week 7 online material #1

Question 1

What period does the global wine industry’s catch-up cycle cover in the article?

Answer 1

1960-2010

Question 2

Which countries dominated the global wine industry until the late 1980s?

Answer 2

France, Italy, Spain, Germany, and Portugal

Question 3

What key event in 1976 marked a turning point for New World (NW) producers?

Answer 3

The Judgment of Paris, where Californian wines were rated higher than French wines by French judges in a blind tasting.

Question 4

What concept did Abramovitz (1986) introduce regarding the catch-up process?

Answer 4

Technological congruence and social capabilities.

Question 5

What role did supermarkets play in the rise of NW producers?

Answer 5

Supermarkets required large volumes of affordable, branded premium wines, giving NW producers an edge over traditional European wines.

Question 6

Q: Which New World countries emerged as key players in the wine industry by the 1990s?

Answer 6

A: USA, Australia, Chile, and South Africa

Question 7

Q: How did OW producers like Italy, Spain, and France respond to NW competition?

Answer 7

A: They focused on producing high-quality wines, modernized vineyards, adopted advanced technologies, and embraced new marketing strategies.

Question 8

Q: What is ‘terroir,’ and how is it important to Old World (OW) producers?

Answer 8

A: Terroir refers to the unique qualities of wine associated with specific regions, giving OW producers a competitive advantage.

Question 9

Q: What regulatory change did the EU implement in 2008 for the wine industry?

Answer 9

A: The EU adopted a more market-driven approach, relaxing stringent regulations to make producers more competitive.

Question 10

Q: Which countries were the latecomers that gained prominence in the mid-2000s?

Answer 10

A: Argentina and New Zealand

Question 11

Q: Why did Australia experience a slowdown in wine exports in the mid-2000s?

Answer 11

A: Currency appreciation, rising costs, and an inability to adapt to demand for differentiated products.

Question 12

Q: Which Asian country has become a significant emerging market for wine?

Answer 12

A: China

Question 13

Q: What is the potential future role of China in the global wine industry?

Answer 13

A: China might become a significant producer and exporter, challenging both Old World and New World producers.

Question 14

Q: What was the main competitive advantage of NW producers like Australia and the USA during their initial catch-up phase?

Answer 14

A: Innovation in products and processes, rather than just cost advantages.

Question 15

Q: Which countries are considered Old World (OW) producers?

Answer 15

A: France, Italy, Spain, Germany, and Portugal

Question 16

Q: What does the concept of “windows of opportunity” refer to in the context of the wine industry?

Answer 16

A: Changes in market demand, regulations, or technology that allowed latecomers to catch up with established leaders.

Question 17

Q: Which organization was established in South Africa in the late 1990s to enhance the wine industry?

Answer 17

A: The South African Wine and Brandy Corporation (SAWB).

Question 18

Q: How did New Zealand successfully enter the premium wine segment?

Answer 18

A: By focusing on wines produced in a cooler climate and associating its best wines with their terroir.

Question 18

Q: What is the Appellation of Origin Control (AOC) system?

Answer 18

A: A regulatory scheme introduced by the EU to protect the geographical origin of wines and ensure quality.

Question 19

Q: What significant merger took place in Chile in 2007 to guide the wine industry?

Answer 19

A: The merger of Viñas de Chile and Chilevid to form Vinos de Chile.

Question 20

Q: What are flying winemakers?

Answer 20

A: Highly skilled professionals who work as consultants globally, transferring knowledge and facilitating rapid improvements in wine production.

Question 21

Q: What does the term ‘de-commodification’ mean in the context of the wine industry?

Answer 21

A: Transforming standardized commodities into high-quality, diverse products with rising barriers to entry and higher value-added content.

Question 22

Q: What challenges did the French wine industry face in maintaining market share?

Answer 22

A: The French industry faced structural weaknesses, polarization between low-priced wines and prestigious vineyards, and competition from New World producers.

Question 23

Q: What impact did the Judgment of Paris have on the global wine industry?

Answer 23

A: It demonstrated that New World wines could compete with Old World wines, opening opportunities for NW producers to enter global markets.