Chapter 3 - Types of Business Engaged in the Production of Wine

Question 1

Route to market

Answer 1

how a bottle of wine gets from producer to consumer

Question 2

Estate

Answer 2

Produces wine from its own vineyards

Question 3

Advantages to estate model

Answer 3

1. can choose the style of wine and ensure quality at every stage
2. all the profit from the production of wine belongs to the estate
3. marketing benefits — selling the story

Question 4

Disadvantages to estate production

Answer 4

1. Cost of managing the vineyard and equipping and running the winery
2. Difficult vintages may produce small amounts of wine

Question 5

Growers

Answer 5

Grow grapes and then sell to winemakers or merchants

Question 6

What are the advantages to the grower model?

Answer 6

1. generates better cash flow

2. can focus all effort on producing best possible grapes

Question 7

What are the disadvantages for growers?

Answer 7

1. effects of vintage variation
2. fluctuations in supply/demand
   (both affect price offered for grapes)