Essay On Wine Industry

1) Short Introduction

The wine sector has a long history that dates back to early human history, when fruit juices accidentally fermented, leaving behind a pleasant drink for people to enjoy to the present. Wine is a mark of cultural heritage; it is an ancient and celebrated drink; it is an international symbol of festivity. About 6000 BC, the first trade took place between the Ancient Armenia and Babylon. With the social and technology development, wine sector not only develop more precise control of the brewing process, but also develop a variety of new brewing methods. In the modern era, wine spread from Europe to the New World along with the conquistadores and colonists of the 16th and 17thcenturies, so they are divided into the Old World and the New World, the New World stands for the US, Australia, New Zealand, Chile and Argentina, the Old World represents France, Germany, Italy, Spain and Portugal and other countries. The Old World stands for traditional and history, while the New World implies technology and marketing. The New World has very few restrictions, producers are free to plant whatever grape varieties they want and make the wine however they deem appropriate. On the contrary, the Old World has to follow a detailed set of rules that govern what can be planted, density of planting, training and pruning methods, and so on. With the increase of competitive, there is a need for it to adapt to new conditions and market demands to stay profitable and continue its success.

As far as regional origins are concerned, the French vineyard can be classified into 14 main wine- producing regions, which are, as ranked in terms of quantitative and qualitative importance: the Bordeaux, Burgundy, Beaujolais, Champagne, Alsace, Jura...

... middle of paper ...

...gional wine producers were traditionally specialized in table wine, characterized by a relatively low quality and brand power, which created additional barriers to successful strategic differentiation and market re-positioning.

6. Languedoc Roussillon is not well known like Bordeaux and Burgundy, so it needs to let world to be familiar with it and improve promotion.

7. Lack of knowledge and skills. Many small wine producers were organized as traditional family firms, with exclusive agricultural and production expertise passed down from one generation to the next. In the past, the relatively constant level of demand did not require specific commercial or marketing skills to sell the produced wine. Therefore, many producers lacked the necessary expertise to understand the long-term consequences of the market failure, and the capacity to take decisive strategic action.