Wine Industry

The premium wine segment is quite concentrated with high barriers to entry making mergers and acquisitions a strong and prevalent growth strategy. With industry analysts forecasting the demand for premium wine to grow at 8% to 10% per year, many former non-rivals are now becoming a threat. Jug wine producers are entering the premium market and beer and spirit producers

The buyer’s power within the wine industry varies between different places in the world. There are for example strategic differences between Europe and the “New World”. The “New World” includes countries like the US, Australia, Chile and South Africa. In Europe there is a big competition

I. Introduction: Starting in 1970 21 states reduced the minimum drinking age to 18. Another 8 reduced it to 19 or 20. However, these states noticed increases in alcohol-related fatalities among teenagers and young adults. As a result, of the 29 states that had lowered their drinking age, 24 raised the age again between 1976 and 1984. By 1984, only three states allowed 18-year-olds to drink all types of alcoholic liquor. The enactment of the National Minimum Drinking Age Act of 1984 prompted states to raise their legal age for purchase or public possession of alcohol to 21 or risk losing millions in federal highway funds. The states who raised it were given highway funding by the

Various issues and perspectives has encouraged the proposal of editing the restrictions of consuming alcohol in the U.S. There are several states that have exceptions within the law. The U.S. General Accounting Office, otherwise known as GAO reported that 19 states that did not directly prohibit the consumption of alcohol by individuals under 21, but yet the states does has enforcement influenced with the collaboration of the National Minimum Drinking Age Law. Therefore the states of California, Colorado, Maryland, Montana, New York, Texas, West Virginia, Wisconsin, and Wyoming can only be prosecuted with public possession of alcohol, with the exception of underage drinking. With 95% of countries around the world allowing 18 year olds to legally drink, lowering it will help regulate college and casino alcohol rules and with the 1984 National Drinking Act being ineffective lowering the drinking age to 18 would be logical and fair for the legal privileges of an 18 year old that has the privileges to marry, enlist in the military, vote, and even tried in the legal

In 1984 the United States Government approved the National Minimum Drinking Age Act that required that “the States prohibit persons under 21 years of age from purchasing or publicly possessing alcoholic beverages as a condition of receiving State highway funds.” Even though this bill was nowhere near the magnitude of the prohibition act that was passed less than a century before it, the act still damaged the relationship between individuals, firms, and the United States government. Although the intentions of the government were to control alcohol consumption among citizens aged 18-21, the passing of this act affected the equilibrium already established by a consumer-producer market, created a market failure and a black market, and introduced excise taxes into the market.

Identifying a new market can be a challenging task. However, when examining the preferred alcoholic beverage of three major age groups, one in particular stands out. Of the three age groups, fifty and older consumers are the age group with the smallest preference for beer. Figure 2 on the following page compares the alcoholic beverage preference for three major age groups.

Vincor International Inc. is in the business of selling premium wine to discerning wine drinkers. The company relies on its firm resources and capabilities from which it derives its distinctive competencies. These include the ability to produce market and distribute premium New World wines to a growing market of customers around the world. The total estimated world market is worth approximately $190 billion dollars (U.S.).

The macro environment surrounding alcohol sales and consumption has generally been stable and has experienced incremental growth throughout history. In the United States, the number of per capita consumption of alcohol has declined slightly, but has consistently remained around 2.5 gallons, per person, per year. The lower class, specifically females in the lower class are responsible for a majority of alcohol consumption in the United States. The highest per capita consumption worldwide is as follows: Luxembourg, Ireland, France, Hungary, and Denmark, (the US ranks 22nd.)  According to one article, “the beverage alcohol industry contributed over $21 billion directly to state and local revenues during 2010. Of that amount, distilled spirits accounted for over $8.8 billion or 41% of this direct revenue” (“Distillery Spirits”).

Vincor is a well established wine and wine-related producer based out of Mississauga Ontario. Vincor wants to use their current success and venture into the refreshment market by introducing a new line of coolers. In order to do this Vincor will have to decide what type of cooler to produce as well as the design, packaging, price and marketing strategy. Market research was conducted to determine who the consumers in the alcoholic refreshment industry were, what their interests were and what the current trends were. Vincor determined that 56% of Canadians 19 and older claimed to drink one or more of the different types of refreshment beverages.

Executive Summary - Coors’ prominence in the beer industry has always been overshadowed by its bigger competitors like Budweiser, Miller and Molson, but new insights unearthed by this report may pave new roads for a more exciting future. The first part of our analysis describes the typical Coors drinker as an aged 25 to 44 male light beer drinker consuming almost seven bottles a week. He also works in a managerial or professional occupation earning over $30,000 annually. Coors’ three competitors also exhibit a similar consumer base with the exception of Molson being predominantly regular beer consumers. These conclusions are tested to be statistically significant.

The Mcguigan interest in the Australian Wine Industry goes back four generations. Owner Patrick McGuigan the first of four generations to enter the wine industry was a dairy farmer by trade.

• Compliance and understanding of the implications and ever evolving laws associated with manufacturing and distribution of alcohol (e.g. excise duties increases).

In 2001 there were over 1 million wine producers worldwide, and no firm accounted for more than 1% of global retail sales. Because of this, it would be nearly impossible for the Robert Mondavi winery to dominate sales in any region. Due to Mondavi’s efforts, the winery became one of America’s most innovative,

The United States wine industry is a 12 billion dollar industry and is composed of 7,000 wineries and around 1,800 different companies. The three major companies within the industry are Constellation brands, E&J Gallo, and The Wine Group Inc. The industry has made its way through the economic crisis at a better rate than some of the other U.S industries however in order for them to continue to see any type of growth it is important that they acknowledge their issues and find ways in which they can rectify them. The majority of the issues among the industry are problems that cannot be directly controlled by individual wine companies. Therefore it is imperative that wineries find away to use these issues to their

PepsiCo has the potential to encourage consumers into drinking water and eating healthier snacks that they promote. Bottled water is rising and it is a healthy substitute to sugared drinks. Restaurants, clubs and venues are using their beverage to make special drinks. This is where alcohol industries gains more profit to their company. However, with the ability to adjust customer’s demands with new and appealing products it can dominate to success.