking costs include:
* Winery Capital Costs
* Labor & Production Costs
* Maturation Costs
* Packaging Costs
Each of these contributes to the final price of the wine.
What types of transportation and logistics costs are involved in the wine supply chain?
Transportation and logistics costs include:
* Shipping Methods
* Transport Types
* Storage & Warehousing
These aspects affect the overall cost and quality of wine distribution.
What impact do import tariffs have on wine prices?
Import tariffs increase wine costs, making some wines pricier in certain markets.
For instance, EU tariffs on Australian wines can raise their prices.
How do retailer markups vary in wine sales?
Retailer markups vary significantly, with supermarkets marking up around 10% and restaurants marking up 200–300%.
This reflects the different sales strategies and consumer expectations.
What are the types of wine businesses involved in production and sales?
Types of wine businesses include:
* Estates (Châteaux, Domaines)
* Growers
* Grower-Producers
* Merchants
* Grower-Merchants
* Cooperatives
Each type has unique approaches to sourcing and production.
What are the advantages of estate wineries?
Advantages of estate wineries include:
* Full control over vineyard and winemaking
* Ability to charge premium prices
* Strong branding potential
These factors contribute to higher quality assurance.
What challenges do grower-producers face?
Challenges for grower-producers include:
* High costs of farming and winemaking
* Limited production
These challenges can make scaling the business difficult.
What is the business model of cooperatives?
Cooperatives involve small growers pooling resources to produce wine under a collective brand.
This model helps reduce costs and provides consistent marketing.
