Analysis of the World Wine Market TABLE OF CONTENTS 1. Introduction……………………………………………………… 1 2. World wine producers……………………………………….…..… 1 3. World wine exports………………………………………….…..….2 4. France productions, exports and international image…….….…..3 5. Success of New World over the Old World : key factors……...…..4 6. Evaluation of different strategies………………………….…....5-8 6.1 Premium & Standard wine market 6.2 Creation of an accessible French brand 6.3 The Global wine company (acquisitions and mergers) 6.4 Appellation d’origine controlee and competitive disadvantage 6.5 Protectionism versus being marketing oriented 7. World wine market: long term predictions………………………..8 8. Conclusion…………………………………………………………9 1. Introduction International competition on the wine market is characterized by a considerable disparity of strategies used by the different producers and wine-producing regions around the world. The objective of this report is to provide an understanding of the competition mechanisms between countries which are traditionally exporters - the “Old World” producers, represented by European countries - and the so called “New World” countries which today compete for the supremacy of the traditional model of wine growing and production. 2. World wine producers The distribution of the world wine producers is clearly detailed in the map below. The Old World producers are located in Europe. France, Italy and Spain are the main producers , followed by Portugal, Balkan states, UK and Germany. The European countries are still detaining a dominant position and they accounted for 70% of world production and consumption in 1999 (by data acquired by Euromonitor). The New World producers are scattered around the world and are represented mainly by: Australia, Chile, United States, South Africa, New Zealand, Argentina and Canada. 3. World wine exports The world wine export are still dominated by the Old World producers (see diagram below), with only three countries (France, Italy and Spain) which account for 60% of the world volumes exports in 2003. Among the New World producers, the largest exports are coming from Australia, Chile and United States. Another interesting characteristic is showed by the diagram below: the value of wine in exports market are increasing at greater rate than volume. 4. France productions, exports and international image ... ... middle of paper ... ...duct quality and reliable supplies. The Old World future ability to counter the ongoing threat from New World producers will depend on adopting an extensive marketing approach: size, branding, distribution channels and new mergers in order to benefit from the new global economy will all play a fundamental role in determining its success. 9. References http://www.bbr.com/GB/db/news-item/623?ID=HKKKBXLQ56900VN&first_news_F=1 http://www.calwinexport.com/pages/MarketInfo.htm http://www.euromonitor.com/Wine http://www.export.gov/exportamerica/NewsFromCommerce/nc_New_Wine.html Global Trade Atlas-Global Trade Information Source 2004 http://www.greekwinemakers.com/members/news/2003/030426.shtml http://iblnews.es/noticias/09/116440.html http://www.jancisrobinson.com/winenews/jr779 http://www.just-drinks.com/features_detail.asp?art=1026 Kotler P., Armstrong G., Saunders J., Wong V. (2002) Principles of Marketing, Pearson Ed.Ltd, pp.185-188 http://www.waitrose.com/food_drink/wfi/drinks/wine/0203046.asp http://www.wine.co.za/News/News.aspx?NEWSID=5995&Source=News http://www.wineloverspage.com http://www.wineoftheweek.com/winervw.html
In 2013 French wine exports earned AUD $11.92 billion. France is known for high end wines bringing a huge economic return.
In recent years Anheuser-Busch has faced increased competition in the U.S. market. As a result of this increased competition the company has been looking overseas for growth and increased profits. The American market is a relatively stagnant market for Anheuser-Busch. There is very little growth in America and 94% of Anheuser-Busch’s sales occur inside America (Anheuser-Busch, 1999). Anheuser-Busch also has the resources to compete with any European brew in the European market. In many countries in Europe, Anheuser-Busch has begun to gain some market share and turn some profits. The Amer...
the United States. With over 80% of our trade exports going to the US, and we being that
According to Global Meat news Brazil is the largest beef exporter in the world with over five billion worth of beef exports each year. Brazil has gone from the fourth largest producer to the largest in less than a decade. Argentina was once one of the largest beef exporters in the world but in recent years there beef exports have decreased due to measures introduced by the Argentinean government to discourage beef exports to feed their growing domestic need for beef consumption. These restrictions on beef exports have recently been lifted and Argentinean beef exports are set to rise once again in the coming years.
