Flashcards in C10 - Factors that Affect the Price of Wine Deck (44)
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1
What are the seven broad brackets into which winemaking costs can be split?
Grape growing
Winemaking
Packaging
Transport, distribution and sales
Taxes
Retailers
Market forces
2
What are the costs associated with establishing a vineyard?
The land (especially in high-reputation regions)
Soil preparation
Cost of vines
Building the trellis
3
What is typically the largest production cost in an established vineyard?
Labour
4
How may the cost of labour be kept low?
By relying on a seasonal, casual workforce or mechanisation
5
How may labour costs be further reduced in an established vineyard?
By growers sharing labour or machines
6
Where are the money saving economies in vineyards less possible?
In steep vineyards and some isolated sites
7
Other than practical considerations, what else may affect the price of grapes?
Market forces
8
What are the most obvious costs involved in winemaking?
Equipping and maintaining the winery with necessary equipment
9
Give an example of winery equipment which can be shared (reducing costs)
Bottling facilities
10
Other than cost of equipment, what else must be considered regarding cost of winemaking?
Time kept at the winery before release
11
Why is time kept at the winery an important cost consideration in winemaking?
Storage facilities can be expensive to maintain
A lot of money is tied up in stock that cannot be sold to generate a profit straightaway (delay on sale is factored into the price of the wine)
12
Which main aspects of packaging factor into the cost of wine?
Bottles, labels, capsules, closures and cartons (design and purchase)
13
What kind of packaging is more costly?
Unusually shaped or heavy bottles
14
How can packaging costs be reduced?
By bottling in the market where the wine is to be sold
15
Why is it not always possible to bottle at the intended market?
This is only possible for large producers
It is not always permitted by local wine laws
16
Describe the role of taxes in the cost of wine
Nearly every government taxes alcoholic drink
Tax levels vary wildly from country to country
17
What is the logic behind taxation of alcoholic beverages?
This tax is seen as essential to controlling alcohol consumption by increasing retail price
The tax is an important source of government revenue
18
Describe the role of retailers in wine cost
Shops and generate will add money to the cost of wine so that they can make a profit
19
Why is wine generally more expensive in restaurants than shops?
Restaurants expect to generate more profit from wine
The price also reflects the occasion, the environment and the level/style of service
20
What is the broadest/largest determiner of the cost of wine?
Market forces (how much the destination market is prepared to pay)
21
Pertaining to market forces, when may the retail price of a wine far outweigh the costs?
Where high demand exists for a product available in limited supply
22
Give a wine type, the price of which has suffered the effects of high demand and limited supply
Bordeaux premium estate wines
23
Give an example of an area where some vineyards have been unable to sustain themselves due to demand being too low
Some steep vineyard Mosel sites
24
What are the three main types of wine producer?
Co-operatives
Merchants
Estates
25
What is a wine co-operative?
A wine business owned by its members; typically grape growers
26
What is the major advantage for a grower of co-operatives?
They are guaranteed a buyer
27
What is the potential large disadvantage for winemakers of a co-operative?
They may not always have complete control over the quality of grapes supplied by their employers
28
What quality can one expect from co-operative wineries?
Any (some produce the best wines of their area)
29
Where are co-operatives most common?
In europe
30
