...a new line of Italian wines his group had developed, despite concerns from Australian HQ?§ § In response to a UK market opportunity, which entry-level wine should be introduced in Europe: Kelly’s Revenge, a wine developed by his European team, or Banrock Station, a wine developed by Australian HQ? o Steve Millar, Carson’s boss at HQ in Australia, believed strongly in decentralized decision-making and allowing Carson to make his own decisions, but he wanted to make sure that decisions made in Europe where consistent with BRL Hardy’s strategy to develop global brands. • Industry Background o Despite meager beginnings, by 1996, BRL Hardy had become the second largest wine producer in Australia. o Throughout the 1990’s, the Australian wine industry experience rapid growth and international expansion. Australian wines were becoming a “hot trend” throughout the international wine community. o The UK was the largest worldwide importer of Australian wine exports • Company Background and History o BRL Hardy was the result of a 1992 merger between 2 competing Australian wine producers: BRL and Thomas Hardy & Sons. At the time of the merger, the companies had very different cultures: BRL was known as very “aggressive and commercial,” while Hardy was known as “polite and traditional.”§ o The merger occurred because both companies were struggling financially, particularly with their failing international acquisitions and partnerships. Both companies believed that they would...
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...Scientific Article DALAT WINE: CHALLENGES IN ESTABLISHING THE NATIONAL WINE BRAND POSITION IS STILL YEARS AHEAD -*Ngo Binh, MA. in Marketing Bui Thi Lan Huong, PhD. I. COMPANY HISTORY 1.1 Wine manufacturing traditional in Dalat (Vietnam) Dalat wine has been popular in Dalat, an attractive city located 1500 m above sea level on Langbian high lands. For long time ago, Dalat wine has been produced traditionally by local producers from blackberries (dau tam). Traditional wine makers in Dalat grow themselves dau tam at Bong Lai area. It is reportedly that the first wine producer was Lafaro, a local company founded by Nguyen Huu Duc in 1974. This company imported a new variety of dau tam to produce its wine. Unfortunately, the company stopped to operate in 1975. Nguyen Chi Man, a 80-year-old man, who did distribute this wine at that time, asked the company's owner this variety of mulberry' seeds to grow, then to make wine for his own consumption and later on for his small business in Dalat. Since then, other traditional wine makers follow him to open wine factories and mulberry plantations, especially in Bong Lai. Because of their small scale, they did not build up particular brand name for their wine. Dalat wine has been considered effectively as a “geographical indication”. Dalat wine has been consumed mostly by Dalat residents. The mind climate of Dalat is the favorable place for consuming red wine, especially in traditional holidays. According to Nguyen Trong Anh Dong, Vice-Secretary...
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...Summary The New Australian Company is a new red wine brand that will be introduced in Singapore. The brand is a unique and high quality red wine brand that meets the growing preference of consumers. It will be distributed to several hotels, restaurants, supermarkets, and wine boutiques/shops that are located in the commercial business districts of the city-state. The brand is managed and owned by a group of wine-lover businessmen who have tremendous experienced in business administration, marketing and sales management and customer service. The owners are now looking for additional investments in order to capitalize the project well. The company has already made several negotiations with successful business distributors in Singapore. The company is confident to compete with many large distributors because it is closely working with top-notch suppliers and manufacturers who are known as wine experts or cellar masters. The target market is the Generation Y or the millennial because it is 77 percent of the population. This group also consumes wines at a faster and higher rate. The sales forecasts for the New Australian Company begin with $700,000 for the first year, and this will increase to 50 percent ($1, 050,000) in the second year, and 60 percent ($1,680,000) in the third year of operation. The company will be expecting a profit margin of 30-40 percent, and at least 25 percent return of investment in the first operational year. The company wants to change the consumer’s...
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...The wine industry is one that is very unique and different from the standard food/beverage industry. Specifically, the wine industry relies heavily on the weather and the various businesses utilize the weather data in order to forecast and calculate their production quantity as well as the quality of their crops. The grapes life cycle is extremely sensitive to changes in temperature and is therefore, very cyclical. For example, “grapes grown on east-facing slopes exposed to gentle morning sunlight produce more complex wines than those from grapes with a western orientation and exposure to the hot afternoon sun. In addition, a large diurnal cycle (changes between day and night temperatures) helps to develop the compounds within the grapes that produce richer flavors, while cool nights are critical for the acid level.” (Institute 1) The balance of fine wine is extremely fragile and changes in rainfall and temperature can have a huge effect on the wine produced. With the ease of getting into the wine industry, getting in itself is not very capital intensive and really only requires growing grapes and some equipment. Many people actually make their own wine, which makes it very easy to enter the market. Over the years, the wine industry has greatly evolved. Beginning in 1995, there was an increasing trend towards exports due to the change in the strategic priority of wine producing country, placing exporting as a method of growth. However, looking at the data from the United States...