Significant market growth for quality branded products seemed possible in Diageo’s core markets, given the size of the informal market and the fact that formal beer and spirits consumption was substantially lower than in developed markets. For example, formal beer consumption per capita was 4 liters per year in Ethiopia, compared to 78 liters in the U.S. and 72 liters in the U.K. Ethiopian spirits consumption per capita was 0.4 liters per annum, compared to 7.4 liters in the U.S. and 5.4 liters in the U.K.
Generally speaking, other alcoholic beverages can be viewed as being a substitute for wine. However, specific substitution of wine in the New World is low because most individuals prefer to purchase wine from a retail facility instead of producing their own. Where as in the Old World the option of producing wine...
When World War II ended, there was an increasing demand for wine in the New World countries, contrary, liter consumption per capita declined in traditional wine consuming countries such as Italy, France and Spain. Old World producers were not capable responding quickly to the demand or penetrating the new markets because limited land and strict rules and regulations. For instance, land is abundant, inexpensive, and extremely apt for grape production in the New World. With much access to land, vineyards were able to expand greatly; vineyards in the United States averaged around 213 hectares, Australia 167 hectares, whereas Italy averaged around 1.3 hectares, and France 7.4 hectares. This caused Old World producers a limited capability of supporting demand. In addition, Old World producers were bound to traditional wine making techniques that we...
It’s easy to understand why Mondavi is primarily involved in the domestic market, with a small number of select partnerships and limited involvement with other wineries in different foreign markets. The company has always considered itself a family operation with an emphasis on high-end quality, and looked to work with similarly voiced companies that operated with similar motives. The partnerships are almost all in the ultra-premium and luxury premium segments, such as the highly prestigious Opus One offering, the minority interest in the Italy’s Ornellaia, and the Frescobaldi partnership that produced three more high-end wines in Montalcino, Italy. Amongst all their partnerships, only the Chilean joint venture produced any offering for the growing popular premium segment, with a Caliterra brand that sold 25% of their product in the United States.
In 2008 and 2009 the wine industry witness a rebound growth where there mid-priced and high-priced wines led growth. In 2010 the U.S. wine consumption reach
The key influence of the coca market comes from the Andean countries of South America: Peru, Bolivia, and Colombia. These countries are responsible for almost exclusively cultivating the coca plant, but Colombia is the main processing nation of the plant into cocaine, at nearly 70 percent (Stares, 2).
Argentina is knows for its agriculture, and growing of beef, and sheep. Patagonia in the south is the main area where the sheep are grazing and beef, which Argentina is estimated to have about 55 million heads of, is mostly grown in the Pampas area. The country also have many other natural resources such as natural gas and mining among others. The maine minerals that are Argentina is exporting are gold and copper. Only gas and mining are combined to make about 15% of the country’s over all export. Wine making is also a huge part of Argentina’s way of life and fifth of the world wine comes out of the country, mostly from the western province of Mendoza (argentina.org.au). Manufacturing in Argentina include many sectors from wood, construction, clothing and textiles to cars, and agricultural tools and machinery to name only a few.
Typically, when one thinks of Champagne they associate it with sparkling wine. However, authentic Champagne may only be yielded in the small region of Champagne in northern France, dating back to the 1700s. Bringing forth the world’s most famous wine, is the Champagne AOC, a region in Northern France.
Earlier it was practiced by the Greeks; Romans & Babylonians to the Egyptians, in these regions people have derived wine out of grapes. Wine was a royal drink that kings use to drink, it was extracted from Vineyards. One of the oldest-known winery was discovered in the "Areni-1" cave in “Vayots Dzor”, Armenia. Since then wine was flourished all across the world. From a local consumption Wine became an International trading commodity.
Gogel, R. and Larreche, J.C. (1991). Pan-European Marketing: Combining Product Strength and Geographical Coverage. San Francisco, California: Jossey-Bass