Factors that Affect the Price of WIne

Question 1

what are the two ways production costs can be divided?

Answer 1

grape growing and wine making

Question 2

what is typically the largest production cost in grape growing?

Answer 2

labor

Question 3

what are the most obvious costs in winemaking?

Answer 3

equipping, and maintaining the winery with necessary equipment.

Question 4

what costs are found in packaging?

Answer 4

bottle labels, capsules, closures and cartons

Question 5

what ultimately determines the price of wine?

Answer 5

how much the destination market is ready to pay for it.

Question 6

what are three main types of wine producer?

Answer 6

1. co-operatives
2. merchants
3. estates

Question 7

what is a co-operative wine producer?

Answer 7

wine businesses owned by their members, typically grape growers. The grape grower brings their grapes to a winery that is owned by the cooperative and run by a wine making team that is employed by the co-operative

Question 8

where are co-operatives most common?

Answer 8

Europe - not seen a lot in the rest of the world

Question 9

what are merchants?

Answer 9

they buy grapes, juice or wine from other growers or co-operatives . sometimes referred by their French name “negociant”

Question 10

where are merchants most common?

Answer 10

outside of Europe

Question 11

what are estates?

Answer 11

they only make wine from grapes that they grow. mostly producing on a small scale. often referred to as their French name ‘domaine”