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...Simulation Introduction to Industry & Companies The U.S. Wine Industry In 2008 the United States was the world’s third largest wine market by unit volume, behind France and Italy, and the largest based on dollar value. Consumption had grown at a compound annual rate of less than 4% over the past decade, and analysts expected annual long-term growth of not more than 3%. Table wine was divided into three segments: basic (jug), popular premium, and super/ultra-premium. Basic represented about 50% of market volume, and consumers tended to buy on price. Popular premium (35%) was purchased based on both price and brand. Superpremium was bought based on brand and quality. Winemaking was capital-intensive: It required land acquisition and vineyard development in addition to large investments in inventory due to lengthy storing and aging requirements. California accounted for over 90% of U.S. production volume, and 75% of U.S. consumption was supplied by domestic wines. Since the mid-1990s, the number of California wineries had doubled to 2,900 and the number of California acres devoted to red wine grapes grew by nearly 90% (acres devoted to white wine grapes grew more slowly). U.S. producers also faced tough competition from imports, which were growing faster than consumption of domestic product. Several years of favorable weather increased crop yields and produced record grape harvests in California. A global oversupply of wine exacerbated the problem. The “wine glut,” combined with economic...
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...Markets & Regulations Wine Industry in Maharashtra: An Analysis Sudipto Mitra Two of the countryʹs biggest grape-producing districts, Nasik and Sangli, are in Maharashtra; 20,000 hectares of vineyards here grow more than one lac tons of grapes a year. As much as 99 per cent of the grapes is used for making honey, crushes and jams, or consumed fresh or dry. The rest is used for making wine. Thus the opportunity in this sector is immense and given proper help and guidance this sector can be of great help for employment as well as for earnings. General rules for bar owners as framed and maintained by the local municipal corporation (as per schedule “e” or “fl3”for grant of licenses) are: • Silver plating of the utensils to be used in the bars compulsory. • Fire license to be procured before starting off with the operations. • Glass tumblers a must for all bars for serving wines etc. • Pest control to be done regularly. • The minimum size to be operational is 450 sq. feet. • Tiles compulsory for the floor. • Clean uniforms for the waiters in the bars. • Separate place for washing utensils. • Kitchen to be a minimum distance from the actual serving place. • Twice painting of the walls of the bars every year. • Restaurant/ bar to be cleaned twice per day. Before actually applying for the license, one is required to operate the bar /restaurant for six months. After applying for the license one is required to pay the fees which may vary between one and half lacs to two lacs...
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...CASE STUDY AUSTRALIAN WINE INDUSTRY 1. Identify Company’s (Witchmount Estate) objectives. [pic] Corporate - To be one of the top 3 wine estates in Victoria within 5 years. - Produce well known varieties of wine, such as, Chardonay, Sauvignon blanc, Shiraz & Cabernet sauvignon. - Develop new varieties like Pinot Gris. - Expansion & development of the winery, by building new modern wine manufacturing & tasting facilities. Build new restaurant. Build Conference and accommodation facilities. - A more recognisable logo “W”. - Wine produced to be divided into separate lines, and to sell in different price categories to cater for a wider market, pricing to be below & above $20 price point. Marketing - On-site and in the local community - Invite well known Australian performers to perform concerts within the winery. Advertising - Local media (newspapers & radio) within 20km radius. - Industry magazines - Conferences - Festivals - In other wine regions of Victoria - The closet winery to Melbourne CBD • Develop relationships with City hotel concierges • Offer their patrons Wine tasting package, Tour to the winery for a meal and wine tasting, with buses arranged by Witchmount to transport patrons. 2. Define the problem ...
