Price Factors & Wine Law Flashcards
What can production costs be divided into
Grape growing and wine making
what costs are involved in establishing a new vineyard
Land purchased, soil prepared, vines bought and planted, trellis built
what are some ongoing costs associated with an established vineyard and how can some of these be reduced. Where can producers not apply these economies
Labor in tending the vines year round
Employ a seasonal casual workforce
Use mechanization
Share machinery or labor with other wineries
Remote or steep vineyards cannot realize these economies
What are the major sources of cost in the winery. Give an example of how one area might be reduced
Purchasing and maintaining winery equipment - sharing a bottling plant would save money.
Storage of the wine during maturation requires building space and ties up inventory that cannot immediately be sold for profit.
What are the cost areas in packing - how might reductions be made
Bottles, labels, capsules & cartons need to be designed and purchased. Trabsportation costs can be reduced by moving in bulk and bottling the wine at the location - not always possible for a small outfit
what kind of wineries have no transportation cost
those that only sell at the winery
what 3 areas are involved in selling wine further afield than the winery
transportation, distribution and sales
apart from transportation, distribution and sales what are other sources of cost in selling a wine
Taxes, retail markup and market forces
what is a cooperative and why are they common in europe
a wine business owned collectively by it’s members, usually wine growers. The winery is owned by the coop and it is run by a team of winemakers employed by the coop. They are common in europe because many vineyards are so small it is uneconomical to produce their own wines. The winemaker is not in control of the grape quality
what is a merchant or negotiant and where are they most common
they buy grapes, juice or wine from growers or coops. The merchant, in theory, has more control over grape quality since he can reject poor grapes. They are most common outside of europe. Most wine growers have much larger holdings than in europe and the merchants like having a contractual supply agreement with only a small number of growers. Many large brand wines are made this way
what are estates or domaines
these are businesses that make wine only from the grapes that they grow themselves and as such they are likely to produce on a relatively small scale. As the winemaker has total control over the grape quality and production method these wines are typically the best. Can have issues in poor vintages as not as many blending options
In most countries what warning will almost certainly need to be displayed on the label
Contains sulphites
Why do nearly all wine labels display a GI
Because where the grapes are from has a defining influence on the style and quality of the wine
What is a GI
A designated vineyard area within a country
What is the name of the body that managed global trade agreements
World Trade Organization ( WTO )
What is an example of a change in labeling practice as a result of GI legislation brought in by the WTO
Australian producers can no longer label their wine “Chablis”
For GI and PDO labelled wines how much of the wine must come from the designated area of origin
85% for GI and 100% for PDO
What are the 2 quality categories for european GI wines
Protected Designation of Origin and Protected Geographical Indicator
What do french winemakers generally put on a label instead of PDO
Appellation D’Origine Controlee
Which is more specific and tightly controlled PDO or PGI
PDO
What is slowly being replaced on French wine labels by PGI
Vin de Pays
Though PGI are less restrictive in terms of which grapes can be grown what 2 things are still likely to be stipulated
Vine yield and production volumes
True or False. The PGI category consists of a vast array of wines of different quality
True
True or False. Like PDO wines, PGIs rarely specify the varietal on the label
False
Is it legal in Europe to produce a wine without a GI
Yes
Is it usual for Non EU wines to have a GI
Yes
Is it still legal for producers outside of the EU to use EU specific terms like Fino or Amontillado to indicate a style of wine
No
What 2 aspects of alcohol consumption are controlled by legislation
Minimum age to purchase and consume. Maximum amount permissible in the bloodstream when operating a motor vehicle
How do some governments try to limit marketing and advertising of alcohol
By limiting the claims that can be made about lifestyle and encouraging / requiring the use of responsible drinking messaging
