week 7 online material #1 Flashcards
Gradual catch up and enduring leadership in the global wine industry
What period does the global wine industry’s catch-up cycle cover in the article?
1960-2010
Which countries dominated the global wine industry until the late 1980s?
France, Italy, Spain, Germany, and Portugal
What key event in 1976 marked a turning point for New World (NW) producers?
The Judgment of Paris, where Californian wines were rated higher than French wines by French judges in a blind tasting.
What concept did Abramovitz (1986) introduce regarding the catch-up process?
Technological congruence and social capabilities.
What role did supermarkets play in the rise of NW producers?
Supermarkets required large volumes of affordable, branded premium wines, giving NW producers an edge over traditional European wines.
Q: Which New World countries emerged as key players in the wine industry by the 1990s?
A: USA, Australia, Chile, and South Africa
Q: How did OW producers like Italy, Spain, and France respond to NW competition?
A: They focused on producing high-quality wines, modernized vineyards, adopted advanced technologies, and embraced new marketing strategies.
Q: What is ‘terroir,’ and how is it important to Old World (OW) producers?
A: Terroir refers to the unique qualities of wine associated with specific regions, giving OW producers a competitive advantage.
Q: What regulatory change did the EU implement in 2008 for the wine industry?
A: The EU adopted a more market-driven approach, relaxing stringent regulations to make producers more competitive.
Q: Which countries were the latecomers that gained prominence in the mid-2000s?
A: Argentina and New Zealand
Q: Why did Australia experience a slowdown in wine exports in the mid-2000s?
A: Currency appreciation, rising costs, and an inability to adapt to demand for differentiated products.
Q: Which Asian country has become a significant emerging market for wine?
A: China
Q: What is the potential future role of China in the global wine industry?
A: China might become a significant producer and exporter, challenging both Old World and New World producers.
Q: What was the main competitive advantage of NW producers like Australia and the USA during their initial catch-up phase?
A: Innovation in products and processes, rather than just cost advantages.
Q: Which countries are considered Old World (OW) producers?
A: France, Italy, Spain, Germany, and Portugal
Q: What does the concept of “windows of opportunity” refer to in the context of the wine industry?
A: Changes in market demand, regulations, or technology that allowed latecomers to catch up with established leaders.
Q: Which organization was established in South Africa in the late 1990s to enhance the wine industry?
A: The South African Wine and Brandy Corporation (SAWB).
Q: How did New Zealand successfully enter the premium wine segment?
A: By focusing on wines produced in a cooler climate and associating its best wines with their terroir.
Q: What is the Appellation of Origin Control (AOC) system?
A: A regulatory scheme introduced by the EU to protect the geographical origin of wines and ensure quality.
Q: What significant merger took place in Chile in 2007 to guide the wine industry?
A: The merger of Viñas de Chile and Chilevid to form Vinos de Chile.
Q: What are flying winemakers?
A: Highly skilled professionals who work as consultants globally, transferring knowledge and facilitating rapid improvements in wine production.
Q: What does the term ‘de-commodification’ mean in the context of the wine industry?
A: Transforming standardized commodities into high-quality, diverse products with rising barriers to entry and higher value-added content.
Q: What challenges did the French wine industry face in maintaining market share?
A: The French industry faced structural weaknesses, polarization between low-priced wines and prestigious vineyards, and competition from New World producers.
Q: What impact did the Judgment of Paris have on the global wine industry?
A: It demonstrated that New World wines could compete with Old World wines, opening opportunities for NW producers to enter global markets.