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...Robert Mondavi Corp. Analysis I. Summary Company founded in 1966 by Robert Mondavi in Napa Valley, California Company vision to make California a recognized wine producing region alongside great winemaking regions of Europe Major focus on technology and wine growing techniques Production of premium to super ultra premium wines Mondavi focuses on personal sales, wine competitions, and lavish parties to promote the wines rather than conventional advertising Mondavi has a portfolio of premium to super ultra premium wines to fill various price points and niches in domestic wine market 1981 Opus One joint venture with Baron Philippe de Rothschild Through 1980's and 1990's, Mondavi acquires many wineries and vineyards throughout California Mondavi develops national following Phylloxera (vine killing insects) begin to infiltrate California vineyards 1993, Mondavi, in need of capital due to extensive acquisition expenditures in previous decade plus the replanting costs, issues public shares In the mid-1990's, Mondavi begins 3 joint ventures with a Chilean, an Italian, and French firms Wine production in California accounts for more than 70% of wine consumed in America Wines in America are sold through a three-tier distribution 100's of wineries emerge in California, 90% of Mondavi's revenues generated domestically II. Case Profile Problem/Issues in Case Managing multiple brands in the global markets Maintaining domestic...
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...India’s Emerging Wine Industry | December 21: While India doesn’t have the most ideal climate for growing wine grapes, its local industry which is still at a nascent stage, is growing at a rate that more established countries can only envy, writes Subhash Arora looking at what’s driving the growth and how the industry is responding. | After a gap of about three years when the global meltdown and the Mumbai terrorist attack in November 2008 brought the Indian wine industry to its knees, things are looking up once again, with the annual growth of about 25% though not every producer is out of woods.The industry which was barely 150,000-200,000 case strong at the turn of the millennium was growing at the rate of 25-30% for the previous 5 years when the downfall occurred in 2008 after it had reached a peak of 1.5 million cases including about 250,000 cases of imported wines. 2008-2011 saw a slide in the domestic wine production and consumption. It flirted with the peak in 2011-12 (Apr-Mar) and a growth of 20-25% is expected to continue during the next 5 years.Indian market at a glanceA population of 1.13 billion with over half under 35 years, offers a huge opportunity for wine producers. About 300 million belong to the middle class with 30 million as potential wine drinkers; currently there are less than 2 million. India has been traditionally a liquor guzzling country with over 400 million cases consumed annually. Even the relatively new beverage beer has created 160 million-case...
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... Quintana had to decide how much of this year’s harvest should be retained for production of Northern’s own brand of red table wine. THE COMPANY Northern Napa Valley Winery was one of the older wineries in the Napa Valley of California. Northern produced a number of different specialty wines and had established a reputation by carefully producing quite small quantities of several good but moderately priced labels. Unfortunately, these quality wines did not generate sufficient revenues to enable Northern to survive financially and so. in the late 1960s. Northern began producing and marketing a red table wine aimed at the low price sector of the market. Sales of this wine had grown steadily (Exhibit 1) and had become an important factor in maintaining the profitability of the winery. Originally, red table wine had been made from a blend of grape juice that was surplus to Northern’s specialty wine production and some purchased juice. But the success of this product had led to the planting of vines to produce grapes specifically destined for the red table wine. In recent years, Northern had had excess grape juice to dispose of after production of red table wine, but there had been a problem in selling the excess juice to a company, such as TransContinential, for retail sale as grape juice or for conversion into their own house-brand red wine. THE ISSUE In order to decide how much juice was available for sale to TransContinental (or any other possible buyer)...
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...Geographical Market To Export Melita Wines Executive Summary In this report focus is brought forward to the Chinese wine Market. A detailed analysis is done on the market, followed by the competition faced by imported products. Key locations in China for wine importation are named and the Chinese drinking habits are analyzed. The Chinese and Maltese relations are studied. And Cisk is taken as a case study as a success story of a Maltese company that is exporting beer to China and is seeing profits. Lastly, the recommendations and way forward are said as a conclusion. Table of Contents Contents Page Title Page 1 Executive Summary 2 Table of Contents 3 Chinese wine industry 4-5 Competition and Pricing 6 Key locations 7 Drinking habits 8 China- Malta relations 9 Case study 10 Recommendations 11 Bibliography 12 * Brief History of the Chinese Wine Industry While there have been commercial wineries in China since the end of the 19th Century, production has only evolved into a serious industry in the past two decades. There are now an estimated 450 wineries, although the largest four hold around 50 % of the market share. Imported wine reached the height of its popularity in 1996 when it occupied half of the Chinese market. When China moved to restrict wine imports with quotas and high tariffs, domestically produced wine increased its dominance in low and medium...
