Types of Business Engaged in the Production of Wine Flashcards
Describe the advantages of estate wines.
Retain control over entire process. Chose the style of wine made and ensure quality at every stage.
Keep all profits from production.
All profits from sale if no intermediaries.
How do estates tell the story of the wine?
Talk about specific vineyards, how it was produced, winemaker philosophy, etc.
What is the main disadvantage to estate production?
The cost of managing the vineyard and equipping and running the winery.
What are the two options growers have for selling their grapes?
- Contract with a specific vineyard
- Sell on the spot market
What are the advantages and disadvantages a grower has when entering into a contract with a producer or merchant?
Advantage – certainty of a sale and security
Disadvantage – if grapes do not meet quality requirements they may be rejected or purchased at a reduced price.
What is the advantage to being a grower-producer?
They do not need to incur the costs of maturation or of marketing wine.
What are the disadvantages to being a grower-producer?
You lose control over the style of the finished wine, and you will make a smaller profit.
What is the chief risk to a wine merchant?
Lack of control over the grape growing or winemaking processes.
Describe the key advantage to being a wine merchant.
Not having the expense of buying and managing vineyards.
What is En primeur?
Purchasing a producer’s wine while it is still in barrel and it remains in the producer’s cellar until bottling.
Describe a downside to a co-opertive.
The decision making process can be slow and cumbersome, and the agreed course of action may not always be to the liking of individual members.
What advantage does a custom crush facility have over a co-operative?
The company can make quick decisions and does not have to get the agreement of members.
