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The Global Wine Industry

 

History

The wine industry has a long history that dates back to early human history, when fruit juices accidentally fermented, leaving behind a pleasant drink for people to enjoy to the present.

Consumer Culture

What appears to be a simple drink, wine actually has deeply rooted and complex cultural ties, leading manufacturers to work and market within the confines of this intricate industry.

Production Process

Old world wine as it is known, comes from the classic wine making regions in Europe. Naturally the growers from these regions- France, Germany, Austria, Italy and Spain have pride in their history. However the introduction of New World wines have disrupted this order and forced Old world wines to compete if they are to succeeded in the global market. New World wine regions include South Africa, the United States, and South America.

Major Companies

Competitive advantage has switched from grape type and vineyard to economies of scale and brand marketing. Although the Old World retains some of the competitive advantage associated with tradition and heritage, it is so fragmened that it is very difficult for wine suppliers to depend on it. Furthermore, the New World is now home to vineyards and wineries that are gaining equal prestige as those in the Old World. This section contains profiles of companies that have taken these different approaches to the industry.

Major Regions

The fact that the 20 leading wine producers are based in 10 different countries reflects the highly fragmented nature of the wine industry. Nonetheless, the industry is becoming consolidated as many producers look to developing regions in order to exploit the global market.

   

 

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