Examples Chapter 4 Flashcards
Which markets most often use Joint Venture and why?
Price sensitive markets eg. UK
gives the parties greater control over those different stages and potentially greater profitability, as costs are shared and intermediary costs avoided
Examples of Joint ventures of distributor and producers?
Mentzendorff (UK) distributor
major shareholders are Champagne Bollinger and the Fladgate Partnership (Port)
Examples of Joint Ventures of distributors and producers resulting in new lines and brands?
Buckingham Schenk (UK) distribibutor and winemakers Hervé and Diane Joyaux Fabre created the Argentinian wine brand Viñalba
Examples of Merger and Acquisition
Conviviality with Matthew Clark / Bibendum PLB in the UK (distributors)
2018 USA private equity firm Carlyle Group bought Accolade Wines during trade war between the USA and China
tariffs were placed on USA wines entering China, whereas Australian wines (which make up a significant part of the Accolade brand portfolio) benefitted from a free trade agreement.
Example of failed Merger and Acquisition
2016 Convivality purchased Bibendum PLB (another large distributor+retailer company)
2018 new company in serious trouble and various parts sold to C & C Group and Bestway
Broker’s fees?
smaller fees than distributors (usually 2% of the contract price, but it can range from 1 to 5% in different parts of the world)
Example of broker’s?
Bordeaux: courtiers
legal status, intermediaries between merchants and chateaux
Cellar door sales: example where its important for tourists from nearby countries.
Alsace visited by Bel, Lux, Ger tourists
Example of cellar door sales in nearby cities:
Sonoma County or Napa Valley
isolated Columbia Valley in Washington State, USA opened cellar doors in Seattle, over 240 kilometres away
Wine region and individual winery who are doing events for ‘destination’ effect.
Lodi AVA in California
Denbies Wine Estate in the UK
Wine producing countries where wine clubs are more important
USA and Australia
Example of wine available only through Wine Club?
Screaming Eagle in Napa Valley
