California wine cluster
Research and
innovation center
such as the
university of
California (now
Department of
Friut studies) at
Davis for fighting
diseases and
introducing new
technologies.
State run
universities, like
U.C Berkeley,
UC Riverside,
Fresno State
Distributors like
(SWS) because
of its
consolidation
Supermarkets
like Walmart
because of its
consolidation
KA
1.
2.
VP
Grape growing
winemaking
luxury,
ultra premium,
super premium,
popular premium
jug wines
“To lead the world wine market
in terms of production,
consumption, and exports”
KR
•
•
•
•
•
CR
In off-premises level,
wholesales and retailers
plays active role in
building wine brands,
In on-premises level,
Wine-by-the-glass and
winery sponsored
dinners was way to reach
costumers.
Wine Tour and
Tasting leads to
increase in consumer
education.
Ads on Wine
Spectator magazine,
60 minutes TV
program by French
Paradox broadcast
CH
Off premises
• Winery (own
wholesaling
companies)
• Exclusive wholesaler
(5 states were
“control” states in
which the state
functioned as e.w)
• Retailer of table wine
On premise
distribution through
hotels, restaurants,
bars, other vendors
Land from 8*12 to 4*4
spacing (Less available
space for new
vineyards), its price from
$28,000 to $100,000 per
acre for wine planters
Equipment (by hand and
mechanical methods)
Labor (Migrant laborers)
$Cost structure
FC
•
•
Land
Planting and
development of
land
• PPE deprecation
expenses
CS
11% of adult aged 21
to 59 (on daily basis)
accounts for 88 % of
total consumption in
the US.
$Revenue
VFC
VC
•
•
•
•
•
Bottling and Packaging
Sale and Marketing
Administration cost
Land
Wage ($6.80 to $8.40
p/h )
FR
VFR
•
Export promotion
assistance program by
US Congress for trade
shows and advertising
in target markets
VR
•
Revenues...
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