Case Analysis:
GLOBAL WINE WARS

Recommendations for the French Wine Industry *
Issues:

1. French wine makers continue to lose global market share due to the entrance of new competitors from Australia and other “New World” wine makers. French wine makers face an existential threat should they concede the U.K export market. 2. 3. 1. The wine industry as a whole is handicapped by its own traditional production issues including high and rising input costs, long value chain (many middle men) and the fragmentation which enables suppliers to have extensive bargaining power.

* Rationale behind our recommendations: * Rather than making recommendations for an individual wine company or an AOC, we believe that a national initiative along with industry-specific changes is necessary given the scale of the issue. We believe that implementing government-based recommendations will foster the changes sought with the industry-specific recommendations.

Recommendations to the French government:

*
Create an initiative from the top by exploiting the long reputation of gold wine crafters and creating a national advantage:

* Herve Gaymard, the French Minister of Agriculture, with the support and visibility of Jacques Chirac, President of France, should kick off a new initiative: La Renaissance du Vin Français de l’an 2003 (The 2003 French Wine Renaissance) with a new vision: “France, the gold standard in wine production with new innovations” (an old dog that's learned new tricks). Maintain the “French countryside small vineyard” value that separates France from the rest of the industry with a cooperative marketing strategy: * In 1991, the “French paradox” was very successful in increasing wine consumption across the board. 12 years later, an update that continues to show a relationship between wine consumption and