California wine cluster

KP
  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

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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
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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
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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...