Market Analysis: Global Wine Wars-New World Challenges Old
Global Wine Wars: New World Challenges Old
This case describes the global development of wine industry, and how new world wine players occupied the global market share from old world wine producer gradually. It is very interesting that author selected the Britain as the sample stage for the battle between the new world wine campaign and the traditional campaign. Nowadays, in the “Old World” countries of Europe, where the bulk of the volume is still produced, this is of great concern. However, consumers, especially younger drinkers, prefer the high quality wine from famous brands which are imported into Europe by the “New World” player, and the growth rate is at average10% per annum over the last decade. In new wine world, Chile has dominated the South American wine world and Argentina is facing this challenge of losing the number one position in South America, and is impacted much on market share dramatically. Maybe the structure of new world wine industry could be renewed. The competition seems to be more fiercely. Increasing number of producers enhances their capacity to cater to the marketing demand. However, the growth of demand today cannot catch up with the increase of wine production. EC predicts that there will be as much as 15% of Europe’s wine production surplus to requirement in the future 5 years. This case focuses on the wine battle in Britain. The UK is the largest importer of wine (by value) in the world and a high per capita consumption of wine, but more and more wine consumed in Britain is imported from other countries, because it is usually hard to grow the good grape to produce wine in Britain due to the local unsuitable weather. But the British wine market is fragment, and top three players occupy the 17% of market share. Political. The new players who want to enter the British market are affected by government regulation of wine and high import duties applicable....
References: _Alta Smith and Brad Smith. (Sep. 2007). “Old world wines in the new world”. _
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Corey M. Reardon. (Oct. 2006). “The changing World of Wine”.
Robert D. Tollison. (Apr. 2007). “ old wine, new wine”.
Industry profile. (July 2009). “Wine in United Kingdom”.
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