Merchants

Question 1

What were merchants traditional role?

Answer 1

-buy immature wine, mature and sell it under merchants name
-many cases-blend wines of diff producers prior to bottling

Question 2

What is the risk for merchants?

Answer 2

-little control over grape growing/wm process
-so now, many produce own wine from grapes/juice and provide technical support to their suppliers to ensure grapes/wine they buy are of required quality

Question 3

What is the key advantage for merchants (and give an example)?

Answer 3

-no expense of buying and managing of vys
-particularly beneficial in Burg and Champagne where vy land seldom sold and price of land is v high
- in burg- led to rise of ‘micro-negociants’ who specialise in small production wines, usually from individual vys that that achieve super prem prices

Question 4

What is another advantage for merchants?

Answer 4

-buying from diff growers/producers= protection and flexibility in bad vintages

Question 5

What are merchants forced to do in bad vintages?

Answer 5

-turn to spot market to source grapes and pay higher prices

Question 6

How can merchants protect themselves from price fluctuations (give an example)?

Answer 6

-long term contracts with their suppliers and provide technical support and advice
-regions like bug and napa- price rise is signif= much more expensive for merchants to purchase grapes

Question 7

What can merchants who produce large vols of wine do?

Answer 7

-supply private label wines for supermarkets, deep discounters, restaurants etc

Question 8

Merchants operate differently in different regions. Give examlpes

Answer 8

-negociants in burg= more involved in production than bdx
-bdx- more with wine that has already been made