Global Wine Wars
1. Briefly describe the changing economic geography of the global wine industry in terms of production, distribution and consumption.
The Global wine industry has undergone a monumental change in terms consumer demand and more importantly in the ways it is produced and sold. The consumption, distribution and production has migrated away from the restrictions and regulations of the Old World to the New World ways of smart marketing, branding and serving to customers preferences.
Middle ages emerged as the time when Europe served as the niche market for premium wine. But by and larger grape growing and wine making gradually became a fragmented business. Up to mid 20th century, wine was predominantly produced in European countries such as France, Germany, Italy and Spain. The wine from European region was considered as superior and these countries also turned out to be the largest consumers. As the wine industry began to influence culturally and economically, laws and regulations were prescribed for wine making practices.
In 1976, the “Judgment of Paris” signaled the change in wine industry during the last quarter of the 20th century. (Bartlett, HBR Global Wine Wars, 2009). Although insignificant, wine industry made it to the New World countries as early as the 18th century. But it was not until the post war era that demand for wine began to increase in countries like the U.S and Australia. The new world countries, unrestrained by regulations and tradition, came up with innovative ways (drip irrigation, mechanized pruning, bulk storage) of packaging, marketing and wine making using technology. By the 1990’s, there was a drop in the “traditionally produced” wine countries largely due to the tight government regulations and a long multilevel value chain, and lack of expertise.
Wine consumption began to improve in countries like U.K., Canada, Belgium, and some Asian countries as well. The New World producers had the means and technology along with the
The Global wine industry has undergone a monumental change in terms consumer demand and more importantly in the ways it is produced and sold. The consumption, distribution and production has migrated away from the restrictions and regulations of the Old World to the New World ways of smart marketing, branding and serving to customers preferences.
Middle ages emerged as the time when Europe served as the niche market for premium wine. But by and larger grape growing and wine making gradually became a fragmented business. Up to mid 20th century, wine was predominantly produced in European countries such as France, Germany, Italy and Spain. The wine from European region was considered as superior and these countries also turned out to be the largest consumers. As the wine industry began to influence culturally and economically, laws and regulations were prescribed for wine making practices.
In 1976, the “Judgment of Paris” signaled the change in wine industry during the last quarter of the 20th century. (Bartlett, HBR Global Wine Wars, 2009). Although insignificant, wine industry made it to the New World countries as early as the 18th century. But it was not until the post war era that demand for wine began to increase in countries like the U.S and Australia. The new world countries, unrestrained by regulations and tradition, came up with innovative ways (drip irrigation, mechanized pruning, bulk storage) of packaging, marketing and wine making using technology. By the 1990’s, there was a drop in the “traditionally produced” wine countries largely due to the tight government regulations and a long multilevel value chain, and lack of expertise.
Wine consumption began to improve in countries like U.K., Canada, Belgium, and some Asian countries as well. The New World producers had the means and technology along with the