World Wine Market

World Wine Market

...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...

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