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Global Wine War
Transcript of Global Wine War
challenge the Old World?
How did the new world challenge the old world?
The Mogador Team : Sébastien BENAC-LHUILLIER, Charlotte CAPELLE,
Vicheara CHHUN, Elodie ROUSSEAU, Zineb TOUNSI, Xiachao WU
The European Community (EC) passed regulations new world’s practices illegal. (using appellation names)
New World wine makers gradually adjusted by identifying their wines by the grape variety used
watershed in the wine industry: The Judgment of Paris On May 24, 1976
Growth of a traditional and regulated
European wine world
Changing purpose of the wine consumption
Labor intensive and fragmented production
Limited cross-border shipping until the 18th century
Birth of a global wine market in the late 18th century with the gain of greater wine stability and longevity
Laws and regulations for quality and regional identification
Rise of an innovative and challenging New World
From the 18th century export of the Old World wine making tradition in the US, Australia, Argentina, Chile & South Africa
After WW2 increase of the demand for high quality domestic wines in the New World
Climate, size and availability of the land favorable to an increase of the wine production
Innovation in grape growing and harvesting as well as packaging & marketing
GLOBAL WINE WAR
How did the New World
challenge the Old World?
The U.S. Battle
The U.S. in 3 rd position of importer
It is one of the most difficult imports to crack due to:
Its distance from the most producing countries
State-by-state regulatory structures
Its complex three-tier distribution system
Drivers of U.S.
The U.S Drawbacks
Wine’s high price due to :
Extremely high land costs
Strategies in Australia
“Directions to 2025” Strategy
Expand the image into four different sub-brands
Create opportunities for consumers to taste a wider diversity of Australian wines
Increase consumer awareness through promotion of wine tourism
4 different targets
Strategies in the U.S
Targeting super-premium and ultra premium segments
Strategies in France
Campaign against Imports from CAV = Diminish the impacts of foreign wines on the wine industry
Campaign to recover “lost markets” & to relaunch French wines
Simplify the regional appellations = To group together under the same brand “Sud de France”
Minimize wastes by setting a “surplus wine” process
« Sud de France » advertising
20% drop in worldwide consumption
between 1970 and 1990
Reasons of changes
by the Old World
A lack of flexibility due to regulation to face the various demand trends
The isolation of producers due to marketing handled by negociants to face the fast changing consumer tastes
A lack of consumer knowledge and marketing skills
Failure of the counterattack
from the Old World
3 main directions
Recommendations to the New World
Increase communication : wineyards visits, quality image in Europe, blind tests
Differentiate through premium wines development
Recommendations to the Old World
Create cooperatives for more > reduces costs, helps ensuring constant quality
Efforts in marketing : differentiate through packaging, renewing image while re-stating superior quality of wines
Encourage French consumption > visits of vineyards, events etc., more trust and interest, strengthening relationships with customers
More flexible government regulations : taxes and labour cost hinders growth.
Beyond the case
Thank you for your attention.
Any question ?
2008 - report on Wine requested by the Ministry of Agriculture = Strategic plan to 2020
Founding of the "Conseil supérieur de l'Oenotourisme" in 2009 = Contest rewarding initiatives promoting wine tourism
Taste-A-Wine, Tweetawine, U Wine Network... = Creates a link with customers
Creating low price brand (such as Charles Shaw)
Focusing on some specific wine brand (Gallo’s Carlo Rossi)
Squeezed labor cost
No land available for expansion in premium wine areas