Chapter 3

Question 1

Advantages and disadvantages of estate production

Answer 1

Advantages:
- retain control
- choose style made
-ensure QA and QC
- profit belongs to estate

Disadvantages:
- high capital costs
- small estate producers risk large crop losses due to vintage variation which can impact cash flow
-small producers can’t leverage economies of scale
- succession laws

Question 2

Merchants and grower merchants

Answer 2

Merchant: someone who buys immature wine, matured it and sells under their name

Grower merchant: someone who owns vineyards and produces wine from those vineyards, alongside wine made from purchased grapes, juice or wine

Question 3

Co-ops and custom crush

Answer 3

Co-op: a company that produces and sells wine made from grapes grown by its members

Custom crush: a variant of a co-op found mostly in North America and California. Growers don’t own the facility but pay to use it

Virtual wineries: Kim Crawford, meiomi both started this way. Winemakers who do not own vineyard land or winemaking facilities