Wine Businesses Flashcards
What are the eight different types of wine business models
1) estate
2) grower
3) grower-producer
4) merchant
5) co-ops
6) custom crush
7) virtual winemakers
8) conglomerates
What two options do growers have for selling their grapes?
1) contracts - often long standing ones with producers
2) sale through the spot market
At what stage will grower-producers sell their wine?
At the newly made wine stage - they’ll sell the new wine to a merchant t mature it and change the style if they wish.
How has the role of the merchant changes over time
They used to buy wines from grower-producers and blend them and age them to make wine they bottled and sold under their own name. The downside was they had little control over the quality. Now they tend to work closely with the producers to ensure quality, and to bag the best grapes!
What are the benefits of being a merchant
As you buy from multiple producers you are spreading the risk of a bad harvest - particularly useful in burgundy which has small parcels and is prone to localised hail damage
They also avoid all the costs of owning and running a vineyard which in places like champagne are really expensive
How do grower merchants differ from grower -producers and merchants?
They tend to act like both simultaneously- guigal is an example of a grower-merchant who produces their own grapes and uses it for their best wines, while they use bought grapes for their lower end skus.
Some differentiate between those wines (domaine dujac in burgundy is an example)
Do negociants work in the same way across the world?
No. In burgundy for example they are much more involved in the wine making while in Bordeaux they tend to step in at the EP stage earliest.
What event was the catalyst for the en primeur system and why
WWII
The Châteaux didn’t have cash and couldn’t afford to sit on the wine, so they sold it cheaper in matured, so they would have cash flow.
What is a downside to the democratic system of co-ops?
Decision making can be slow as it needs to be passed through the members
What are custom crush facilities and where would find them primarily
They are rent-a-winery facilities.
Usually found in California.
What quality of produce is usually made in a custome crush facility
Any! Everything from bulk to premium
What are virtual winemakers?
They buy in grapes, and use custom crush facilities. So they don own any of the winemaking stages.
