Conglomerates

Question 1

What are conglomerates?

Answer 1

-large companies

Question 2

What is the largest company in the wine industry?

Answer 2

-E&J Gallo
-Gallo Family vys, Barefoot, Carlo Rossi

Question 3

What do conglomerates do?

Answer 3

-own many smaller businesses across various stages of supply chain
-from production (eg estate wineries, merchants) to distribution (eg distributers)
-can also afford to set up regional offices in markets that are important to market and sell their wines in that country or region

Question 4

What are the advantages of conglomerates?

Answer 4

-greater control at all stages of route to market
-reduces need to pay intermediaries
-size and influence= signif negotiation power- strike hard bargains when buying grapes, juice, wine from suppliers
-and when selling to retailers

Question 5

What is there an increasing trend of with conglomerates?

Answer 5

-major companies outside wine industry buying into sector
-number of prestieous wine brands been bought by companies specialising in luxury goods
-eg Moet Hennessy Louis- Vuitton own Moet & Chandon, Krug, Cloudy Bay
-insurance companies also- eg AXA own top estates in bdx and burg, and also Quinta do Noval