Estates

Question 1

What defines an estate producer?

Answer 1

-produces wine from it’s own vys (wholly owned or leased)

Question 2

What are the advantages of an estate producer?

Answer 2

-have control over whole process- growing grapes to producing and bottling wine
-all profit belongs to estate
-marketing benefit- ‘authenticity’ and ‘story’

Question 3

What are the disadvantages of an estate producer?

Answer 3

-cost of managing, equipping, and running winery and vy
-if difficult vintage= small vol of wine
- to still make profit, estate may need to sell wine at higher price- consumers may not be willing to pay
-even if they are, estate may not necessarily recover costs of producing that vintage
-larger estates more financially viable= economies of scale of production, admin, marketing.
-eg production- greater vols of wine made more cheaply, same equipment re used to produce diff wines