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...By the mid-18th century in France, grape growing supported 1.5 million families and an equal number in wine-related businesses. Eventually, it accounted for one-sixth of France’s total trading revenue, and was the country’s second-largest export. Rather than resisting such government classifications and controls, producers often supported and even augmented them as a way of differentiating their products and raising entry barriers. Later, other wine regions of France were given official recognition with the classification of Vins Delimités de Qualite Superieure (VDQS), but these were usually regarded as of lower rank than AOC wines. Below VDQS were Vins de Pays, or country wine -- inexpensive but very drinkable wines for French tables, and increasingly, for export. These categories were quite rigid with almost no movement across them. This was due to a belief that quality was linked to terroir, the almost mystical combination of soil, aspect, microclimate, rainfall, and cultivation that the French passionately believed gave the wine from each region— and indeed, each vineyard— its unique character. pita annual consumption reached about 80 liters in Argentina and 50 liters in Chile in the 1960s. While such rates were well behind France and Italy, both of which boasted per capita consumption of 110–120 liters in this era, they were comparable with those of Spain. First, suitable land was widely available and less expensive, allowing the growth of much more extensive vineyards...
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...Executive Summary Chateau de Margaux is one of the world’s most renowned premium wine brands for many decades. Their wine offerings include only the first-growth and the second-growth wines. The company been profitable and is considered a very highly reputable and successful premium wine brand from the region of Bordeaux, France. Being successful and profitable often bring up questions like, how can the company do better? With the increasing demand for wine around the world and the increase of number in new wine producers around the world with exceptional potential, could the Chateau de Margaux still be competitive in the future? What are the possible ways for this company to expand and what are the pros and cons of each? In this research paper, we examine the situation of this company, the wine market international viewpoint, and the domestic influence of the wine industry and tradition in Bordeaux. With all the information and data that we researched and analyzed, we were able to locate the problems of the company. In turn, we came up with objectives for the company to fulfill in order to solve all of the problems that arises and to increase profit, increase their skills of today’s new world marketing, increase their knowledge of the consumers and the market, and capture new market opportunities. We come up with a new business model to expand the Chateau de Margaux Company and to help this company fulfill these objectives. The new business model is called the international partnership...
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...“Wine has been with us since the beginning of civilization. It is the temperate, civilized, sacred and romantic mealtime beverage”- Robert Mondavi 6000 B.C- is the time when, Mesopotamians first began to produce Wine. Since then Wine is playing an important role as enjoyable, romantic and authentic beverage for the people of all the classes. As the centuries passed, Europeans introduced their Wine making techniques to the rest of the world including America, Australia and South Africa. 1966- To become the first winery in California to produce premium Wine brands that would compete with the other premium wine brands of the world, Robert Mondavi founded the RMC Winery. With the clear strategy of gaining high reputation in premium wine segment, RMC at very inception align its business plan with its competitive strategy. As to produce limited quantity of super to ultra premium wines using high quality grapes, this helps them to build diversified brand portfolio particularly in price points and niches premium Wine market. Again as a part of their competitive strategy RMC lead the Wine industry in several process innovation and operational improvements including gentle grape handling, cold fermentation, stainless steel fermentation tanks and Oak barrel aging. In 1972 Los Angeles Times recognized RMC’s Cabernet Sauvignon as the best Wine produced in California. At marketing front to stimulate demand, RMC took some notable steps like Tours of Winery, Training sessions at fine restaurants...
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...Schultz Wines Limited: Pre-seen Information Examination Case Study: What type of organization is Schultz Wines Limited? Schultz Wines Limited was established in 1840’s by one of the founding winemaking families of Barossa Valley in South Australia who had migrated from Germany. The company was listed on the Australian Stock Exchange in 1996 and operates from a single site located in Barossa Valley. The company’s current Managing Director, Fred Schultz, is a fifth generation winemaker, a direct descendent of original Schultz family, and the company maintains the tradition of being an independent family wine company with premium brands, despite being a publicly listed company. What industry, product segments/markets does Schultz Wines Limited operate in? Schultz Wines Limited is the 7th largest company in the Australian Winemaking Industry and competes in key export markets in North America, Europe and Asia. Core activities cover grape growing and procurement, harvesting, crushing (includes crushing for other wineries), storage and fermentation of grapes and distribution to local & international markets, having vertically integrated, Schultz Wines has had its own vineyard and produce 20 per cent of its grapes requirements. Schultz Wines does not bottle its wines. They are bottled by a nearby bottler that also packs them ready for distribution to various markets. Schultz Wines operate in all three major product segments: Table wines (includes Red & White varieties)...
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